A recent survey indicates that most Albertans expect the province’s Care-First auto insurance reforms to lower premiums, but industry experts caution that savings may not materialize unless key policy restrictions are lifted.
The Yorkville Strategies poll found that 52% of Albertans say reducing premiums is the top priority under the new system, rising to 63% among United Conservative Party supporters. In contrast, only 19% prioritized improved care and benefits for collision victims.
“Albertans are clear they want significant savings,” said Aaron Sutherland of the Insurance Bureau of Canada, which commissioned the survey. He added that affordability depends on eliminating lawsuits, adopting best practices from other provinces, and restoring a competitive market—factors he says are hampered by the province’s current rate cap.
The Care-First model, first introduced in 2024, was designed to mirror Manitoba’s system but has since been modified to allow the right to sue and provide the highest recovery benefits in the country. Consultants at MNP warned these changes could increase premiums by up to $136 per driver annually.
The survey also revealed that 63% of Albertans experienced higher premiums over the past three years despite the provincial freeze. While 54% cited rising vehicle repair costs and 52% pointed to inflation, more than half also accused insurers of inflating profits. Regulators countered that in 2024, companies lost 20 cents for every dollar in premiums sold due to the cap.
Insurers warn that the rate cap is driving companies to exit Alberta or limit sales, making coverage harder to secure. Sutherland noted that rising costs—from inflation to extreme weather—combined with political restrictions, have created market turmoil, leaving many Albertans struggling to obtain insurance.
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