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What a No-Fault (Care-First) Insurance System Means for Injured Albertans

Apr 17, 2025

Big changes are proposed to car insurance in Alberta.

The government is planning to switch to a “Care-First insurance system,” which is no-fault insurance. On March 24, 2025, the Alberta government introduced Bill 47: The Automobile Insurance Act into the legislature as a proposed piece of legislation.

So, what does this mean? If you’re in a car accident, your own insurance will cover your medical costs and other losses, no matter who’s at fault.

What’s at Stake?

If these changes go forward as proposed, it could mean: 

  • In most cases, Albertans injured in car accidents would no longer have the right to sue the at-fault driver for pain and suffering, bodily injury, or death following a motor vehicle accident. 
  • There may be exceptions for cases where the at-fault driver is convicted under the Criminal Code or Traffic Safety Act, or where a third party (like a manufacturer or municipality) is responsible. 

The government says this new model will offer lifetime care. But there’s growing concern that the reality could be less coverage, more insurer control, and no legal recourse for many injured Albertans. 

Why Your Voice Matters

The regulations that are now being written will shape how this law actually works—what’s covered, what isn’t, and whether or not real accountability exists. 

That’s why now is the time to speak up. 

If you or someone you know has ever been injured in a collision, you understand how important it is to have access to proper care, compensation, and legal support. These changes won’t impact past or current claims—but they will affect anyone injured in a motor vehicle accident after January 1, 2027. 

How Could No-Fault Insurance Impact Injured Albertans?

Here’s the catch—you’ll no longer be able to sue the at fault party for compensation in most cases. And many injured Albertans will get no compensation at all for pain and suffering.  

Starting in January 2027, insurance companies, not the courts, will decide what care and benefits you get. We believe strongly that this system will be worse for Albertans and will not deliver on the promise of reduced auto insurance premiums. It will simply mean more profits for insurance companies at the expense of injury victims and taxpayers. 

While the government is in the early stages of making these changes, we want to address what this will mean for injured Albertans and those currently navigating injury claims.     

Here’s what we know: 

    • The government intends to move towards a private no-fault model, which they are calling a “Care-First” system.  
    • No changes will take effect until January 2027. If you are injured in an accident before that date, you will still have up to two years from the date of your accident to file an injury claim
    • There will continue to be opportunities for public feedback, and we’ll make sure our voice is heard in those discussions. If you share concerns about these changes, we encourage you to contact your local MLA to voice your opinion and help ensure injured Albertans continue to receive fair treatment. Tell them to say no to no-fault.

The work we do has a profound impact on the lives of injured Albertans, ensuring they receive fair compensation and care when they need it most. A Care-First insurance system as it has been announced so far, is a “no-fault” type of system that shifts decision-making power from the courts to insurers. In other words, if you disagree with what the insurance company offers you, you won’t be able to hold them accountable in court. This massive power imbalance raises concerns about transparency and fairness for those navigating life after an injury. At Litco Law, we’ll continue to advocate for injured Albertans, protecting their right to sue and seek fair compensation. 

What This Means for You  

If you are currently pursuing an injury claim, rest assured—these discussions and any future changes will not impact your case. Additionally, if you are involved in an accident between now and January 2027, you will still have the right to hire a lawyer and pursue compensation. In the meantime, we’ll continue to support our clients and work to achieve the best possible outcome for you.  

We believe that Albertans should have the right to seek fair compensation and hold at-fault parties accountable. As discussions progress, we will keep you informed, answer your questions, and continue to advocate for a system that prioritizes transparency and fairness for injured Albertans. 

Here’s How You Can Take Action

Every voice matters—especially now, while the details are still being written. 

SIGN THE PETITION NOW

Want to do even more? Here are a few additional ways you can help impact Bill 47:  

  • Contact Your MLA — MLAs are there to represent you, and they want to hear directly from people in their community. Make sure your voice is heard and share your concerns regarding Bill 47. Click here to contact your MLA.  
  • Contact Alberta’s Finance Minister, Nate Horner —As the minister responsible for overseeing Alberta’s insurance industry, Nate Horner plays a key role in Bill 47. Your voice could help shape this legislation. Click here for contact details.  

Talk to your friends, family & coworkers and get them involved in the conversation.  

We’ll continue to share updates as more information becomes available. 

If you have questions or want to learn more, don’t hesitate to reach out to us or visit AlbertaNoFault

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Important!

If you agree to an insurance company’s settlement offer, you give up your legal right to pursue a personal injury claim. It is best to assess the full extent of your injuries and how they will affect your life before you accept an offer. Please note that you have a maximum of two years from the date of the accident to file an injury claim in Alberta.

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