Alberta Care-First Insurance 2027: The Complete Guide

Alberta's auto insurance system is undergoing one of its biggest changes in decades. Starting January 1, 2027, the province will introduce Care-First Auto Insurance, a new system that changes how people receive medical treatment, financial support, and compensation after a car accident.

The biggest difference is how injured people receive help. Instead of relying on lawsuits to recover their losses, Albertans will have access to expanded accident benefits, regardless of who caused the collision. These benefits include medical treatment, income replacement, support for permanent injuries, and financial assistance for families who lose a loved one.

But how much coverage will actually be available? What happens if you cannot return to work? And how does the new system compare with the insurance Albertans have today?

This guide takes a detailed look at Alberta's Care-First accident benefits, including specific dollar amounts, coverage limits, and practical examples to help explain what these changes could mean for you.

Important: The dollar amounts in this article are based on the Government of Alberta's published 2025 benefit comparison. They are reference amounts, not confirmed January 2027 payment levels. Benefits are subject to eligibility requirements, regulations, and applicable adjustments.

Care-First Auto Insurance

1. Why is Alberta changing its auto insurance system?
2. What medical treatment and rehabilitation benefits will be available?
3. How will income replacement benefits work?
4. What support is available for serious and permanent injuries?
5. What death benefits will be available to surviving family members?
6. How will Care-First affect lawsuits, fault, and insurance premiums?
7. What should Alberta drivers do before January 1, 2027?

1. Why Is Alberta Changing Its Auto Insurance System?

Auto insurance has become increasingly expensive in Alberta, with rising vehicle repair costs, medical expenses, and injury claims contributing to higher premiums. The provincial government has identified the cost of injury-related lawsuits as another significant challenge.

Under the existing system, someone injured in a collision can receive basic accident benefits through insurance, but may need to sue the responsible driver to recover additional losses. These lawsuits can take years to resolve and may involve substantial legal expenses.

The Alberta government believes that reducing the need for lawsuits will allow more money to be directed toward medical treatment and financial support. Under Care-First, eligible injured people will receive expanded benefits directly through the insurance system, rather than depending on a court settlement to access additional compensation. The government's goal is to provide faster care, reduce legal costs, and create a more stable auto insurance system.

Care-First is sometimes called no-fault insurance, although that term can be misleading. It doesn't mean nobody is responsible for an accident. Instead, it means eligible injured people can receive benefits regardless of who caused the collision. Drivers who cause accidents still face higher insurance premiums, and serious driving offences can still carry legal consequences.

Alberta will also continue using private insurance companies, meaning drivers will still be able to compare policies, choose insurers, and work with insurance brokers.

2. Medical Treatment and Rehabilitation Benefits

One of the most significant changes under Care-First is the expansion of medical and rehabilitation coverage. Under Alberta's existing accident benefits, injured people generally have access to a maximum of $50,000 in eligible medical and rehabilitation expenses during the first two years following a collision. While this may be sufficient for someone recovering from a minor injury, people with more serious injuries can reach those limits before their recovery is complete.

Under Care-First, reasonable and necessary medical treatment will no longer have a fixed lifetime dollar limit. Eligible treatment can continue for as long as it provides a measurable benefit toward recovery, potentially for the rest of someone's life. This could include physiotherapy, chiropractic treatment, psychological services, occupational therapy, and other approved medical care.

How Does Medical Coverage Compare?

These changes are particularly important for people with injuries that require long-term treatment. For example, someone who suffers a serious back injury might need surgery, rehabilitation, and ongoing physiotherapy over several years. Under the current system, they could exhaust their basic medical benefits and need to pursue additional compensation through a lawsuit if another driver was responsible. Under Care-First, their eligible treatment could continue without the same fixed dollar or time limit.

However, unlimited coverage does not mean unlimited access to any treatment someone requests. Treatment must meet the applicable medical necessity, eligibility, and recovery requirements. Insurance companies will still assess claims and determine whether particular services qualify.

