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Province Says Drivers Will Save $366 per Year Under Auto Insurance System Coming in for 2027
The province says drivers with basic coverage could save $366 a year as insurers face tighter annual increase limits.
- On Wednesday, the Alberta government announced the Care-First auto insurance system, set to take effect January 1, 2027, with adjusted rate caps limiting annual increases to 5 per cent for insurers and 10 per cent for individual renewals.
- Alberta's current court-based system relies heavily on litigation, with premiums rising approximately 57 per cent over 10 years from $1,153 to $1,817. The province aims to reduce legal expenses by focusing on faster care and recovery instead of lawsuits.
- Drivers with basic insurance coverage are expected to save an average of $366 per vehicle annually. The Automobile Insurance Rate Board will monitor profitability and rating programs to ensure these savings materialize during the transition.
- The Alberta Civil Trial Lawyers Association expressed concerns the model may limit legal recourse, though the province notes the system is not technically 'no-fault.' Injured Albertans can still sue at-fault drivers convicted of Criminal Code offences.
- Finance Minister Nate Horner promised the government will "take further action" if expected savings do not materialize. The Ministry continues monitoring the rollout closely, retaining the ability to tighten policies to ensure drivers benefit.
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Sylvan Lake News
Sylvan Lake NewsAlberta government caps insurance rates ahead of system overhaul
The Alberta government has announced a new insurance rate cap set to come into effect alongside the Jan. 1, 2027, launch of the new ‘Care-First’ auto insurance system. Under the new rate cap, insurance companies will not be able to raise average rates by more than 5 per cent and average drivers will see renewals capped at 10 per cent. “Our priority is ensuring the Care-First system provides notable savings. We will continue to closely monitor th…
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Total News Sources9
Leaning Left4Leaning Right1Center2Last UpdatedBias Distribution57% Left
Bias Distribution
- 57% of the sources lean Left
57% Left
L 57%
C 29%
14%
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