Alberta Premier Danielle Smith has defended her government’s auto insurance reforms in the face of growing grassroots discontent, claiming that no perfect solution would have satisfied everyone.
The United Conservative Party has faced criticism from lawyers and industry experts regarding the changes and the government’s unclear messaging on insurance premium impacts.
Over the weekend, Juno News’ Keean Bexte asked Smith at the Canada Strong and Free Network conference in Calgary if she was committed to the “Care First” model.
“The changes that you’ve announced to the Insurance Act has sort of not gone over very well with party members from the ones I’ve spoken to at least,” said Bexte. “Are you committed to those changes? Do you think they’ll actually benefit Albertans? Do you think that they’ll lower the price of premiums or has that sort of faded?”
“I think people are going to be unhappy either way,” replied Smith.
She referenced a previous report that showed Albertans paid the highest car insurance in the country, regardless of their driving record or vehicle.
Some reports showed Albertans were paying double for mandatory auto insurance premiums compared to Ontario, and triple compared to some Atlantic provinces. However, some stakeholders raised concerns with the new approach.
KMSC Law warned that the changes proposed by the UCP government would embolden insurance companies.
“Under the new ‘care-first’ no-fault model, injured Albertans will have their treatment and benefits controlled entirely by insurance companies. These companies—motivated primarily by profit—will determine the nature and extent of your care and benefits, not your own healthcare providers,” reads the press release.
CTV News previously revealed a report from the Alberta Superintendent of Insurance highlighted that between 2022 and 2024, over 20 auto insurance companies were fined more than $3.1 million for overcharging drivers through ineligible surcharges, programming errors and a failure to apply appropriate discounts.
Smith cited other reports suggesting a full public insurance model, which she said would have put people out of business and would have gone towards a completely no-fault system without litigation.
“We thought that would have been too hard. So we’re trying to create a call your doctor first approach as opposed to call your lawyer first when you get into an accident, so you can get the care that they need and the income support that they need and still allow for some avenues for lawsuits,” said Smith. “I can tell you there isn’t a way to get 100 per cent agreement on the approach.”
The government initially proposed that the changes would save Albertans up to $400 per year.
However, a government report released in August 2025 did not repeat earlier promises of $400 in annual savings from the reforms. Officials claimed that rising costs from inflation, U.S. tariffs, and natural disasters like the Jasper wildfire made the pricing impact uncertain, according to CBC.
Smith previously proposed a care-focused system to replace the court-based system.
The new “Care First” model, brought in under Bill 47, is set to take effect in 2027. The province has promoted the reforms as a way to speed up care and lower premiums, but some critics have pointed out similarities between the proposed approach and B.C.’s no-fault insurance model.
The Canadian Bar Association’s Alberta branch commissioned a Nanos study in May 2025 on the matter and found that most Albertans want to retain the right to sue.
The survey found that 47 per cent of Albertans found it to be unlikely that savings would occur from the “no-fault system.” Three-quarters wanted to right to sue for compensation when harm or injury occurs. Over eight-in-ten, 82 per cent, said that individuals should be held legally and financially responsible if their actions cause harm or injury. Over half, 52 per cent, thought it was not urgent or somewhat not urgent to amend the current model.
“This research highlights just how strongly Albertans value accountability and the ability to seek recourse when they’ve been harmed,” said M. Jenny McMordie, co-chair of CBA Alberta’s working group on auto insurance reform. “These findings point to a need for further consultation.”
The new Automobile Insurance Act will require insurers to cover medical, rehabilitation, and other prescribed services for Albertans injured in collisions regardless of fault, while also providing income replacement, permanent impairment, and death benefits for spouses or dependents. It restricts most lawsuits against at-fault drivers, except in limited cases such as criminal convictions or losses exceeding policy limits, and establishes a new tribunal for disputes over care and treatment decisions.
Finance Minister Nate Horner previously pushed back on critics who call the changes “no-fault.”
“Some will categorize this care-first system as no-fault. I really think that’s a misleading label and just not right. Under this model, fault still matters. Bad drivers will continue to pay more in premiums. Drivers will be held accountable for their actions,” he said.
In response to Bexte’s question, Smith insisted the new model was a “middle of the road” approach.
“We thought we took the middle of the road approach that preserved as much of the private market as possible but still addressed the legitimate concerns we’re hearing for many years,” she said.