When Does No-Fault Insurance Start in Alberta?

Alberta’s government has announced that the province will officially move to a no-fault auto insurance system on January 1, 2027. This change will affect every driver and passenger involved in a motor vehicle accident after that date.

Key Dates You Need to Know

• Now through December 31, 2026:
  • Alberta’s current tort-based system remains in place.
  • Accident victims can still sue the at-fault driver for pain and suffering, lost income, and other damages.
  • Any claim filed during this period will continue under the old rules, even if it’s resolved after 2027.
• From January 1, 2027 onward:
  • All new accidents fall under the no-fault system.
  • Injury victims will claim benefits directly from their own insurer, regardless of fault.
  • The right to sue for pain and suffering or future income loss will be eliminated in most cases.

Why This Timeline Matters

As of August 2025, there are only about 16 months left before no-fault takes effect. This limited window is critical for anyone injured in a motor vehicle accident who wants to preserve their right to pursue full compensation.

What Happens If You’re Injured Before 2027?

• Your accident and claim will be handled under the current system.
• You may still be entitled to:
  • Pain and suffering damages
  • Lost wages and future income loss
  • Out-of-pocket expenses
  • Rehabilitation and long-term care costs

Even if your case extends beyond 2027, it will remain governed by the system in place at the time of your accident.

What Happens If You’re Injured After 2026?

• Your claim will fall under the new no-fault model.
• Benefits will be pre-set and limited.
• The ability to sue the at-fault driver will generally not exist.