Edmonton, Alberta — Most Albertans want the province’s upcoming Care-First auto insurance system to reduce auto insurance premiums, a new survey released by Yorkville Strategies has found.
Most (52 percent) respondents said lower auto insurance prices mattered most in the new model. About one-in-five — 19 percent — said improved benefits and care for collision victims was most important.
The Insurance Bureau of Canada commissioned the survey as the provincial government prepares to implement its controversial Care-First system, announced in November 2024. The government initially indicated it would base reforms on Manitoba’s system, but has since confirmed Care-First will retain a significant right to sue and offer the country’s highest recovery benefits.
Aaron Sutherland, the IBC’s vice-president for Pacific and Western regions, said the additions could undermine potential savings.
“Albertans are clear that they want the province’s Care-First auto insurance reforms to deliver significant savings,” Sutherland said. “The provincial government has the ability to deliver this, but improving affordability will require eliminating litigation in the new model.”
A recent analysis by consulting firm MNP found maintaining the ability to sue could increase premiums by up to $136 annually per driver. The IBC is urging the government to remove litigation from the system and focus on ensuring collision victims receive necessary care.
The survey found widespread frustration with current premium costs. Sixty-three percent of respondents said their auto insurance premiums have risen over the past three years, despite the province freezing and capping rates.
When asked about rising premiums, 54 per cent cited increasingly sophisticated and costly vehicle repairs, while 52 per cent blamed inflation. Only 42 per cent believed severe weather events contribute significantly to rate pressures, despite last year’s Calgary hailstorm causing roughly $1.1 billion in auto insurance claims.
A majority (54 percent) of respondents believe auto insurer profits drive premium increases. However, the Alberta Auto Insurance Rate Board noted in a recent report that auto insurers lost 20 cents for every dollar in premiums sold in 2024 due to the government’s rate cap.
The rate cap has forced several insurers to exit Alberta’s market, while others have restricted coverage sales. This has made it difficult for drivers to secure insurance.
“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,” Sutherland said. “As these pressures grow, the rate cap is causing turmoil in the auto insurance market.”
Yorkville Strategies conducted the telephone survey of 850 adults in May and June 2025, with a margin of error of 3.4 percent.
