Albertans are one month from Care-First auto insurance savings

New system will save drivers $300 on average, with young drivers set to save even more

EDMONTON, AB, Oct. 2, 2026 /CNW/ -- Alberta drivers will get their first look at Care-First savings beginning November 1, as insurers issue renewal notices for policies taking effect January 1, 2027. Those notices will show average savings of $300 under the new system. For young drivers, average savings will be even higher.

"Auto insurance premiums have been on the rise for years in Alberta, but that trend comes to an end with the introduction of Care-First," said Aaron Sutherland, Vice-President, Pacific and Western, Insurance Bureau of Canada (IBC). "By expanding benefits for those injured in collisions and striking a new balance for lawsuits following claims, the Alberta government's new system will dramatically improve affordability for drivers at a time when it is desperately needed."

A new analysis from the province's Automobile Insurance Rate Board (AIRB) – the government regulator that oversees insurance rates in the province – found that while savings for drivers will average $300, young drivers stand to see the greatest reduction in premiums under Care-First. In its analysis of insurers' rate filings, the AIRB found that young males will save an average of $3,094, or 30%, while young females will see premiums decreased by 27.6%, a reduction of nearly $2,500.

"In its analysis, the AIRB notes that under the current system, young drivers and families with young drivers have paid higher premiums due to the higher risk of lawsuits among those drivers," said Sutherland. "The AIRB's analysis makes clear that by removing legal costs and putting those dollars toward better care and benefits, Care-First will deliver its largest affordability gains to young drivers and families whose policies cover young drivers."

Care-First will replace Alberta's current court-based auto insurance model with a system focused on care, recovery and affordability. By reducing reliance on litigation and removing significant legal costs from the system, Care-First will help deliver meaningful savings for drivers and ensure that those injured in collisions will have access to expanded medical, rehabilitation and income-support benefits.

"Care-First was designed to put Albertans first by making auto insurance more affordable and sustainable, while at the same time providing the best care and benefits in Canada," added Sutherland. "For young drivers, lower premiums can make a real difference – helping them get to work, school and the activities that matter to them, while ensuring more of the system's dollars go to support the recovery of those injured in collisions rather than legal costs."

The projected premium impacts of Care-First are averages for each vehicle class. Individual premiums will vary depending on factors such as driving record, location, vehicle model and coverage choices. To learn more about how Care-First will impact different classes of vehicles, visit BetterAutoAlberta.ca. If you have questions, speak to your insurance representative. 

About Insurance Bureau of Canada

Established in 1964, Insurance Bureau of Canada (IBC) is the national industry association representing Canada's private home, auto and business insurers. Its member companies make up the vast majority of Canada's highly competitive property and casualty (P&C) insurance market.

As the leading advocate for Canada's private P&C insurers, IBC collaborates with governments, regulators and stakeholders to support a competitive environment for the P&C insurance industry to continue to help protect Canadians from the risks of today and tomorrow.

IBC believes that Canadians value and deserve a responsive and resilient private P&C insurance industry that provides insurance solutions to both individuals and businesses.

For media releases, IN Focus articles or to book an interview with an IBC representative, visit ibc.ca. Follow us on LinkedIn, X and Instagram, and like us on Facebook. If you have a question about home, auto or business insurance, contact IBC's Consumer Information Centre at 1‑844‑2ask-IBC. We're here to help.

SOURCE Insurance Bureau of Canada

Media contact: Brett Weltman, Manager, Media Relations, [email protected]