New reports by government's rate regulator confirms insurers have reduced rates for drivers by roughly $300 or 15% compared with today

EDMONTON, AB, Sept. 9, 2026 /CNW/ -- Alberta drivers are projected to save roughly $300, or nearly 15% annually, on average, under the province's new Care-First auto insurance system set to take effect January 1, 2027 – substantially more than previously estimated.

In two reports released yesterday, Alberta's Automobile Insurance Rate Board (AIRB) confirmed that Care-First is projected to deliver significant premium reductions for Alberta drivers, while providing further insight into how those savings will vary across different driver and vehicle profiles. Far from providing one-time savings, the reports also show that Care-First will help address long-term affordability concerns, while supporting a competitive and sustainable auto insurance market for the future.

Now that Alberta insurers have completed rate filings for the new auto insurance system, the AIRB's analysis finds that:

• The average driver will see savings of 13.7%, or about $297 per vehicle;
• Young drivers, and families with young drivers, are expected to see the biggest savings, with the young male rating profile showing a reduction of $3,094, or 30.0%;
• Middle-aged private passenger drivers should expect to receive average savings; both male and female driver profiles see a decrease in premiums of approximately $525, around 14.0%; and,
• Seniors also see substantial affordability improvement, with the AIRB finding savings of roughly 20% as drivers move from middle-aged to seniors.

"This updated analysis confirms that Care-First will deliver meaningful savings for Alberta drivers at a time when they need it most," said Aaron Sutherland, Vice-President, Pacific and Western, Insurance Bureau of Canada (IBC). "With household costs continuing to rise due to economic uncertainty caused by inflation and ongoing trade concerns, the government's new Care-First auto insurance system is delivering $300 in savings on average to Alberta drivers, while vastly improving the care and benefits provided to those injured in collisions."

In March 2026, the government released an initial cost analysis of the new auto insurance system, undertaken by consulting firm Oliver Wyman. It found that Care-First would save drivers $259, on average. Those who only purchase mandatory coverages were expected to save up to $366, on average.

"This new analysis shows that the government has succeeded in its goal of putting improved affordability for drivers and expanded care and benefits for those injured at the centre of its work in designing Care-First," said Sutherland. "By taking action to rein in out-of-control legal costs, Care-First will deliver significant annual savings to drivers while providing the greatest level of care and recovery benefits in Canada for those injured in collisions."

Care-First will help restore health to Alberta's auto insurance market

In late August, the AIRB released its "2026 Market and Trends Report," providing its annual overview of the province's auto insurance marketplace. That report shows that Alberta's auto insurance system is broken, as the availability and affordability of coverage continued to decline. Finding that premiums increased 8.7% last year, while insurers continued to lose money on the sale of auto insurance coverage, the report also provided further validation that the government's new Care-First insurance system can't come soon enough.

"As auto insurance renewals come into effect later this year, Alberta's 3.2 million drivers will begin to see reduced prices of nearly 15% on their auto insurance as Care-First starts to deliver real savings and improved affordability," said Sutherland. "Alberta's auto insurers are keen to deliver this new system and the lasting premium stability and improved benefits it provides."

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