Alberta's proposed no-fault insurance shift will raise average premiums to $2,000
MP
Milo Prescott
HSA eligibility IRS ruling · Apr 8, 2026
Source: DojiDoji Data Terminal
The average auto insurance premium in Alberta will exceed $2,000 per year under a proposed shift to a no-fault insurance system. This projection comes from a report by the Automobile Insurance Rate Board.
Finance Minister Nate Horner announced the plan in November 2024, proposing a change to the current system where injured drivers can seek compensation from a negligent motorist's insurance company for pain and suffering and other losses. The proposed no-fault scheme, starting in 2027, removes those rights.
Average premiums in the five provinces that currently operate under tort law systems are lower than the projected $2,000 premium for Albertans. Premiums are also lower in Manitoba, Saskatchewan, and British Columbia, where auto insurance is delivered by a non-profit government entity.
Alberta drivers will pay more for a product that removes their right to sue for damages.