care-first: the costs behind the promises (pipella law)
The UCP is marketing Care-First as an appealing reform to the automobile insurance industry in Alberta - lower premiums, faster claims, better care. But when you dig deeper, the truth becomes clear: this plan comes with serious risks to your rights, your safety, and your ability to get fair treatment after a crash. A recent article by the highly-respected Pipella Law firm identifies several key concerns with the proposed system, and what we can learn from other jurisdictions who have already made this mistake.
Premium “Savings” that Don’t Add Up: the government claims you could save up to $400 per year by 2027. But starting in 2025, they’ve already approved a 7.5% rate hike — even for good drivers. You’ll be paying more now, with no guarantee of future savings. And if insurance companies deny care or close claims early, the burden will shift to Alberta’s public healthcare system and employers, not insurers. Worse, experience from the U.S. shows that states with pure no-fault systems — like Michigan, Florida, and New York — have some of the highest auto premiums in the country.
Less Accountability, More Collisions: no-fault systems are marketed as efficient, but they also remove consequences for bad driving. After B.C. adopted no-fault, collisions spiked by 15%. In Quebec, fatalities rose by 6.7%, and injuries by over 26%. When drivers aren’t held accountable, public safety suffers.
Your Right to Sue? Gutted: under the current system, injured Albertans can sue for pain and suffering, lost wages, and future care when someone else causes harm. Care First takes that away. You’ll only be allowed to sue in extreme cases of criminal negligence or if your costs exceed strict policy limits — an incredibly high bar for most victims. That means no meaningful way to challenge unfair decisions by insurers. You’ll be at the mercy of internal policies and government-set rates, not judges or juries. In B.C., this shift led to smaller payouts, less care, and vulnerable groups like part-time workers, students, and people with pre-existing conditions getting even less support.
Who Really Pays the Price: the people who suffer most under Care First will be those who are already vulnerable — people with severe injuries, those with limited income, and families who can’t afford to fight back. Insurers will control the care you receive, and without legal oversight, there’s no guarantee it’ll be enough. B.C.’s no-fault model shows the dangers: victims silenced, courts sidelined, and families left with unanswered questions and unpaid bills.
THE BOTTOM LINE: this isn’t reform, it’s a retreat. Albertans deserve a system that’s fair, transparent, and accountable — not one that sacrifices justice for insurance company convenience. If the goal is real affordability, it must not come at the cost of our dignity, safety, or legal rights. Your voice matters. Before this system is locked in, stand up and demand insurance reform that protects people—not profits.
Read the full article at Pipella Law here: https://pipellalaw.com/albertas-new-auto-insurance-system-a-closer-look-at-the-costs-behind-the-promises/