What If I Disagree With My Insurance Company’s Decision Under No-Fault?

Under Alberta’s new no-fault auto insurance system (beginning January 1, 2027), all accident victims will deal directly with their own insurance company for benefits. But what happens if you feel your insurer is being unfair — for example, by denying treatment, cutting off benefits, or undervaluing your claim?

How Disputes Work Under the Current System

• Before 2027:
  • If you disagree with an insurer or the at-fault driver, you have the right to take your case to court.
  • Courts can award damages beyond what the insurer offers, ensuring victims receive fair compensation.
  • This legal route is a critical check on insurance company decisions.

How Disputes Will Work Under No-Fault

• After 2027:
  • Lawsuits against at-fault drivers will be eliminated in most cases.
  • If you disagree with your insurer’s decision, your options will be limited to:
    • A dispute resolution tribunal or arbitration process
    • Government-appointed appeal bodies
  • The courts will no longer play a central role in most accident compensation disputes.

Why This Matters

• Less power for victims: Without the threat of a lawsuit, insurers have less incentive to settle fairly.
• Fewer options to challenge unfair treatment: Your recourse will be restricted to administrative processes, which may feel less independent than the courts.
• Potential delays: While the government says tribunals will speed up resolution, experience in other provinces shows backlogs can still occur.

Will Lawyers Still Help?

Yes. Even though lawsuits will be rare, lawyers can:

• Represent you in arbitration or tribunal hearings
• Ensure your medical and income replacement benefits are maximized
• Hold insurers accountable if they act in bad faith (rare exceptions may still allow for court action)

Key Takeaway:
If you disagree with your insurer under Alberta’s no-fault system, you will not be able to sue in court in most cases. Instead, disputes will go through tribunals or arbitration. While lawyers can still help in these processes, your options — and leverage — will be far more limited than under the current system.