What Types of Compensation Will I Receive Under No-Fault Insurance?

When Alberta introduces no-fault auto insurance on January 1, 2027, the way compensation works after a car accident will change significantly. Instead of suing the at-fault driver, you will claim benefits directly from your own insurance company. These benefits will be standardized and capped by law.

Core Benefits Available Under No-Fault

Under the new system, your insurer will provide:

• Medical and Rehabilitation Coverage
  • Treatment costs such as physiotherapy, chiropractic care, medications, and other necessary rehabilitation services.
  • Some long-term care support, depending on the severity of the injury.
• Income Replacement Benefits
  • Partial wage replacement if you are unable to work due to your injuries.
  • Benefits are capped at a percentage of your pre-accident income, subject to maximum limits set by the government.
• Catastrophic Injury Benefits
  • Enhanced benefits for those with permanent, life-changing injuries (such as traumatic brain injuries or paralysis).
  • May include higher levels of medical and attendant care support.

What You Will Not Receive Under No-Fault

Compared to Alberta’s current system, here’s what’s being eliminated:

• Pain and Suffering Damages → Compensation for loss of enjoyment of life or chronic pain will no longer be available.
• Full Future Income Loss → Long-term financial losses are not fully compensable; benefits stop at capped levels.
• Customized Settlements → Compensation will not reflect your unique circumstances; benefits are standardized and formula-driven.

How Does This Compare to the Current System?

• Current system (before 2027): Accident victims can sue for pain and suffering, full income loss, and other damages specific to their case.
• No-fault system (2027 onward): Victims receive fixed benefits only, regardless of fault or personal impact.

Why This Matters for Albertans

While no-fault guarantees some level of coverage, the trade-off is reduced overall compensation. For most accident victims, the benefits will be less than what could be recovered under today’s tort-based system.