Personal Care Assistance

Some injuries make ordinary activities such as bathing, getting dressed, preparing meals, or moving around the home difficult. Care-First includes personal care assistance benefits for eligible injured people who need help with these tasks. The amount available depends partly on the severity of the injury and the person's assessed needs.

The government's 2025 comparison identifies the following monthly maximums:

For example, someone who suffers a spinal cord injury might require daily assistance with dressing, bathing, and other essential activities. Depending on their condition and eligibility, Care-First could help pay for this assistance on an ongoing basis. This is separate from the medical treatment benefit and is intended to help injured people manage daily life while recovering or living with lasting limitations.

Travel and Accommodation

Medical treatment is not always available close to home, particularly for people living in smaller Alberta communities. Someone injured in Grande Prairie, for example, might need to travel to Edmonton for specialized rehabilitation or medical appointments.

Care-First provides reimbursement for eligible travel and accommodation expenses in accordance with program guidelines. This could reduce the financial burden of travelling for necessary treatment, although reimbursement amounts and qualifying expenses will depend on the applicable rules.

3. Income Replacement and Financial Support

A serious car accident can create financial problems long before someone has fully recovered. An injured person may be unable to work for weeks, months, or even years, while their regular expenses continue. Mortgage payments, groceries, utilities, and family responsibilities do not disappear because someone has been injured.

Care-First significantly expands income replacement benefits to help eligible injured people manage these financial pressures.

How Much Income Will Care-First Replace?

Under Alberta's existing basic accident benefits, income replacement is limited to the lesser of $600 per week or 80% of average gross weekly earnings. These payments are generally available for a maximum of two years, meaning someone who cannot return to work after that period may need to rely on other benefits or pursue compensation through a lawsuit.

Under Care-First, eligible injured people can receive 90% of their net income, calculated using covered earnings up to an annual gross income ceiling. The government's 2025 comparison identifies that ceiling as $125,000, with the maximum intended to be adjusted annually. Eligible income replacement can continue until age 65, subject to the program's rules.

Example: An Albertan Earning $60,000 Per Year

Imagine someone earns $60,000 annually and suffers injuries in a collision that prevent them from working for an entire year. Under the current system, their basic income replacement could be limited to $31,200 for that year, even though they previously earned considerably more.

Under Care-First, the calculation would be based on 90% of their eligible net income. If their eligible net income were $45,000, for example, 90% would equal $40,500. That would be $9,300 more than the current annual basic benefit maximum.

This is a simplified illustration rather than a guaranteed payment. Actual benefits depend on the calculation of eligible income, other available benefits, and the applicable regulations.

What About Self-Employed Workers, Part-Time Employees, and Students?

Not everyone earns a regular salary. Some Albertans are self-employed, work part-time, have temporary jobs, or are between jobs when an accident occurs. Care-First includes provisions intended to address a wider range of employment circumstances, although the amount and type of support available will depend on each person's situation.

Students may also qualify for compensation if their injuries prevent them from completing their education. The government's 2025 comparison lists the following maximum lump-sum amounts for each school year that an eligible injured student cannot complete:

These payments recognize that an accident can interrupt someone's education and future opportunities, even when they are not yet earning employment income. The maximum amounts are not automatic payments and depend on the relevant eligibility rules.

Caregiver and Childcare Benefits

An injury can also prevent someone from looking after their children or other dependants. For example, a parent who suffers a serious injury may be unable to prepare meals, supervise young children, or provide the care they normally would.

Care-First includes caregiver benefits for eligible people who cannot continue these responsibilities because of accident-related injuries.

Separate childcare expense reimbursement is also available, with 2025 reference limits ranging from $143 per week for one person to $283 per week for four or more. Receipts are required for childcare reimbursement, and eligibility depends on the circumstances.

What Happens at Retirement?

The government's comparison also identifies a retirement income benefit calculated using 70% of net income, less applicable pension income or disability benefits. The amount payable will depend on the individual's circumstances and the applicable program rules.

The exact calculation depends on the individual's circumstances and the applicable program rules. The key distinction is that income replacement during working years and retirement income support are not necessarily calculated in the same way.

