The Alberta government has announced plans to overhaul the province’s auto insurance system, shifting from the current at-fault system to a no-fault system—or as they’re calling it, a “Care-First” system.
While this may sound like a positive change, the reality is that it takes away important rights from injury victims, giving insurance companies full control over claims and compensation decisions. If these changes go ahead, Albertans will no longer be able to sue at-fault drivers in most cases, even when serious injuries occur.
At Hammer Injury Law, we believe these changes will hurt Albertans, particularly those who suffer life-altering injuries. This isn’t about making the system better for drivers—it’s about increasing insurance company profits at the expense of injury victims.
Nothing Is Changing Until 2027
For now, Alberta’s current at-fault insurance system remains in place. If you’re injured in an accident before 2027, you can still pursue compensation under the current system. This means that any injuries sustained in a motor vehicle accident before the no-fault system takes effect will still be handled under the existing at-fault rules. You will retain your right to sue the at-fault driver’s insurer for damages, including medical expenses, lost wages, and pain and suffering.
The proposed no-fault system won’t take effect until at least January 2027, and there are still opportunities for Albertans to push back against these changes. If you disagree with the proposed shift, now is the time to speak up and make your voice heard.
What No-Fault Insurance Means for You
Under Alberta’s current at-fault system, if another driver causes an accident that injures you, you have the right to sue their insurer for compensation. This includes:
- Medical expenses such as hospital stays, rehab, and long-term care
- Lost wages if your injuries prevent you from working
- Pain and suffering to compensate for the physical and emotional toll of your injuries
- Accountability for negligent drivers and their insurers
The proposed Care-First no-fault system eliminates most of these rights. Instead, it would:
- Prevent most lawsuits against at-fault drivers, regardless of how serious your injuries are
- Give insurance companies total control over claims, deciding what care and compensation you receive
- Eliminate compensation for pain and suffering in most cases
- Make it nearly impossible to challenge unfair claim denials
No-fault insurance removes legal protections for Albertans while giving insurance companies unchecked power over injury claims.
Why These Changes Are Bad for Albertans
The government argues that this system will focus on care rather than legal battles, but the reality is far more concerning. Here’s what’s at stake:
- Loss of rights – Albertans will lose the ability to hold at-fault drivers accountable and challenge unfair treatment from insurers.
- Inadequate compensation – Many injury victims will receive far less compensation than they do under the current system, particularly for long-term losses like career-changing injuries.
- Higher costs for taxpayers – Instead of insurers paying for injury victims’ needs, costs will shift to Alberta’s public healthcare and social assistance programs.
- Disproportionate impact on working-class Albertans – Those without financial safety nets will be hit hardest, facing serious financial and emotional strain when injuries leave them unable to work.
This system isn’t about protecting Albertans—it’s about protecting insurance company profits.
Insurance Companies Can’t Be Trusted
Alberta’s insurance industry has a long history of overcharging drivers and violating consumer protection laws.
A newly released report from the Alberta Superintendent of Insurance found that between 2022 and 2024, auto insurers in Alberta were fined over $3.1 million for overcharging consumers.
This isn’t an isolated incident. Since 2016, insurers have been fined more than $6.4 million for illegal overcharges and billing violations. The latest industry-wide investigation revealed:
- 27 insurers engaged in improper billing practices
- 21 insurers were fined for breaking the law
- Common violations included charging for ineligible surcharges, failing to apply discounts, and “programming errors” that led to inflated premiums
Insurance companies already overcharge Albertans under the current system. Yet, the Alberta government is now proposing to give them even more control under no-fault insurance.
If insurers have repeatedly put profits ahead of fair treatment, why should we trust them to control injury claims without oversight?
No-Fault Insurance in British Columbia: A Warning for Alberta
In 2021, British Columbia switched to a no-fault insurance system, removing the right of injury victims to sue at-fault drivers. The government promised it would improve care and reduce costs. Instead, BC drivers are now stuck in a broken system that benefits insurers at their expense.
Under BC’s no-fault system, injured drivers can no longer take legal action against the person responsible for their injuries, even in cases of serious negligence. Instead, insurance companies decide how much compensation, if any, an injured person receives. Victims have reported:
- Lower compensation for injuries, leaving them struggling to cover medical and rehabilitation expenses
- Longer claim resolution times, despite promises of a faster process
- Limited legal options, making it nearly impossible to fight back against unfair claim denials
BC’s experience proves that no-fault insurance does not protect drivers—it protects insurance companies. Alberta must not repeat these mistakes.
If Alberta adopts this system, injury victims here will face the same devastating consequences seen in BC: lower payouts, longer wait times, and no legal recourse.
What You Can Do to Stop No-Fault Insurance
Although nothing changes until 2027, the time to act is now. Albertans can still push back against these harmful changes by making their voices heard.
Here’s how you can help:
- Contact your MLA and tell them you oppose no-fault insurance. The government needs to know that Albertans will not accept these changes.
- Stay informed—as these discussions continue, keep up to date on what this means for you and your rights.
- Talk to your friends and family—many Albertans are unaware of how drastically no-fault insurance will impact them.
At Hammer Injury Law, we are committed to protecting Albertans’ rights. Rick Mallett, a past president of the Alberta Civil Trial Lawyers Association (ACTLA), has spent years advocating for injury victims and fighting against unfair insurance practices. He understands exactly why no-fault insurance will hurt Albertans—and he will continue working to ensure injury victims get the compensation they deserve.
If you have questions about how these changes could affect you, contact us today.
Alberta deserves better than a system that puts corporate profits ahead of injury victims. Let’s stand together and say no to no-fault insurance.