Alberta moves to limit lawsuits under new auto insurance system
EDMONTON – Alberta is moving forward with major changes to its auto insurance system. The province is aiming to provide faster care for injured motorists, and lower premiums for drivers while limiting the right to sue in most vehicle collision cases.
The proposed Automobile Insurance Act, introduced in the legislature, would transition the province to a “care-first” model starting January 1, 2027. If passed, the legislation would prioritize medical care, rehabilitation, and income support for Albertans injured in vehicle crashes, while reducing costly legal battles.
“Care-first is a term we use intentionally because Albertans who are injured in a collision truly need their care and well-being to come first,” said Nate Horner, Alberta’s Minister of Finance. “Our goal is to build a stronger auto insurance system to better protect Albertans and their pocketbook.”
The new system would provide injured Albertans with enhanced medical care, rehabilitation services, daily living assistance, and other supports. It would also include income support and retirement benefits for those unable to work or attend school due to their injuries. In cases of permanent impairment, Albertans could be eligible for long-term compensation, including a death benefit for families if a collision is fatal.
Under the proposed changes, injured drivers would lose the ability to sue in most cases. Legal action would only be permitted if the at-fault driver is convicted of a serious offence under the Criminal Code or Traffic Safety Act. Otherwise, claims for medical care and financial support would be handled directly through insurance providers.
The government argues that restricting lawsuits will reduce legal costs, speed up care, and eventually lead to lower premiums. Injured Albertans could still pursue legal action for out-of-pocket expenses not covered by their insurance.
Critics warn that limiting the right to sue could restrict victims’ access to full compensation, especially for long-term or catastrophic injuries.
Dr. Jacqueline Boyd, chair of the Chiropractic Association of Alberta, said the new system would improve access to care. “In Alberta, the new system will ensure that those needing care after a collision receive immediate, high-quality chiropractic services and team-based care,” she said.
The legislation also proposes creating an independent Alberta Automobile Care-first Tribunal, allowing Albertans to appeal decisions made by their insurers regarding benefits.
