Alberta drivers could soon be saving more than expected on auto insurance
Alberta drivers could soon be paying less for auto insurance under the province’s new Care-First system, with drivers now expected to save more than previously estimated.
According to the Insurance Bureau of Canada (IBC), new reports from Alberta’s Automobile Insurance Rate Board (AIRB) found that the average driver is expected to see premiums drop by 13.7 per cent under the new system.
The latest estimate means drivers could save an average of about $297 per vehicle each year. In March, the government estimated that drivers would only save $259.
Young drivers and families with young drivers are expected to see some of the biggest savings under Care-First, with the AIRB projecting a $3,094 — or 30 per cent — reduction for its young male rating profile.
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Middle-aged drivers are also expected to save, with both male and female driver profiles projected to save roughly $525, or around 14 per cent.
Seniors are expected to see even more savings, with premiums projected to decrease by roughly 20 per cent as drivers move from middle-aged to senior profiles.
“This updated analysis confirms that Care-First will deliver meaningful savings for Alberta drivers at a time when they need it most,” said Aaron Sutherland, vice-president, Pacific and Western, at IBC, in a release.
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Care-First is set to replace Alberta’s current Good Driver Rate Cap when it takes effect on Jan. 1, 2027.
Under the new system, insurers will not be able to increase rates by more than five per cent across their overall customer base, while individual premiums for average drivers will be capped at a 10 per cent increase at renewal.
“This new analysis shows that the government has succeeded in its goal of putting improved affordability for drivers and expanded care and benefits for those injured at the centre of its work in designing Care-First,” said Sutherland.
Are you looking forward to the Care-First system coming into effect in Alberta on New Year’s Day 2027? Let us know in the comments.