Alberta’s new auto insurance system starts January 1, 2027, and there’s a lot of confusion about it. Eight common myths, and what the province actually says.
November 6, 20262 min read
By Zainab Adesola, BSW, MA, CCC
Myth: Care-First only covers physical injuries
Fact: Care-First covers mental health conditions related to the collision. The province lists psychologist care alongside physiotherapy and chiropractic care as treatment that can be covered when it supports recovery.
Myth: Treatment is capped, like it is now
Fact: Under Care-First, treatment has no overall dollar cap. It continues as long as it contributes to your recovery. Under the current system, medical and rehabilitation benefits for serious injuries stop at $50,000 within two years.
Myth: If it wasn’t my fault, I claim from the other driver
Fact: Under Care-First, you claim injury benefits from your own insurer, whoever caused the collision. Fault still matters, though: at-fault drivers can expect higher premiums.
Myth: My policy renewal date decides which system applies
Fact: The date of the collision decides. Injuries from collisions on or after January 1, 2027 fall under Care-First. Earlier collisions stay in the current system.
Myth: I can’t sue anyone anymore
Fact: Most claims are handled without going to court, but you can still sue in some cases, such as when the at-fault driver is found guilty of certain serious driving offences, or for some costs auto insurance doesn’t cover.
Myth: If my insurer says no, there’s nothing I can do
Fact: Care-First has its own dispute resolution process. Start by asking your insurer to explain the decision in writing.
Myth: I have to finish physical treatment before getting mental health care
Fact: Mental health care goes through its own request, which can be sent at any point in your recovery. Physical care and therapy can happen at the same time.
Myth: Income support is the same as before
Fact: Care-First includes income replacement for people who can’t work because of their injuries. The province describes it as up to $125,000 a year until retirement, compared with about $600 a week for up to two years under the current system.
Still have questions?
Read Care-First and your mental health, see our Care-First page, or book a free 15-minute call.
Sources
This article is general information, not medical, legal or insurance advice. For advice about your situation, talk to your health care provider, your insurer or a lawyer.
Questions
Quick answers.
Is Care-First a no-fault system?
People often call it that, because you claim from your own insurer whoever was at fault. But fault still affects premiums, and lawsuits are still possible in limited cases.
Does Care-First cover therapy if I wasn’t physically injured?
Care-First benefits include mental health conditions related to the collision. Your insurer decides each claim, so talk to us and we’ll help you with the next step.
Where can I read the official details?
The Government of Alberta’s Care-First pages are the best source, and your insurer can explain how the rules apply to your claim.
Keep Reading
Related articles.
Care-First & your mental health: what changes on January 1, 2027Alberta’s new auto insurance system starts January 1, 2027. Here’s how mental health care fits, how it gets approved, and how to start.
What happens after you report a collision under Care-FirstFrom January 1, 2027, injured Albertans claim through their own insurer. What to expect after you report a collision, step by step, and where mental health care fits.
The CF-MH-1 form, explained: how mental health care gets approvedUnder Care-First, psychological care starts with a form called CF-MH-1. What’s on it, how your insurer decides, and how to help it go smoothly.