Tag: no fault insurance is no good

No-fault auto insurance is fraught with problems and limitations.  The auto insurance companies will make more profit while individuals in Alberta will  be left struggling.

Alberta is transitioning to a no-fault auto insurance system.   The no-fault auto insurance system is being promoted as streamlining the claim process and potentially lowering auto insurance.  Instead, the level of care will reduce as claims get stuck in the bureaucracy of the insurance company, and valid treatments for injuries are denied.    There will be more forms and a much more complicated process when you are hurt and in need of medical treatments.  Injured individuals will be left without recourse and they will have no protection.  Moustarah & Company, your personal injury lawyer, currently helps you receive treatment and heal from your injuries, and then fights on your behalf to ensure that you receive fair and just compensation for your injuries. The shift in Alberta to no-fault insurance will leave you without guidance and without legal recourse. 

No-Fault System (Care-First) only allows for compensation from your own insurer.  Under the no-fault system, your own insurance company will decide what medical treatments they want to pay for, and how much you should be compensated.  Your own insurance company will be responsible for covering your medical expenses, rehabilitation costs, and other losses, regardless of who caused the accident.   Bad drivers and the at-fault drivers are no longer held responsible for their actions.
The specific benefits and compensation amounts will be determined by the insurance companies, based on government regulations.   Your insurance company will decide how much money they are willing to give you.
  • Limited right to sue:

    In most cases, you will no longer be able to sue the at-fault driver for pain and suffering. There are a few and very limited exceptions, such as if the at-fault driver is convicted of a criminal offence like impaired driving. 

    Focus on insurance company profits:

    The new system is intended to provide quicker access to benefits for injuries and rehabilitation, aiming to reduce the number of lawsuits and streamline the claims process.   Unfortunately, the new system will result in more forms for injured individuals to fill out.  More complicated process to be approved for medical treatments.  And less protection for victims of car accidents in Alberta.  The insurance companies will continue to raise premiums, especially on good drivers.  And the insurance company will now control and decide how much they pay out.  More money in, and less money out equals huge profits for auto insurance companies in Alberta.

Limited legal recourse:
The no-fault system limits the ability of individuals to seek full compensation for pain and suffering, especially in cases of serious injuries.  the insurance company will decide which medical treatments they will pay for, and you have no ability to hold them accountable.   In addition, there will be no personal injury lawyers giving guidance and helping injured individuals navigate the complicated process. 
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Alberta Care-First No-Fault Insurance: When Can I Still Sue?

Alberta Care-First No-Fault Insurance: When Can I Still Sue?

When Alberta’s Care-First auto insurance system takes effect on January 1, 2027, most motor vehicle injury claims will be handled differently than they are today.

Many Albertans have heard that the new system will eliminate lawsuits arising from car accidents. While Care-First significantly limits the ability to sue, it does not eliminate legal action in every circumstance.

In fact, Alberta’s no fault auto insurance legislation specifically preserves the right to sue in certain situations involving criminal conduct, serious driving offences, and losses that exceed available benefits.

If you have been injured in a motor vehicle collision, understanding when a lawsuit may still be possible is essential to protecting your rights. This article compares some of the differences between the previous at fault auto insurance and the no fault auto insurance.

Will I Still Be Able to Sue After January 1, 2027?

The short answer is: yes, in certain circumstances.

Under Alberta’s Care-First system, most accident victims will receive benefits directly through their insurance company rather than pursuing compensation through a traditional personal injury claim.

However, the Alberta government has confirmed that exceptions remain, allowing injured individuals to bring legal claims in specific situations.

You May Still Be Able to Sue an Impaired Driver

One of the most significant exceptions involves impaired driving.

If the at-fault driver is convicted of certain Criminal Code offences, including drunk driving or drug-impaired driving, the injured victim may retain the right to pursue a lawsuit against that driver. Traffic offences and personal injury claims.

The Alberta government has specifically identified impaired driving as an example of a situation where litigation rights may continue under the Care-First framework.

These exceptions recognize that individuals who choose to engage in criminal conduct behind the wheel should continue to face additional accountability. Some driving mistakes might have criminal consequences, even more under the Alberta Care-First because there can still be a personal injury claim.

Can I Sue for Dangerous Driving?

Potentially, yes.

The legislation preserves a right to sue when an at-fault driver is found guilty of certain serious Criminal Code driving offences.

Examples may include:

  • Dangerous operation of a motor vehicle.
  • Impaired driving causing bodily harm.
  • Impaired driving causing death.
  • Flight from police.
  • Other prescribed Criminal Code offences.

The availability of a lawsuit will depend on the specific offence, the outcome of any criminal proceedings, and the circumstances of the collision.

What About Serious Traffic Safety Act Offences?

Alberta’s Care-First legislation also contemplates exceptions involving certain offences under the Traffic Safety Act.

While regulations continue to define the scope of these exceptions, the government has confirmed that some serious driving offences may preserve an injured person’s right to sue.

Examples frequently discussed include conduct such as stunt driving or other serious violations that create substantial risks to public safety.

Can I Sue If My Losses Exceed My Insurance Benefits?

Possibly.

The Care-First system provides substantially expanded medical, rehabilitation, and income replacement benefits. However, Alberta has also indicated that legal action may remain available when certain losses exceed the amounts available under the insurance system.

This issue may become particularly important in cases involving:

Because these cases can be highly complex, obtaining legal advice may be critical when losses are substantial.

Can I Sue Someone Other Than Another Driver?

In some situations, legal claims may still be available against parties outside the Care-First insurance system.

Examples could include:

  • Vehicle manufacturers.
  • Municipalities.
  • Road maintenance contractors.
  • Commercial entities whose negligence contributed to the collision.

The availability of these claims depends on the facts of each case and the applicable laws governing those parties.

What If My Accident Happened Before January 1, 2027?

This is one of the most important questions facing injured Albertans.

If your collision occurred before January 1, 2027, your claim may continue under Alberta’s previous fault-based personal injury system, even if your lawsuit is started after Care-First begins. Existing claims and pre-2027 collisions are generally not affected by the transition to the new insurance model. Book your initial consultation with your Edmonton Personal Injury lawyer today.

This means many Albertans injured before the transition date may still have access to the traditional personal injury claims process and applicable limitation periods.

Why You Should Speak With a Personal Injury Lawyer

Determining whether a lawsuit remains available under Care-First can be complicated.

The answer may depend on:

  • The date of the collision.
  • The nature of the injuries.
  • Whether criminal charges were laid.
  • Whether a conviction was obtained.
  • The amount of financial losses suffered.
  • The parties involved in the collision.

An experienced personal injury lawyer can review your circumstances, explain your rights, monitor related criminal proceedings, and determine whether legal action remains available.

The Right to Sue Has Not Completely Disappeared

Although Alberta’s Care-First system changes how most motor vehicle injury claims are handled, it does not eliminate accountability for all wrongdoing.

Individuals injured by impaired drivers, dangerous drivers, or other serious offenders may still have the ability to pursue legal action. Likewise, certain catastrophic loss situations and claims against third parties may continue outside the traditional Care-First framework.

If you have been injured in a motor vehicle collision, obtaining legal advice as early as possible can help ensure that your rights are properly protected.

About Moustarah & Company

Moustarah & Company represents injured Albertans in motor vehicle accident claims, serious injury cases, insurance disputes, and litigation arising from negligent and unlawful conduct. The firm helps clients understand their rights under both Alberta’s traditional personal injury system and the new Care-First insurance framework.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. The application of Alberta’s Care-First legislation depends on the specific facts of each case and evolving regulations. Individuals should seek legal advice regarding their particular circumstances.