Report projects up to $366 in annual vehicle insurance savings under care-first model

An independent report says Alberta drivers with basic auto insurance coverage could save up to $366 per vehicle each year under the province’s planned care-first insurance system.

The report, released by the Automobile Insurance Rate Board and prepared by Oliver Wyman Limited, examined projected claim costs under the new model, which Alberta plans to introduce on Jan. 1, 2027.

The province said the care-first system would replace much of the current court-based approach with a model focused on immediate access to medical care, rehabilitation and income support for people injured in collisions.

Finance Minister Nate Horner said the report suggests the new system will improve benefits for injured Albertans while helping control costs.

“Our goal is to build a stronger auto insurance system that better protects Albertans and their wallets,” Horner said in a statement. “This independent report shows that care-first auto insurance will deliver better injury benefits, meaningful savings, and greater stability for drivers over the long-term.”

According to the province, rising legal costs, inflation, vehicle theft, weather-related losses and tariffs have all contributed to pressure on insurance premiums.

The report also found Alberta’s Good Driver Rate Cap is helping shield safer motorists from sharp increases. Without that cap, the average cost of full auto insurance coverage could have risen above $3,100 by Jan. 1, 2027, the province said.

With the care-first model in place, average auto insurance costs are expected to be about $2,000 per policy in 2027.

Under the new system, premiums would be based more heavily on individual risk factors, meaning drivers with better records are expected to pay less, while higher-risk drivers would pay more.

Michelle Chimko, president and chief executive officer of the Alberta Motor Association, said the organization supports the shift.

“While there are many factors that contribute to individual auto insurance premiums, we believe care-first will support improving overall affordability for Albertans through a more sustainable regulatory environment,” Chimko said. “Care-first also expands benefits for injured Albertans, which should result in better health recovery outcomes for Albertans who need it.”

The Automobile Insurance Rate Board is an independent agency established under Alberta’s Insurance Act. It regulates auto insurance company rating programs and provides public information about auto insurance.