New bill kicks off restructuring of Alberta auto insurance system

The Alberta government has tabled a new bill to kick off a two-year-long process of restructuring the province’s auto insurance system.

Bill 47, the Auto Insurance Act, will aim to implement the new system announced last fall to provide Albertans access to “better and faster access to care”.

Finance Minister Nate Horner says the bill will introduce private auto insurance that aims to improve access to care after a collision, while also restricting the ability to sue an ‘at fault’ driver for injuries.

The legislation restricts the ability to sue unless the driver at fault is convicted of a serious offence under the Criminal Code or Traffic Safety Act. Those wounded could also sue for out-of-pocket expenses if losses exceed what the insurance policy provides, such as lost income.

The new privately delivered care-first system, set to begin on Jan. 1, 2027, shifts focus from the courts and legal action to providing help for those affected. The idea is that this will lead to lower automobile insurance rates over time, as time and money spent on litigation is reduced.

“Albertans need to understand that everything is getting more expensive as while we build this, but we’re confident in the base case that this will provide savings,” says Horner.

Once in effect, the legislation will outline the rules on how insurers may recover costs if the complainant isn’t entitled to benefits.

The system will outline how residents can file a claim and require insurers to assist them when doing so, according to Horner. Insurers will also be required to pay in accordance with the regulations.

An independent Alberta Automobile Care-First Tribunal would be created for people to dispute or appeal care and treatment decisions made by their insurance company about their benefits.

Horner says there are still a lot of details to be worked out, but tabling the bill is the first step.

“That’s the way this process works, stand up the enabling legislation first, you continue to consult and get into the details,” he says. “A lot of that will rely on what’s been done in other provinces with are specific Alberta tweaks.”

Further regulations to implement these changes could be introduced in the fall of 2025.