Will I Still Be Able to Sue After Alberta Switches to No-Fault Insurance?

In most cases, the answer is no. Once Alberta adopts a no-fault auto insurance system on January 1, 2027, the right to sue the at-fault driver for damages will be eliminated in the vast majority of accident cases.

How the Current System Works (Before 2027)

• Accident victims can file a lawsuit against the at-fault driver.
• Claims may include:
  • Pain and suffering damages
  • Lost income and reduced earning capacity
  • Medical and rehabilitation costs
  • Long-term care needs
• Courts and negotiations determine settlement amounts based on the specific facts of the case.

How the No-Fault System Changes Things

• Each driver will claim benefits from their own insurance company, regardless of fault.
• Benefits will be pre-set and capped by law.
• Pain and suffering claims will be eliminated for most injuries.
• The right to sue for future losses or reduced quality of life will be removed.

Are There Any Exceptions?

Some limited circumstances may still allow lawsuits under no-fault, such as:

• Catastrophic injuries (depending on how the final legislation is drafted)
• Bad faith conduct by an insurer (e.g., unfair denial of benefits)

These exceptions will be rare and much narrower than the rights available under the current system.

Why This Matters for Accident Victims

For Albertans, the switch to no-fault means:

• Far fewer legal options after a crash.
• Dependence on your insurer for all benefits.
• Lower overall compensation compared to today’s system.

As of August 2025, you still have until December 31, 2026 to file a claim under the current system — one that still allows you to sue for full and fair compensation.