Alberta drivers are bracing for another round of auto insurance premium hikes as the province moves toward adopting a no-fault private insurance model, the Calgary Herald reported.
The Automobile Insurance Rate Board (AIRB) has confirmed that rate increases of up to 7.5% will take effect by July.
According to a 2025 AIRB report, Alberta drivers paid an average annual premium of $1,703 in the first half of 2024, among the highest in Canada. The province is one of only two in the country, along with Newfoundland and Labrador, that has yet to implement a no-fault insurance model, which is designed to reduce legal costs and expedite claims by limiting lawsuits.
Under the proposed model, which is expected to take effect in 2027, Alberta will retain its private insurance system, meaning drivers will continue purchasing coverage from private insurers rather than a government-run provider. This differs from systems in British Columbia, Saskatchewan, and Manitoba, where public insurers oversee basic coverage.
“Care-based systems seek to achieve lower premiums or improved benefits by pulling legal costs out of the system and using those savings to expand the benefits you receive,” said Aaron Sutherland, vice president at the Insurance Bureau of Canada (IBC). “The goal is to reduce the need for legal recourse in the first place.”
Supporters of the private model, including Insurance Brokers Association of Alberta president Caleb Maksymchuk, argued that competition will help lower costs.
“You’ll have the doubling effect of a care-first program that removes costs from the system, combined with a privately delivered system that should enhance competition and drive premiums lower,” Maksymchuk said.
Alberta’s planned changes are expected to blend aspects of Saskatchewan’s and Manitoba’s models while maintaining a competitive private market. However, details on the level of legal recourse allowed remain unclear and are expected to be outlined in legislation this spring.
Saskatchewan, which first introduced no-fault insurance in 1946, allows drivers to opt out of the system and choose tort coverage, which permits legal action for damages beyond standard benefits. Meanwhile, Manitoba’s system provides up to $115,000 in insurable earnings, with no overall cap on personal injury care but defined limits for specific entitlements.
For many Albertans, the priority remains affordability. Maksymchuk noted a growing number of drivers seeking ways to cut costs, with few focused on coverage specifics. “No one’s really looking for any specific coverages,” he said. “They just want to save from higher premiums.”
