The Insurance Board of Canada (IBC) is praising the benefits of Alberta’s Care-First auto insurance model, set to be fully rolled out on Jan. 1, 2027. Recently, the Government of Alberta announced additional regulations that will provide provincial drivers average savings of $260 per year.
As part of Alberta’s automobile insurance reform system, Care-First is designed to improve the benefits Albertans receive when injured in collisions while also reducing the overall cost of auto insurance.
Once Care-First is implemented, Alberta drivers will have access to:
- Better health care and accessibility benefits: Injured Albertans will have access to what the province describes as the highest level of care and accessibility support in Canada, with treatment determined by health professionals rather than insurers.
- Improved income replacement: Care-First will provide some of the highest wage and income replacement benefits available in Canada.
- Higher compensation for serious injuries: Eligible individuals could receive lump-sum payments of up to $298,520 for serious injuries.
- Expanded ability to sue: Individuals will retain the ability to pursue compensation for eligible out-of-pocket recovery expenses (such as health equipment) that are not covered by their policy, as well as for collisions involving certain Criminal Code or serious Traffic Safety Act violations.
The IBC says the current Alberta auto insurance system has been increasingly affected by litigation and the rising costs associated with bodily injury claims.
New data from the General Insurance Statistical Agency (GISA), which is overseen by provincial insurance regulators, indicates that more than half of current auto insurance premiums go toward litigation-related costs and injury claim settlements.
Under Care-First auto insurance, the Alberta government will direct more of those costs towards improved medical care, income supplements and recovery benefits while also reducing the premiums paid by drivers.
Preparing for new rates
The new regulations put forth by the Alberta government have provided insurance companies with the information they need to begin developing new rates for the Care-First system. For Alberta drivers, the transition mainly represents a significant change to how auto insurance claims involving injuries will be handled. The goal is to make coverage more affordable, and the new system will change benefits available to injured drivers and the circumstances in which legal action can be pursued.
Pay attention to upcoming changes to your policy and renewal notices so you understand how Care-First may affect your coverage, benefits and premiums.
Keep your rates low with proactive driving
Defensive driving is sometimes referred to as “proactive driving,” and for good reason. The word “defensive” can sometimes suggest a driver who is overly cautious, slow or nervous behind the wheel. In reality, defensive driving is about being prepared, alert and proactive.
The Government of Alberta provides these seven major tips for defensive (or proactive) driving:
- Look well ahead and continually scan your surroundings. Rather than focusing only on the vehicle immediately in front of you, keep your eyes moving and look well down the road for developing hazards. In urban areas, drivers should try to scan approximately 12 to 15 seconds ahead, or roughly one to one-and-a-half blocks. In rural areas, the recommended distance increases to about 20 to 25 seconds. You can test yourself by choosing a landmark ahead and counting how long it takes to reach it.
- Check your rearview mirror every eight to 12 seconds to help you stay aware of vehicles approaching from behind or preparing to pass.
- Anticipate both fixed and changing hazards. Fixed hazards are permanent features or conditions, including steep hills, blind corners and intersections. Changing hazards, on the other hand, can change from moment to moment and include unpredictable pedestrian behaviour, icy or slippery roads, traffic patterns and signals, and the actions of other drivers.
- Maintain plenty of space around your vehicle. A safe buffer zone gives you more options if something suddenly goes wrong. Avoid driving too close to vehicles beside you whenever possible, and leave yourself enough room to slow down, stop or change lanes safely.
- Keep a safe following distance, recommended to be at least three seconds. Tailgating reduces your reaction time and makes it much harder to stop safely if the vehicle ahead brakes suddenly. Under Alberta law, drivers convicted of following too closely can face a $172 fine and four demerit points.
- Know your route before you start driving. Getting lost or suddenly encountering an unexpected road closure can create distractions and lead to rushed decisions.
- Learn how to avoid collisions and maintain control of your vehicle. Evasive manoeuvres, emergency braking and proper vehicle-handling skills are all useful abilities for drivers to develop. Many modern vehicles are equipped with technologies designed to help prevent or reduce collisions, but these systems are not fail-proof.
- Eliminate distractions while driving. Staying focused on the road is one of the most important aspects of defensive driving. A distracted driving ticket can be extremely detrimental to your driving record.
Trust Lane’s for Alberta auto insurance advice and great rates
Lane’s Insurance is a leading Alberta-based brokerage working out of Calgary, Banff, Edmonton and greater Alberta. We are locally owned and work for you, not for the insurance companies. Our experienced insurance brokers work hard to find you the very best coverage at the lowest possible auto insurance rates and are always available to answer your questions.
