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.
“This act, which I’m pleased to introduce today, reflects our commitment to make auto insurance more affordable and beneficial for Albertans.”
Nate Horner, Minister of Finance, first reading of Bill 47, March 24, 2025.
| 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. |