Alberta’s government is discussing whether some injured drivers should retain broader access to lawsuits under the new Care-First system, giving Edmonton injury lawyers and accident victims another issue to watch before the model begins in January 2027. The talks could affect how serious injuries, disputed benefits and losses outside policy coverage are handled after a collision.
Alberta Is Reconsidering How Much Litigation Should Remain
The proposed Care-First model moves Alberta away from its current tort-based auto insurance system. Under the new framework, injured people would receive treatment and income support from their own insurer without first proving another driver’s fault.
That basic structure is still in place. The recent development is the government’s discussions with lawyers about retaining more litigation rights in certain situations. The Treasury Board and Finance officials met with personal injury lawyers over the summer to discuss what broader access to lawsuits could look like.
These discussions reflect a central challenge for Alberta’s insurance reform. Care-First aims to control insurance costs and provide faster access to benefits, but questions remain about how injured people can pursue compensation when their losses exceed their coverage or their benefit claims are disputed. Alberta drivers can expect policies to include:
- Expanded health care and accessibility benefits: Access to comprehensive medical care and accessibility support, with treatment decisions guided by health professionals rather than insurers.
- Higher income replacement: Wage and income support benefits intended to rank among the most generous in Canada.
- Substantial lump-sum payments: Permanent impairment benefits of up to approximately $298,520 for qualifying serious injuries.
The ability to seek compensation for eligible out-of-pocket recovery expenses not covered by the policy and pursue lawsuits involving qualifying Criminal Code offences or serious Traffic Safety Act violations.
The government discussions could determine whether additional circumstances allow injured drivers to take legal action. Until the rules are finalized, the extent of any expansion remains uncertain.
“Under the current system, Alberta’s drivers pay some of the highest premiums in Canada while facing delays in care and recovery due to lengthy litigation battles that add costs and reduce benefits… Care-First will put money back in Albertans’ pockets while ensuring people injured in collisions receive enhanced care, financial support and recovery benefits to better support their recovery.”– Aaron Sutherland, Vice-President, Pacific & Western, Insurance Bureau of Canada (IBC)
Not sure where your motor vehicle accident claims stand? Visit our personal injury law firm and talk to experienced injury lawyers in Edmonton for a free consultation. We work on a contingency fee basis, so there are no upfront fees. Expect legal services that prioritize your goal of receiving fair compensation.
Why Alberta Is Looking at Litigation Again
- Premiums kept climbing.
- Applied Systems reported that personal-auto premium rates rose 6.5% year over year in Q2 2023, and 1.1% from Q1 to Q2.
- In Automobile Insurance Rate Board (AIRB) data, full coverage premiums rose 8.7%, from $1,751 in 2024 to $1,903 in 2025.
- According to the Alberta Superintendent of Insurance, it lost more than $1.2 billion on auto insurance in 2024, paying 18% more in claims and expenses than it collected in premiums.
- Litigation drove part of the cost.
- MNP data, commissioned by the Insurance Bureau of Canada, found a 48% increase in collision-related lawsuits between 2018 and 2022.
- The same data estimated legal costs at roughly 20% of mandatory auto-insurance premiums, or about $200 per policy.
- According to the General Insurance Statistical Agency (GISA), the average legal settlement tied to Alberta auto insurance was above $100,000 in 2023.
Not every claim becomes a lawsuit. These numbers do show why litigation is now at the centre of the provincial insurance debate.
The Cost Issue Goes Beyond Lawsuits
Several factors contribute to Alberta’s insurance costs. Litigation is one of them.
Although lawsuit expenses are part of Alberta’s insurance debate, other factors also influence premiums. Vehicle repair costs, theft, severe weather and bodily injury claims can all increase the amount insurers pay.
The Automobile Insurance Rate Board has also reported that approximately 900 collisions, injuries or fatalities occur each year in Alberta construction zones, resulting in millions of dollars in property damage. These incidents add to the broader costs associated with road safety and insurance claims.
