Two-thirds of Albertans support the provincial government's Care-First auto insurance reforms set to take effect in January 2027, with a majority citing lower prices as the most important feature of the new system, according to a survey released by Yorkville Strategies.
When asked about the new model, 62% of respondents said they support it. Fifty-one percent (51%) cited lower auto insurance prices as the most important feature, while 21% prioritized improved benefits and care for those injured in collisions. Despite that support, only one-third of respondents were aware the new system comes into effect in January 2027 — a finding that prompted the Insurance Bureau of Canada to launch a consumer awareness campaign this week.
"At a time when the cost of everything is going up, the cost of auto insurance is going to go down with the introduction of Care-First next year," said Aaron Sutherland, vice-president, Pacific and Western, Insurance Bureau of Canada. "This is a welcome change for Alberta drivers who, on average, will save hundreds of dollars annually, while receiving the best care and benefits in the country if they are injured in a collision."
The new system, which takes effect Jan. 1, 2027, moves away from the current court-based model toward direct access to care.
Medical and rehabilitation coverage, currently limited to $50,000 over two years, will increase to unlimited eligible expenses over a lifetime, while income replacement will rise significantly for eligible claimants. An independent report prepared by Oliver Wyman for the Alberta Auto Insurance Rate Board projected average savings of up to $366 per vehicle per year for drivers with basic coverage under the new system.
The survey found 57% of respondents support decreasing the ability to sue in exchange for the savings and improved benefits Care-First provides, while just 13% want to see the right to sue maintained at its current level. Sutherland said legal costs currently account for 20% of premiums.
The survey's strong support for Care-First arrives against a backdrop of serious market deterioration that four years of rate intervention have produced. Alberta's Superintendent of Insurance reported that in 2024, 35 insurers lost money on auto insurance, contributing to a record $1.2 billion industry loss, with insurers paying out 18% more in claims and expenses than they collected in premiums.
Since 2017, Alberta insurers have faced multiple rate interventions: a 5% rate cap between 2017 and 2019, a full rate freeze in 2023, a 3.7% good-driver cap in 2024, and a 7.5% cap in 2025 continuing into 2026. Three carriers have exited the Alberta market entirely, forcing tens of thousands of drivers to seek coverage elsewhere, with many now facing fewer choices and less tailored coverage.
Insurers that have withdrawn cited the rate cap as the primary driver, with legal costs growing 34%, the cost of delivering care and recovery benefits rising approximately 25%, and auto theft costs up 21% — all running well ahead of the capped rate increases available to carriers.
The 81% of survey respondents who said the government must do more to attract competition back to the market reflects precisely this problem. Brokers have increasingly reported difficulty placing coverage, particularly for higher-risk drivers, as the pool of available insurers has shrunk.
Care-First represents an attempt to address the root cause of Alberta's market dysfunction rather than its symptoms. By removing most litigation costs from the system and replacing them with direct benefit access, the reform is designed to restore the underwriting economics that make the province a viable market for capacity.
The goal is to make it easier for Albertans injured in collisions to access medical, rehabilitation and income supports, while reducing the legal costs and delays that have burdened the system and driven up premiums across the board. Whether that logic translates into the competition and choice that 81% of Albertans said they want will depend on how successfully insurers can rebuild confidence in the province once the new framework takes hold in 2027.
"Legal cost pressures currently account for 20% of the premiums drivers pay. The new system will deliver lasting premium stability for drivers by removing most of these escalating costs and putting a greater focus on care over court for those injured in collisions," Sutherland added. "Alberta's insurers look forward to working with the government to finalize Care-First and deliver it to customers in January 2027."
