Will My Auto Insurance Premiums Go Down With No-Fault?
The Government’s Position
- The government has stated that no-fault will:
- Lower overall premiums
- Make pricing more predictable for drivers
- Reduce the cost of lengthy lawsuits
The promise is that savings from eliminating most lawsuits will be passed on to consumers.
What Other Provinces Have Experienced
- Ontario: Introduced partial no-fault. While lawsuits dropped, insurance premiums remain among the highest in Canada.
- Saskatchewan & Manitoba: Public no-fault systems provide stability, but drivers still pay higher-than-expected premiums compared to what was originally promised.
- BC: After moving to no-fault, some drivers saw modest reductions, but long-term costs have continued to rise due to inflation and insurer expenses.
The takeaway: No-fault may stabilize insurance rates, but deep or lasting premium cuts are far from guaranteed.
Why Premiums Might Not Decrease as Promised
- Insurer costs: Insurance companies still manage medical, rehab, and income replacement benefits, which can be expensive.
- Inflation: Medical care and vehicle repair costs continue to rise.
- Profit margins: There’s no guarantee that insurers will pass savings from fewer lawsuits directly on to consumers.
What This Means for Albertans
- Some drivers may see a short-term reduction in premiums when no-fault is introduced.
- Over time, costs could creep back up, as has been seen in other provinces.
- The biggest impact of no-fault will be felt not in premiums but in the reduced rights of accident victims, not necessarily in dramatically lower costs.
Key Takeaway:
While Alberta’s government promises lower auto insurance premiums under no-fault, experience in other provinces shows that any savings may be modest and temporary. What’s certain is that accident victims will lose significant rights to sue for full compensation.
Filed Under
No-Fault Auto Insurance in Alberta 2027