4. Support for Serious and Permanent Injuries

Some car accident injuries heal completely, while others leave people with lasting physical or psychological limitations. A serious injury could permanently affect someone's ability to walk, work, communicate, or perform everyday activities. These injuries can create challenges that continue long after the initial medical treatment has ended.

Care-First includes additional benefits for people who experience permanent impairments, alongside ongoing medical treatment, personal care, and other eligible support. One of the most important additions is the permanent impairment benefit, which provides a one-time payment to eligible people with lasting injuries.

How Much Is the Permanent Impairment Benefit?

Unlike medical treatment benefits, which help pay for recovery and care, a permanent impairment benefit recognizes the lasting effects of an injury. The amount is determined through an assessment of the impairment and the applicable compensation rules.

The government's 2025 comparison identifies the following amounts:

A catastrophic impairment is an exceptionally serious injury or condition that meets specific assessment criteria. The amount payable is not determined simply by whether someone describes their injury as severe; it depends on the applicable classification and assessment process.

Example: Living With a Permanent Injury

Imagine someone suffers a severe leg injury in a collision. After surgery and two years of rehabilitation, they can return to some normal activities but are left with permanent mobility problems. They may no longer be able to perform the same physical work they did before the accident.

Under Care-First, this person could potentially receive several different benefits. Their eligible medical treatment could continue as needed, income replacement might help if their injury prevents them from working, and a permanent impairment payment could recognize the lasting effects of their condition.

These benefits serve different purposes. Medical coverage pays for eligible treatment, income replacement addresses lost earnings, and permanent impairment compensation recognizes a lasting injury. Receiving one benefit does not automatically guarantee eligibility for the others.

Other Expenses and Long-Term Support

People with serious injuries may also need special equipment, personal assistance, changes to their living environment, or support with expenses related to treatment and recovery. The Care-First framework includes provisions for eligible services, equipment, supplies, and accessibility-related support.

The government's 2025 comparison also lists several smaller benefits that may apply in particular circumstances:

Although these amounts are much smaller than the permanent impairment benefit, they recognize that a serious injury can create many different expenses. Each benefit has its own purpose and eligibility requirements, so not every injured person will qualify for every payment.

5. Death Benefits and Support for Surviving Families

When someone dies in a car accident, their family may face significant financial challenges alongside the emotional impact of losing a loved one. Funeral expenses, the loss of household income, and the ongoing cost of supporting children can place considerable pressure on surviving family members.

Care-First expands the death benefits available through Alberta's auto insurance system, including funeral expense reimbursement, payments to eligible surviving family members, and grief counselling.

Funeral Expenses

Under the existing system, the listed funeral benefit is $6,150. Care-First increases the maximum funeral benefit to $10,308 using the government's 2025 reference figures.

This benefit is intended to help eligible families with reasonable funeral and related expenses following a fatal collision.

Payments to Surviving Family Members

Care-First also provides payments to eligible spouses, partners, dependants, and certain other family members. The amount depends on factors such as the deceased person's income, the relationship to the deceased, and the age or circumstances of surviving dependants.

The spouse or partner benefit is tied to the deceased person's gross annual income, while payments for dependent children vary according to their age and the applicable rules. If someone dies leaving dependent children but no spouse or common-law partner, the children may also share the amount that otherwise would have been paid to the spouse, in addition to their individual dependant benefits.

Example: A Family Loses a Parent

Imagine a married parent with two young children dies in a car accident. The surviving spouse may suddenly be responsible for the household's expenses on a single income while also caring for the children.

Under Care-First, the spouse could qualify for a payment based on the deceased person's income, while each eligible child could receive a separate dependant benefit. The family may also qualify for funeral expense reimbursement and grief counselling.

The total amount would depend on the family's circumstances and the applicable rules. The maximum amounts shown in the government's comparison should not be interpreted as guaranteed payments.

Grief Counselling

Care-First also increases the amount available for eligible grief counselling. Under the existing system, the listed benefit is $500 per family. The government's 2025 comparison lists a maximum of $4,310 per person under Care-First.

