Lawyers say severe storms, not rising injuries, drive claim surge behind Alberta's no-fault insurance plan
Data from the Alberta Auto Insurance Rate Board show that a 2024 hailstorm, not increasing injury costs, caused a temporary rise in claims, challenging the government’s justification for the upcoming no-fault Care-First system.
Recent figures from the Alberta Auto Insurance Rate Board reveal that claim expenses across all coverages dropped from $1,825 to $1,398 between 2024 and 2025, contradicting the United Conservative Party’s narrative that rising injury costs are driving up premiums. The 2024 increase was largely attributed to a severe hailstorm in Calgary that caused billions in damage. The Alberta Civil Trial Lawyers Association contends that the data weaken the government’s rationale for adopting the no-fault Care-First system, which would restrict injured drivers’ right to pursue court actions.
Lawyers warn the reform could shift protection toward insurers while premiums continue to rise. The provincial finance ministry says the change, slated for Jan. 1, will deliver lower premiums and faster claims processing. The debate continues over whether the policy will truly benefit Albertans or primarily serve insurance companies.
Why it matters
The dispute questions whether Alberta's new auto-insurance model will lower costs or erode motorists' legal rights.
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