Alberta is set to overhaul its auto insurance system, which is expected to provide faster care for collision victims and save drivers up to $400 annually.
Earlier today, the Alberta government announced significant reforms to the auto insurance system aimed at delivering better, faster care for injured drivers while reducing premiums.
The new, private, care-focused system follows feedback from over 16,000 Albertans via an online survey.
“Albertans have been clear they need an auto insurance system that provides better, faster care and is more affordable,” said Premier Danielle Smith.
“When it’s implemented, our new privately delivered, care-centred insurance system will put the focus on Albertans’ recovery, providing more effective support and will deliver lower rates.”
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Under the new system, catastrophic injuries will receive lifetime care, while serious injuries will be treated until full recovery.
Legislation is expected in spring 2025, with full implementation by January 2027.
The province added that despite future savings, the good driver rate cap will increase to 7.5% in January 2025 to address rising legal and repair costs.
In a statement, Aaron Sutherland, vice president of Pacific and Western for the Insurance Bureau of Canada (IBC), said the bureau welcomes the announcement but has concerns about maintaining the rate cap, calling it “unsustainable.”
“Rising legal costs are one of the key drivers of the premiums drivers pay in Alberta today, and actions to address these present the greatest opportunity for improved rates,” he stated.
“Reforms will take time, and the continuation of the rate cap is likely to lead to further consumer harm and a deterioration of Alberta’s competitive auto insurance market. “