Additional details released by government show Care-First provides best coverage in country

EDMONTON, AB, Aug. 17, 2026 /CNW/ -- Alberta drivers are one step closer to lower auto insurance premiums with the provincial government's release of additional regulations for its new Care-First insurance model.

"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 starting January 1," said Aaron Sutherland, Vice-President, Pacific and Western, Insurance Bureau of Canada. "The Government of Alberta deserves credit putting the affordability of drivers at the centre of its efforts. This is a huge win for Albertans."

Once the new system is up-and-running on January 1, 2027, Care-First policies will provide Albertans with:

• The highest level of health care benefits and accessibility support in Canada, with care led by health professionals – not insurers.
• The highest level of wage and income replacement benefits in Canada.
• Among the highest lump-sum payments in Canada, providing financial compensation of serious injuries of up to almost $296,000.
• The ability to sue for out-of-pocket recovery expenses not included in their coverage and for collisions that involve Criminal Code or serious Traffic Safety Act violations.

"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," said Sutherland. "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."

For more than a decade, auto insurance premiums in Alberta have been under pressure from litigation trends and legal costs associated with bodily injury claims.

According to new data from the General Insurance Statistical Agency (GISA) – a statistical agency overseen by provincial insurance regulators – more than 50% of premiums today go toward costs associated with litigation and injury claim settlements. Care-First redirects these costs to vastly improve the care and benefits provided following collisions, while reducing the price drivers pay for their insurance coverage.

The release of these regulations gives insurers the details they need to begin pricing the new system and preparing renewal notices for customers.

About Insurance Bureau of Canada

Established in 1964, Insurance Bureau of Canada (IBC) is the national industry association representing Canada's private home, auto and business insurers. Its member companies make up the vast majority of Canada's highly competitive property and casualty (P&C) insurance market.

As the leading advocate for Canada's private P&C insurers, IBC collaborates with governments, regulators and stakeholders to support a competitive environment for the P&C insurance industry to continue to help protect Canadians from the risks of today and tomorrow.

IBC believes that Canadians value and deserve a responsive and resilient private P&C insurance industry that provides insurance solutions to both individuals and businesses.

For media releases, IN Focus articles or to book an interview with an IBC representative, visit ibc.ca. Follow us on LinkedIn, X and Instagram, and like us on Facebook. If you have a question about home, auto or business insurance, contact IBC's Consumer Information Centre at 1-844-2ask-IBC. We're here to help.

SOURCE Insurance Bureau of Canada