Alberta has introduced several auto insurance reforms to improve affordability and prepare for its new Care-First insurance system.
To explain these changes, our team reviewed the Government of Alberta’s automobile-insurance reform page, its Care-First implementation information and the Automobile Insurance Rate Board’s good-driver rate-cap information.
Read on to learn how Alberta’s insurance reforms work, who qualifies for the good-driver rate cap and what changes are coming under Care-First.
Read More: Alberta Auto Insurance Market: Potential Solutions
Overview of the Alberta Auto Insurance Reform
For drivers who meet Alberta’s good-driver criteria, the reforms place a cap on how much their car insurance rates can increase.
In 2024, the increase for an eligible good driver could not exceed the previous year’s inflation rate of 3.7%.
For 2026, the good-driver cap is 7.5%. This includes a 5% cap and a 2.5% rider for natural-disaster costs.
However, the cap only applies if you’re considered a good driver. For the 2025–2026 cap, an eligible driver must have:
- No more than one minor traffic conviction within the previous three years;
- No major traffic convictions within the previous three years;
- No traffic convictions under the Criminal Code within the previous four years; and
- No at-fault accidents within the previous six years.
The cap can make renewals more predictable, but it does not mean every driver’s total premium will follow it. Changes to your vehicle, address, drivers or coverage can still affect the price.
Payment-Plan Options
The reforms also required insurers to offer payment-plan options so Albertans can choose staggered payments.
Paying by instalments can help with cash flow, but fees or missed-payment consequences may apply. Compare the total annual cost and payment terms before choosing a payment plan.
Alberta Is Moving to Care-First Insurance
This is no longer only a proposal. Alberta has adopted a Care-First auto-insurance system scheduled to take effect on January 1, 2027.
The new system will provide increased medical, rehabilitation and income-support benefits to people injured in collisions. These benefits will be available regardless of who caused the accident.
Most lawsuits over collision injuries will be restricted, although some exceptions will remain. At-fault accidents can still affect car insurance rates.