Alberta’s President of the Treasury Board and Minister of Finance, Nate Horner, introduced new legislation to enhance access to care for Albertans involved in motor vehicle collisions. The proposed changes to the Automobile Insurance Act will prioritize health and recovery while working to lower insurance premiums across the province.
Minister Horner unveiled a new initiative, making Alberta the first province in Canada to implement a privately delivered “Care First Auto Insurance” system. The system is designed to provide timely access to medical treatment, rehabilitation, income support, and benefits for permanent impairments, regardless of who is at fault in an accident.
“Under this legislation, we are prioritizing the health and well-being of Albertans who are injured in accidents,” Horner said. “If passed, Alberta will become the first province in Canada to implement a privately delivered Care First Auto Insurance system, which will provide immediate care for those injured in collisions while also addressing the rising costs of auto insurance.”
A key feature of the proposed legislation is its focus on reducing the costs associated with auto insurance premiums, which have increased substantially in recent years. Reports indicate that collisions-related lawsuits grew by 48% from 2018 to 2022, contributing to litigation costs that exceeded $1.2 billion annually. Minister Horner explained that the new system aims to reduce the number of lawsuits and their associated costs, which have played a significant role in rising premiums.
“The system will still hold bad drivers accountable through higher premiums,” Horner explained. “However, we must find a balance between ensuring justice for those at fault and providing injured parties with the medical care and treatment they deserve without unnecessary delays or the high costs associated with lengthy legal proceedings.”
Dr. Jacqueline Boyd, Chair of the Chiropractic Association of Alberta, also voiced her approval of the legislation, highlighting the positive impact that will have on injured Albertans.
“As chiropractors, we see firsthand the physical, emotional, and financial toll that motor vehicle collisions can have on individuals and their families,” Dr. Boyd stated. “This legislation is a meaningful step forward in ensuring that injured Albertans receive timely, high-quality care, particularly for musculoskeletal injuries such as back pain and whiplash, which are among the most common injuries resulting from car accidents.”
Dr. Boyd also emphasized that integrating chiropractic care into the new insurance framework could reduce costs and improve recovery times for those injured in accidents.
Despite the shift towards a care-first model, Minister Horner assured the public that fault will still play a role in determining accountability. He noted that individuals who are at fault in accidents, particularly in cases involving criminal offenses like impaired or distracted driving, could still face legal consequences.
“There will still be scenarios in which individuals can sue an at-fault driver, especially in cases of severe negligence or criminal behavior,” Horner said. “However, we are working to ensure that the legal process is fair and that litigation does not unnecessarily prolong the recovery of those injured in accidents.”
The legislation also proposes the creation of a tribunal to help resolve disputes between insurers and claimants, ensuring quicker access to the care people need.
While the proposed legislation has been met with broad support, some have raised concerns about its potential effects on private insurance companies and overall insurance costs. Minister Horner acknowledged these concerns but stressed the long-term benefits of the legislation, which include more stable and affordable premiums for Albertans.
“We understand that there will be challenges as we transition to this new model, but we are confident that the Care First system will provide long-term savings for both insurers and consumers,” Horner said. “This is an Alberta-made solution that is focused on meeting the needs of our people, and we believe it will set a precedent for other provinces to follow.”
As the legislation moves through the approval process, the Alberta government is committed to continuing consultations with stakeholders to refine the details and ensure the system works effectively for all Albertans.
The Care First Auto Insurance system represents a significant change in the auto insurance landscape. By focusing on medical care and rehabilitation rather than litigation, the legislation aims to provide better access to treatment for those injured in accidents, reduce the financial burden of rising insurance costs, and create a more sustainable insurance framework for the province.