Alberta has announced the latest changes to its new auto insurance system, which now includes how much Albertans will be paid out in accidents. Read More
Alberta has announced the latest changes to its new auto insurance system, which now includes how much Albertans will be paid out in accidents. The province passed the Automobile Insurance Act, which will overhaul the current auto insurance model in favour of what the province is calling a “care-first” auto insurance system, in May. On
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Alberta has announced the latest changes to its new auto insurance system, which now includes how much Albertans will be paid out in accidents.
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The province passed the Automobile Insurance Act, which will overhaul the current auto insurance model in favour of what the province is calling a “care-first” auto insurance system, in May.
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On Wednesday, the government put out an intentions paper outlining the development of the model, including the monetary value Albertans would be paid if they were involved in a motor vehicle accident, updates on a dispute tribunal and the limited cases when Albertans will be able to pursue legal action.
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Postmedia attended a technical briefing with government officials on Wednesday. Here’s a breakdown of what the latest updates will be for the new system set to launch on Jan. 1, 2027.
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How much will Albertans receive for recovery related to accidents?
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Under the “Care-First” model, there will be two categories of benefits: income replacement benefits and recovery benefits.
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According to the province, initial benefits under the new system will be set at Manitoba levels, except for the income replacement benefit, which will be based on annual income and is $5,000 higher than Manitoba to reflect Alberta’s higher average income. After the implementation of the new system, benefits will be indexed annually for inflation.
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“Under the Care-First system, all injured parties in an accident involving a motor vehicle with an auto insurance policy will have access to the medical and rehabilitation they require, including cyclists and pedestrians regardless of whether they have insurance coverage,” says the document.
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Medical and rehabilitation benefits will be “unlimited for all reasonable and necessary expenses” until maximum medical recovery. If personal care is needed, the payout would be $6,781 per month for catastrophic injuries and $5,671 per month for non-catastrophic injuries.
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Those who have a permanent impairment, depending on the injury, could receive a lump-sum payment of up to $298,520 for catastrophic injuries and up to $189,055 for non-catastrophic injuries.
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If someone dies as a result of an accident, a maximum of $10,308 could be paid out for the cost of the funeral and up to $4,310 per person for grief counselling. Payments could also be made to spouses or dependants.
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How much would Albertans receive for income replacements?
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Under the new model, coverage would include income replacement of up to 90 per cent of net income up to the maximum annual gross income of $125,000 until age 65.