Drivers in Camrose may see a reduction in their insurance bills starting next year under a new provincial auto insurance system. The Alberta government reports that the upcoming care-first model could save the average driver up to $366 per year on basic coverage when it takes effect on January 1, 2027.
The projections come from an independent report commissioned by the Automobile Insurance Rate Board and prepared by the actuarial firm Oliver Wyman. This new system, established under the Automobile Insurance Act, is designed to shift away from the current court-based model that relies on legal action for injury compensation.
Under the new rules, the ability to sue will be limited to specific instances where an at-fault driver is convicted of serious Criminal Code offences, such as drunk driving or dangerous operation of a vehicle. The government notes that legal costs currently make up nearly 33 percent of all claim costs in the province. By moving to a defined benefits system, officials aim to reduce these expenses and increase the money available for direct support.
For those injured in a collision, the new system offers unlimited medical coverage for life, compared to the current $50,000 cap. It also provides income replacement up to $125,000 per year and increased financial support in the event of a fatal accident. While passenger and commercial vehicle drivers are expected to see savings, the report indicates that motorcyclists may face premium increases.
This shift follows a period of rising costs for Albertans, with average insurance premiums climbing 57 percent over the last decade to reach $1,835 in the first half of 2025. During that time, insurers faced significant financial challenges, reporting a $1.2 billion loss in 2024. As the province prepares for the transition, the Insurance Bureau of Canada has expressed support for the reform, while some legal advocates have raised questions regarding the accuracy of the projected savings and the future administration of benefits.
