Right now, there’s a lot of confusion about Alberta’s move to a Care-First insurance model.
The truth is, the new system doesn’t start until January 1, 2027. Until then, the current rules still apply. If you’re injured in an accident before that date, you may still have the right to sue the at-fault driver.
So, let’s clear some things up. In this article, we’ll explain what the care-first model is, why it’s being introduced, and what it means for your ability to claim compensation.
Most importantly, we’ll explain exactly where you stand today—and why timing can make all the difference.
What’s Changing? The New Care-First (No-Fault) Insurance System
Bill 47, the Automobile Insurance Act, creates a new framework for Albertans after a car accident. The legislation specifies:
- Which benefits you may be entitled to if you’re hurt
- The conditions under which you can sue an at-fault driver
- How to appeal insurance company decisions
The goal is to shift the focus from court battles to “care first.” Instead of suing for compensation, injured or affected people can make a claim with their own insurance to get the medical or financial support they need right away. This enhanced benefits coverage would apply to anyone injured in a car accident, regardless of who caused it. However, the ability to sue in certain situations will remain.
Why The Change?
This new model is an attempt to make auto insurance more affordable for Albertans. Currently, the Alberta tort system allows an injured person to sue the at-fault party in court for damages. To cover litigation costs, insurance companies raise premium rates. By limiting a person’s ability to sue after a car accident, the government aims to decrease premiums over time.
What Are The Pros and Cons of The New Care-First Model?
Ultimately, the proposed reforms are meant to benefit consumers. But there are trade-offs.
| Pros | Cons |
| Legislated Care-First Model: Bill 47 formally establishes a shift toward a care-based, no-fault approach for auto insurance injuries. This gives immediate access to treatment without waiting for fault determination. | Significant Limits on Litigation: Bill 47 codifies restrictions on suing for minor and moderate injuries. Monetary compensation for pain and suffering is reduced or unavailable in many cases. |
| Consumer Protections: There are statutory benefits and clear insurance obligations. This improves oversight and complaint processes. | Risk of One-Size-Fits-All Coverage: Standardized benefits and wage-loss caps may not address all needs, especially for high-income earners or unique cases. |
| More Stable, Predictable Premiums: The legislative framework will guide premium setting, reducing volatility. Caps and restrictions on litigation help manage insurer costs. | Potential for Reduced Payouts: Injured parties may find the statutory benefits don’t fully cover long-term or unique costs. The payouts may be less than what would be awarded in the tort-based system. |
| Transition Deadline: Drivers, insurers, and the legal and medical sectors have until January 1, 2027 to adjust to the changes. | Complex Transition: Stakeholders must make significant operational changes. |
For those seeking personal injury claims, it’s crucial to understand that your right to sue for pain, suffering, or loss of income will be restricted. What’s more, your medical and financial benefits will be capped. These statutory benefits may not fully cover your needs, especially if your injuries are severe or your income is above average.
Can I Still Sue Before The Policy Change?
The timing of your accident makes a big difference. If you’re injured before January 1, 2027, the current system still allows you to pursue legal claims for pain, suffering, and lost wages.
That’s why it’s critical to get legal advice as soon as possible after an accident to preserve your rights.
Early action means you have the best chance of protecting your financial and medical recovery, no matter when your accident happens.
Why A Lawyer Still Matters Under The New System
Even though Alberta’s new care-first model limits lawsuits, legal advice still matters. Insurers will manage claims, treatment approvals, and benefit payments under strict rules. Unsurprisingly, these rules can be confusing.
A personal injury lawyer helps you understand exactly what benefits you’re entitled to. Plus, they will challenge any unfair claim decisions.
To help you receive the maximum compensation available, a personal injury lawyer can ensure your injuries and income losses are properly documented.
Most importantly, a lawyer can identify situations where a lawsuit is still possible. For example, you can still sue if your accident happens before the transition, or if your injury falls outside the no-fault rules.
By staying involved, lawyers protect your rights and make sure you’re not leaving money on the table.
Get Legal Help From Trusted Lawyers in Alberta
You’re dealing with enough stress after an accident. But you don’t have to battle insurance adjusters or try to decipher the laws on your own.
Braithwaite Boyle’s team of accident injury lawyers helps protect your rights, gather evidence, and get you any compensation you’re entitled to.
Call today for a free consultation to discuss your case.