The Alberta government is planning on making changes to auto insurance in the province.
On November 21, the provincial government announced they are introducing a privately delivered, care-focused auto insurance system after hearing from over 16,000 Albertans.
As part of those changes, those Albertans who suffer catastrophic injuries due to a collision will receive treatment and care for the rest of their lives, and those who sustain serious injuries will receive treatment until they are fully recovered.
On top of that, changes will be made to mirror and build upon the insurance model they use in Saskatchewan, and drivers who are at fault can be sued for pain and suffering damages if they are found guilty of a criminal offence, such as impaired or dangerous driving, or conviction of certain offences under the Traffic Safety Act.
In order to reconfigure auto insurance policies for the 3.4 million Albertans, the government is giving insurance companies time to create and implement the new system, with the system to be fully implemented by January 2027.
In the meantime, starting in January 2025, they will be adjusting the good driver cap to a 7.5 per cent increase due to the high legal costs, increasing vehicle damage repair costs, and natural disaster costs, which they are hoping will protect good drivers from large rate increases while making sure auto insurance providers remain financially viable.
Bad drivers, though, will continue to pay higher premiums than good drivers with these changes.
The Alberta government is saying there will also be $400 per year in cost savings for Albertans under this new system.
"We’re ensuring Albertans will save money on their auto insurance when the new Care-First system is implemented, and we want to provide them with the information they need on how their benefits are going to be increased and delivered faster," said the President of Treasury Board and Minister of Finance, Nate Horner in a media release.
While the changes to auto insurance are happening, the provincial government has launched a website that will help to keep people informed as they shift to the new Care-First system.
On the website, they explain how the new auto insurance system will be providing increased medical and quicker income support benefits which can be found here.
To read about the report on the auto insurance changes in Alberta, click here.