Alberta car insurance is changing in two stages. In 2026, renewal increases for eligible good drivers are capped at 7.5%. From January 1, 2027, Alberta moves to a Care-First model, where your own insurer handles injury claims no matter who caused the crash.
Premiums have climbed fast. The Applied Rating Index reported that average Alberta auto premiums rose 22.6% year over year in the second quarter of 2026. That index tracks quoted premiums, so your own change may be higher or lower. Here is what the rules mean for you and how to shop before and after the switch.
How does the 2026 good-driver rate cap work?
The cap limits how much your current insurer can raise your premium when you renew. For 2026, the limit is 7.5% for eligible good drivers. Drivers who don't qualify can see larger increases.
Eligibility rules matter. News reports on the 2026 cap say good drivers now also need no minor traffic convictions in the past three years, on top of the existing requirements. Ask your insurer or broker whether you qualified at your last renewal.
Keep these limits in mind:
- The cap applies to renewals. A new insurer's quote is generally its own price. Compare the full premium, not just the percentage change.
- Your own changes still count. Adding a driver, changing vehicles or moving can change your premium outside the cap.
- The cap is a ceiling, not a target. Some drivers see smaller increases, and some see none.
How can average premiums rise 22.6% when a 7.5% cap exists? The cap protects only eligible good drivers renewing with the same insurer. Quoted premiums also include new drivers, drivers with claims or convictions, and people shopping for a new policy.
Tip: Divide your new premium by last year's for the same coverage. If you believe you are a good driver and the increase is above 7.5%, ask your insurer to explain it in writing.
What is Care-First auto insurance?
Care-First is Alberta's new model for injury claims after a collision. It starts on January 1, 2027. The Government of Alberta explains the reform on its automobile insurance reform page.
Under Care-First:
- Your own insurer provides care and recovery benefits after an injury, regardless of fault.
- The focus shifts from lawsuits to treatment, rehabilitation and income support.
- The right to sue an at-fault driver for injuries becomes much more limited.
- A new adjustable rate cap replaces the good-driver cap.
News reports describe the new cap as limiting insurers' average rate increase, reported at 5%. They also report a limit on renewal increases for many individual drivers, reported at 10%. Final details are set by the province, so check official sources before relying on them.
Care-First is about injuries. Your choices on liability limits, collision and comprehensive coverage still matter for damage to vehicles and property.
| Topic | 2026 | From January 1, 2027 |
|---|---|---|
| Who handles injury claims | Your own accident benefits, plus claims against the at-fault driver. | Your own insurer, regardless of fault. |
| Suing for injuries | Available, with limits on minor injuries. | Much more limited. |
| Limits on rate increases | 7.5% cap for eligible good drivers. | A new adjustable cap, as reported. |
| Vehicle damage coverage | Liability, DCPD, collision and comprehensive. | Still important to choose carefully. |
Will Alberta car insurance get cheaper in 2027?
Possibly, but not for everyone. Media reports cite projected savings of about $366 per vehicle per year under Care-First. That is an average projection, not a promise.
Your premium will still depend on your driving record, vehicle, location and coverage. It will also depend on wider costs. Vehicle repairs are more expensive than they used to be, and hail claims are common in Alberta. Our guide on why car insurance is going up in 2026 explains these pressures.
A lower injury-claim cost does not lower every part of your premium. Collision and comprehensive are priced on vehicle damage. Those costs are driven by repair prices, theft and weather.
How should you shop for Alberta car insurance now?
You don't need to wait for 2027 to save. Use your next renewal to check the market.
- Compare your renewal with last year. Work out the percentage increase for the same coverage.
- Get several quotes. A broker can compare multiple insurers at once. Prices for the same driver can differ noticeably between insurers.
- Ask about the 2027 transition. If your policy renews in 2026 and runs into 2027, ask how Care-First will apply to it.
- Review your deductibles. A higher deductible lowers your premium. Only choose one you could pay after a claim.
- Keep comprehensive if hail is a risk. Hail damage to your car is a comprehensive claim. Our Calgary hail insurance guide explains how it works.
- Ask for every discount. Common ones include bundling home and auto, multiple vehicles, winter tires, telematics and a claims-free history.
- Check your liability limit. The legal minimum is $200,000. Ask what $1 million or $2 million would cost, since the difference is often modest.
Should you switch insurers before 2027?
Switching can save money, but check the details first. A new insurer's price is not limited by your old premium. Ask whether cancelling your current policy mid-term triggers a fee. Line up the new policy so it starts the same day the old one ends.
Tip: Don't let your policy lapse while you shop. Driving without insurance is illegal, and a gap in coverage can raise future premiums.
What if you are injured after January 1, 2027?
Report the collision to your insurer promptly, as your policy requires. Under Care-First, your benefits claim goes to your own insurer. Keep copies of medical records, receipts and correspondence. If you disagree with a decision, ask your insurer how to request a review, and consider independent advice.
What if you drive for work or an app?
Tell your insurer if you use your vehicle for business, rideshare or delivery. A personal policy may not cover that use. Ask what coverage applies before you start.
Next steps
Alberta car insurance prices vary widely by driver, so a personal estimate is more useful than any average. Get an instant car insurance estimate for a realistic price range. Then talk to a licensed advisor who can compare insurers and explain how the rate cap and Care-First apply to you.
You can also read about car insurance in Alberta, see other Alberta insurance changes, or compare coverage options.
This guide is general information. Your policy wording and a licensed advisor's advice apply to your own situation.