Introduction
The Alberta UCP government intends to change the province’s auto insurance system to no-fault auto insurance by January 2027. The government claims your insurance premiums will cost less. They also call it a care-first system. But the government’s marketing jargon won’t help you if Alberta goes ahead with no-fault insurance and you are injured. Let’s look at the facts to see how no-fault insurance will impact you.
Albertans Don’t Want No-Fault Insurance
Independent polls have shown that most Albertans oppose the government’s plans. A 2024 poll by Alberta’s Janet Brown Opinion Research revealed that a large majority of Albertans wanted to keep the current system. They did not support the UCP government removing their right to sue at-fault drivers. The UCP government went ahead anyway. A new 2025 Nanos poll backs up the earlier poll:
- 75% of Albertans view the right to sue as important
- 82% support holding people whose actions cause injury or harm to be legally and financially responsible for those actions.
The government is ignoring the apparent wishes of Albertans.
Let’s look at the evidence.
Higher Insurance Premiums
Insurance companies will be allowed to increase the premiums they charge for the next 2 years. Nonetheless, the Alberta government claims your insurance premiums could go down by about 20% once no-fault insurance is in place. That claim is not backed up by evidence from other jurisdictions with no-fault insurance. In fact, insurance companies in Alberta have been fined $3.1 million since 2022 for excessive charges on premiums, improperly handling claims, and other violations.
Most Albertans are rightfully skeptical of the government’s claim that premiums will go down. The same 2025 Nanos poll found that just 19% of Albertans think that auto insurance premiums will go down under a no-fault system.
In sum, we know premiums will go up for the next 2 years. There is scant evidence they will later go down. The most likely outcomes if the Government of Alberta persists in its plans are higher insurance premiums and bigger insurance company profits. In fact, the 2023 Janice Brown poll found that 75% of Albertans think it’s actually insurance profits that should be regulated.
Less Compensation for Your Injuries
Insurance companies make more profits by paying less for claims. The Alberta government is asking you to place your trust in its statistical modelling of compensation for injuries. That valuation will be determined by the provincial government in consultation with the insurance industry. Essentially, your injury and its short and long-term emotional and financial cost to you and your family will be a statistic spit out by the government’s formula. What could possibly go wrong?
It is a win-win for the insurance companies (standardized, lower, more predictable claim payments) and the government (lower court costs). The only one to lose will be you, the Alberta citizen.
Loss of Your Legal Right to Sue
Under the new no-fault system, if you are injured in a motor vehicle accident, you will no longer be able to sue the at-fault driver unless that driver is found guilty of a serious criminal offence. Exceptions later may be made for catastrophic accidents, although that is yet to be determined.
The reality is that you will lose not just the right to sue but also the legal protection injury lawyers currently offer.
- Experienced injury lawyers know how to evaluate your claim and whether the insurance company is offering fair compensation.
- We protect your legal rights, negotiate with the insurance company, and, if necessary, represent you in court.
- We refer you to medical experts to prepare your case for trial or settlement without trial and carry the costs of handling your claim, including the expense of any personal injury experts required to prove your claim.
- We don’t get paid unless you win your claim.
Under no-fault insurance, Albertans will have to fend for themselves against the large insurance companies and the government bureaucracy that decides what benefits they deserve for their injuries.
Insurance Companies Will Not Be Held Accountable
Currently, Alberta injury lawyers also help to make sure that insurance companies are held accountable. As I often say, “If the insurance company treated you fairly, I would not have a job.” Under no-fault insurance, the insurance company will simply follow government guidelines and apply algorithms to decide what your injuries are worth.
What happens if the compensation you are awarded does not meet your needs? What if you have to pay for items like required medical treatments out of your own pocket?
- Remember, you can only sue the at-fault driver if the driver was convicted of a criminal offence.
- If you challenge the insurance company’s decision, you are on your own. The insurance company can afford the cost of hiring physicians as paid advocates to justify their compensation offer. Very few Albertans can afford those costs.
Disproportionate Impact Based on Your Income
If you are wealthy and your injury is not catastrophic, you may be able to shoulder the additional hit to your finances. If you are not wealthy, you will be less able to absorb that hit.
Injury victims who are poorer citizens will rely more on public healthcare and social assistance programs for help. Youth, who are more often involved in motor vehicle accidents and already struggle disproportionately in our economy, will suffer a similar fate. The increased burden on Alberta’s healthcare and assistance programs will increase costs for all taxpayers.
Instead of negligent drivers being held responsible for causing injuries and insurance companies being held accountable when they low-ball compensation offers, the UCP’s no-fault insurance will shift the costs to taxpayers.
What Can You Do if You Oppose the UCP’s No-Fault Insurance?
- Talk with your friends and neighbours and let them know how you feel.
- Phone or email your local MLA and tell them you are against no-fault insurance.
- Phone or email the Premier.
- Sign the Albertans against No-Fault Insurance petition on Change.org
- On Facebook, follow FAIR Alberta, a coalition of concerned consumers, medical professionals, lawyers, and other Albertans that is opposed to Alberta’s move to no-fault insurance.
You may want to consider a donation to the Alberta Civil Trial Lawyers Association to assist in this fight.
