‘Care-First’ Reforms to Alberta Auto Insurance

Regulation
Reforms effective on

Summary

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:

  1. Comprehensive medical and recovery
  2. Income replacement

“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.

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