Guide to No-Fault Insurance in Alberta

Effective date: January 1, 2027 • Last updated: September 9, 2025

If your accident occurs on or before December 31, 2026, the current system applies and you may still sue an at-fault driver.

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Introduction ¶

Alberta is making a significant change to its auto insurance system. Starting January 1, 2027, Alberta will move to a no-fault insurance model for motor vehicle accidents. This will affect how injury victims are compensated after a crash.

If you or a loved one is injured in a motor vehicle accident before the change takes effect, you may still have the right to sue for pain and suffering, lost income, and other damages. After 2026, these rights will be limited.

This guide explains what no-fault insurance is, how it will change your rights, and what you can do now to protect yourself.

What Is No-Fault Insurance? ¶

“No-fault” insurance means each driver’s own insurer covers medical expenses and income loss after an accident—regardless of who caused the crash.

Under Alberta’s current system, injured people can sue the at-fault driver for damages such as:

Pain and suffering
Lost future income
Out-of-pocket expenses
Long-term care costs

Under no-fault, these claims will largely disappear. Instead, you’ll receive set benefits determined by law and paid by your insurer.

Why Is Alberta Moving to No-Fault? ¶

The Alberta government has argued that no-fault insurance will:

Lower premiums for drivers
Speed up claims processing
Reduce lawsuits

However, critics point out that injury victims may lose the right to fair compensation and be left with less financial support—especially in serious-injury cases.

When Does the Change Happen? ¶

Through December 31, 2026: the current system applies; injured people can sue at-fault drivers and pursue full compensation.
January 1, 2027 onward: no-fault rules apply to new accidents.

Important: If your accident happens before 2027, you are still entitled to pursue a claim under the existing system—even if your case continues after the new law takes effect. Learn more:

What Compensation Will Be Available Under No-Fault? ¶

Under the no-fault model, your insurer will provide benefits such as:

Medical and rehabilitation treatment
Limited income-replacement benefits
Care costs for serious injuries

See: What types of compensation will I receive under no-fault insurance?

What’s changing:

Pain and suffering claims will be eliminated in most cases
Lawsuits for full compensation will generally no longer be possible (with narrow exceptions)
Settlement amounts will typically be smaller and capped by formula

See: Will my settlement be smaller under no-fault?

Can You Still Sue Under No-Fault? ¶

In most cases, no. The right to sue for pain and suffering, loss of enjoyment of life, or future income will be removed. Some exceptions may exist (for example, catastrophic injuries or insurer misconduct), but these will be rare.

This is a significant departure from Alberta’s current system, where lawsuits help ensure fair compensation for victims.

See: Will I still be able to sue after Alberta switches to no-fault insurance?

What This Means for Albertans Today (2025–2026) ¶

If you are injured in a collision before December 31, 2026:

You can still pursue a full personal injury claim.
You may be entitled to pain and suffering damages, loss of income, and other compensation.
Acting quickly helps preserve your rights before the deadline.

If you wait until after 2026, your options will be drastically reduced.

See also:

Free Consultation — No Upfront Fees

If you’ve been injured in an accident in Alberta, contact Kantor LLP today.

Call: (403) 930-8594

Frequently Asked Questions ¶

Will my insurance premiums go down under no-fault?

The government claims premiums will decrease, but in other provinces the results have been mixed. Many drivers see little to no reduction in cost.

What if I disagree with my insurer’s decision?

Under no-fault, disputes are handled through a government tribunal or arbitration process rather than the courts. This can limit how you challenge unfair outcomes.

Do I still need a lawyer under no-fault?

Yes. While the ability to sue is restricted, a lawyer can help with disputes, appeals, and ensuring you receive the benefits you’re entitled to.

How a Lawyer Can Help ¶

Until the law changes, a lawyer can:

File a personal injury claim on your behalf
Protect your right to full compensation
Handle insurers and medical documentation
Work to resolve your case fairly before 2027

After no-fault takes effect, lawyers will continue to assist with insurance disputes—but the scope of claims will be narrower.

Don’t wait until it’s too late. If you were injured in Alberta, call Jared Kantor at (403) 930-8594 for a free consultation.

Alberta’s move to no-fault insurance in 2027 is one of the most significant legal changes in decades. While the government promises lower premiums and faster claims, the reality is that injury victims will lose key rights. If you or someone you love is hurt in a motor vehicle accident, the time to act is now. The current system remains in place until the end of 2026—and you can still pursue the fair compensation you deserve.