On March 24, 2025, Alberta’s Finance Minister Nate Horner introduced Bill 47 – the Automobile Insurance Act to implement the province’s Care-First auto insurance model. The Act received Royal Assent on May 15, 2025, and the new insurance system will be effective as of January 1, 2027.
In response to long-standing frustrations, the Alberta government first announced a new approach in November 2024. The goal is to make it easier for Albertans injured in collisions to access the medical, rehabilitation, and income supports they need and to make auto insurance more affordable by reducing legal costs and delays.
Two main benefit categories will exist under the new Care-First model:
- Comprehensive medical and recovery
- Income replacement
| Benefit Limits | Medical and rehabilitation benefits increase from current $50,000 (for 2 years) to unlimited eligible lifetime treatment under Care-First. |
|---|---|
| Income Replacement | Income replacement expands from lesser of $600/week and 80% of gross earnings (up to 2 years) to up to 90% of net income, capped at a gross yearly income maximum (indexed, e.g., $125,000 in early transition design). |
| Permanent Impairment | New lump sum benefit up to ~$295,000–$298,520 for permanent impairment. |
| Spousal/Survivor Benefits | Spousal support up to $600,000 for fatal injuries. |
| Implementation Date | System effective January 1, 2027, subject to regulatory detail finalization. |
| Litigation Cost Impact | Reform aims to reduce litigation-driven costs (~30–40% of some awards historically consumed by legal fees) by shifting to statutory entitlement. |