For injured drivers, the cost debate raises a separate concern. A system that reduces litigation may lower certain legal expenses, but the rules must still account for people whose injuries create substantial financial needs. The government’s discussions about expanded litigation will help determine how those competing priorities are balanced.
“Care-First will provide the strongest auto insurance coverage in Canada, including the country’s highest recovery benefits for people injured in collisions, while saving Alberta drivers an average of $260 a year.”
A Claim Can Still Involve Your Own Insurance Company
One major change is who pays first. Under Care-First, your own insurer would provide the primary benefits after a collision, regardless of fault. That means a dispute may initially involve the insurer you already deal with for coverage. A disagreement over treatment, income replacement or impairment can become a benefits dispute before it becomes a lawsuit.
Injured in an accident due to someone else's negligence or wrongful act? Get in touch with skilled Edmonton personal injury lawyers to review your circumstances, explain your available options, lay out the legal process, and help you understand how Alberta's insurance rules may affect your claim. Let's make sure you get the compensation you deserve.
Why the Litigation Exceptions Matter (and What Could Change Next?)
The proposed Care-First framework could change how Alberta courts assess access to civil claims, particularly if the government expands or clarifies the circumstances in which injured people can pursue litigation. Future policy changes may determine if:
1) Additional categories of serious misconduct qualify for lawsuits
2) Certain injury-related losses remain recoverable outside the standard benefits system
Several issues could influence how the framework develops:
- Broader grounds for litigation: Future amendments could expand the circumstances under which injured people can sue at-fault drivers.
- Greater clarity on recoverable losses: Regulations or court decisions may clarify which expenses and damages fall outside the benefits available under Care-First.
- Stronger rules for disputed claims: Future legal interpretations could establish how fault, evidence and causation affect eligibility for an exception.
- Changes to dispute resolution: The framework may evolve to address disagreements over benefit eligibility, claim assessments and access to civil courts.
These developments could affect how injured Albertans pursue compensation and how personal injury lawyers assess potential claims. Until the final rules and their legal interpretation become clearer, the scope of future litigation rights remains an important issue to watch.
Alberta’s Auto Insurance Rules Are Entering a New Phase
Care-First will significantly change how Albertans receive benefits after collisions. The government is promoting faster treatment, broader income protection and fewer court battles.
At the same time, debate over expanded litigation shows that the role of courts hasn’t disappeared from the discussion. Serious offences, uncovered expenses, and severe injuries could remain areas where legal action matters.
If you’re dealing with serious injuries, emotional distress, future income loss or substantial medical costs, getting advice early can help you identify the rules that apply to your situation. Sidhu Personal Injury Lawyers Edmonton provides legal representation for personal injury matters, including motor vehicle claims and other types of personal injury cases like slip and fall claims, long-term disability claims, and more.
Frequently Asked Questions
Can you sue for expenses that exceed care-first benefits?
Yes. Under Alberta’s new Care-First model, injured drivers may be able to sue an at-fault driver for eligible out-of-pocket expenses that exceed the maximum benefits available under their insurance coverage. Court access can also apply to pain and suffering damages when the at-fault driver is convicted of a qualifying Criminal Code offence or certain major offences under Alberta’s Traffic Safety Act. Talk to an experienced personal injury lawyer for legal guidance.
Could expanded litigation reduce Albertans’ auto insurance savings?
Alberta drivers are expected to save an average of $297 per vehicle under the Care-First insurance model. Although the Insurance Bureau of Canada warns that broader lawsuits could reduce projected savings, an experienced Edmonton injury lawyer may argue that litigation remains necessary for Albertans whose injuries or losses aren’t adequately covered by insurance benefits.
How do the 5% and 10% rate caps work under Care-First?
Insurers can’t increase rates by more than 5% across their overall customer base each year. An individual driver’s premium can’t increase by more than 10% at renewal. These caps work together to limit broad premium increases while protecting individual drivers from sharp rate increases.