Survey finds Albertans want government to deliver lower premiums under Care-First auto insurance system

IBC warns potential for any savings in jeopardy unless rate cap lifted immediately and litigation eliminated from new model

EDMONTON, AB, Aug. 27, 2025 /CNW/ – Most Albertans want upcoming government reforms to lower auto insurance premiums, according to a new survey released today by Yorkville Strategies.

When asked which feature of Alberta’s new Care-First auto insurance model mattered most, 52% of respondents expect lower auto insurance prices — a figure that climbed to 63% among supporters of the United Conservative Party of Alberta (UCP). Nineteen percent of respondents said improved benefits and care for those injured in collisions was most important.

“Albertans are clear that they want the province’s Care-First auto insurance reforms to deliver significant savings,” said Aaron Sutherland, Vice-President, Pacific and Western, Insurance Bureau of Canada (IBC). “The provincial government has the ability to deliver this, but improving affordability will require eliminating litigation in the new model, fully adopting best practices from other provinces, and promoting a competitive insurance market that offers a wide range of choice for drivers – something the ongoing rate cap is greatly eroding.”

When the Care-First auto insurance model was announced in November 2024, the government indicated it was basing its reforms on Manitoba’s system. Since then, however, it has confirmed that Care-First will retain a significant right to sue — a feature not found in Manitoba — and will offer the highest level of recovery benefits in the country. These additions are expected to drive premiums higher than originally intended.

A recent analysis from consulting firm MNP found that the government’s intention to maintain the ability to sue could increase premiums by up to $136 annually per driver. In light of these findings, IBC is urging the government to resist pressure to keep the ability to sue in the new system and instead stay focused on ensuring collision victims receive the care they need to support their recovery.

Other notable findings of Yorkville’s survey include:

• 63% of respondents said their auto insurance premiums have risen over the past three years, despite the province freezing and capping premiums.
• Only 42% of respondents believe increasing severe weather events in Alberta contribute significantly to auto insurance rate pressures, even though last year’s Aug. 5 hailstorm in Calgary caused roughly $1 billion in auto insurance claims.
• When asked the main reason why premiums are rising, 54% cited that vehicles are becoming more sophisticated and costly to repair, while 52% blame inflation.

Interestingly, 54% of respondents believe auto insurer profits are a key contributor to auto insurance premiums. In a recent annual report of industry profitability, the Alberta Auto Insurance Rate Board, which regulates auto insurance premiums in the province, noted that auto insurers lost 20 cents for every dollar sold in premiums in 2024 due to the government’s ongoing rate cap.

With the cost of delivering coverage now far higher than the price insurers are allowed to charge, several companies have exited the Alberta auto insurance market, while others have been forced to restrict the sale of coverage to remain viable. This has made it difficult for many drivers to secure the insurance they need today.

“Auto insurance premiums are facing a litany of cost pressures, from tariffs and inflation to legal costs and a growing number of extreme weather events,” said Sutherland. “As these pressures grow, the rate cap is causing turmoil in the auto insurance market, negatively impacting drivers and their ability to secure the coverage they need. Alberta’s brokers are seeing this first-hand and recently shared concerns about the rate cap’s impact on their ability to secure coverage for their customers.”

About the Yorkville Strategies survey

Yorkville Strategies, in partnership with IBC, carried out the live telephone survey of 850 adults in May and June 2025. The survey has a margin of error of ±3.4.

About Insurance Bureau of Canada

Established in 1964, Insurance Bureau of Canada (IBC) is the national industry association representing Canada’s private home, auto and business insurers. Its member companies make up the vast majority of Canada’s highly competitive property and casualty (P&C) insurance market.

As the leading advocate for Canada’s private P&C insurers, IBC collaborates with governments, regulators and stakeholders to support a competitive environment for the P&C insurance industry to continue to help protect Canadians from the risks of today and tomorrow.

IBC believes that Canadians value and deserve a responsive and resilient private P&C insurance industry that provides insurance solutions to both individuals and businesses.

For media releases, IN Focus articles, or to book an interview with an IBC representative, visit ibc.ca. Follow us on LinkedIn, X and Instagram, and like us on Facebook. If you have a question about home, auto or business insurance, contact IBC’s Consumer Information Centre at 1-844-2ask-IBC. We’re here to help.

SOURCE Insurance Bureau of Canada