This benefit is intended to help eligible surviving family members access professional support following a fatal collision.

6. How Will Care-First Affect Lawsuits, Fault, and Insurance Premiums?

Expanded accident benefits are only one part of Alberta's insurance reform. The other major change is a significant restriction on injury-related lawsuits. Under the current system, someone injured by another driver may be able to sue for additional compensation, including pain and suffering, lost income, and other damages. Under Care-First, most injury compensation will instead be provided through the insurance benefits system.

This creates an important trade-off. Injured people will generally have access to more extensive benefits without needing to establish that another driver caused the collision. However, most will also lose the ability to pursue the same types of compensation through the courts.

Can You Still Sue After an Accident?

There will be exceptions to the restrictions on lawsuits. Alberta's legislation provides for certain circumstances involving convictions for serious driving offences, as well as specified losses that exceed available insurance benefits. Additional exceptions may apply in certain circumstances involving out-of-province drivers or other legally responsible parties. The precise application depends on the legislation and regulations.

For example, a collision involving a driver convicted of certain serious offences may create legal options that would not be available following an ordinary negligent-driving accident. Because these exceptions are complicated and depend on the facts of the collision, someone considering legal action should obtain advice about their particular circumstances.

Does Fault Still Matter?

Yes. Care-First does not eliminate responsibility for causing accidents. Insurance companies will continue assessing fault, and drivers responsible for collisions may still face increased premiums. Traffic offences and criminal driving offences can also carry consequences separate from insurance benefits.

The key difference is that an injured person's eligibility for Care-First benefits will generally not depend on proving that another driver caused the collision.

Will Care-First Make Auto Insurance Cheaper?

One of the Alberta government's main goals is to make auto insurance more affordable and predictable. By reducing the number of injury-related lawsuits, the government expects to lower legal costs and redirect more money toward accident benefits.

However, expanded medical treatment and financial benefits also create costs for insurers. The long-term effect on premiums will depend on claims experience, insurer expenses, and the province's insurance rate rules.

For 2027, Alberta has announced an adjusted rate-cap system that limits average insurer rate increases to 5% and caps renewal increases at 10% for qualifying average drivers. Changes to vehicles, drivers, coverage, or driving records can affect eligibility.

Care-First does not guarantee that every Albertan's auto insurance premium will decrease.

7. What Should Alberta Drivers Do Before January 1, 2027?

Most Alberta drivers will not need to purchase a new auto insurance policy simply because Care-First is being introduced. The new injury benefit system is intended to apply to eligible collisions occurring on or after January 1, 2027, including when an existing policy renews later in the year.

However, the reform does not eliminate the importance of reviewing your coverage. Care-First primarily changes how injuries are handled, while vehicle damage protection, liability insurance, deductibles, and optional coverages will continue to matter.

For example, someone who causes an accident and damages their own vehicle will generally still need collision coverage to have their insurer pay for repairs to that vehicle, subject to the policy's terms.

An insurance broker can help explain how your existing coverage works and whether changes would make sense for your circumstances.

The Bottom Line: What Does Care-First Mean for Albertans?

Care-First represents a major change in how Alberta supports people injured in car accidents. Beginning January 1, 2027, eligible injured people will have access to expanded medical treatment, improved income replacement, additional financial support for permanent injuries, and increased death benefits for surviving families.

For many people, these changes could mean more predictable access to treatment and financial support without the expense and uncertainty of a lengthy lawsuit. However, the new system also significantly limits the ability to pursue compensation through the courts, meaning some injured people may receive different overall compensation than they would under the existing system.

The most important thing to understand is that Care-First changes both the benefits available after an accident and the legal options for recovering additional losses.

At Armour Insurance, we're committed to helping Albertans understand these changes, answer their questions, and make informed decisions about their coverage.

This article is based on the Government of Alberta's published Care-First reform information and 2025 accident-benefit comparison. Reference amounts are subject to applicable adjustments, eligibility requirements, legislation, and regulations. Last reviewed: October 2026.