Albertans cool on the idea of 'no fault' auto insurance, poll says

Albertans are against the idea of "no-fault" auto insurance, a new poll says, adding the system may be cheaper, but could be much more costly in other ways. (THE CANADIAN PRESS/Lars Hagberg)

A new poll suggests there is little interest in implementing "no-fault" insurance in Alberta, with a majority of residents saying the system is "less fair" for drivers.

The report, released on Thursday by Fair Alberta Insurance Regulations (FAIR Alberta), said that drivers here are content with the "at-fault" automobile insurance system.

"In light of our recent findings, it's evident that Albertans have a strong preference for the at-fault insurance system," said Janet Brown Opinion Research, the firm that conducted the poll, in a news release.

"Our data shows a majority of the population is not only familiar with the current system but also prefers it over the alternative no-fault model."

The poll also looked at perceptions of fairness, such as the no-fault principle of treating each driver equally while also prohibiting litigation against the at-fault driver.

The poll said 61 per cent of survey participants were opposed to equal treatment and 71 per cent disliked the inability to sue an at-fault driver.

What is no-fault insurance?

No-fault insurance is used in a number of Canadian provinces, including Ontario and B.C.

Despite its name, it doesn't mean that no one is at fault in a car crash.

It only means that each driver will deal with their own insurance company on claims. That means the party at fault can get the same coverage and benefits as the person who is not at fault.

It also protects the at-fault driver from any civil litigation.

ICBC launched a no-fault system in May 2021, saying it meant lower insurance premiums for drivers.

However, some said it prompted them to use those savings to purchase additional disability coverage, in the event an accident left them permanently injured and unable to work.

This year, Ontario drivers were offered the option to decline the coverage provided by no-fault insurance, which typically protects vehicle owners from costs related to damage when they are not at fault in a crash.

However, experts said anyone who opts out of the coverage puts themelves at risk of not being compensated at all in the event of a crash.

"You're opting out of any coverage in the event of…a not-at-fault-accidents," Morgan Roberts, director of RH Insurance, told CTV News Toronto.

"So if you're not at fault for an accident that happens, you're not going to be reimbursed for (the) replacement value of the vehicle. No loss or damage. There won't be any repair costs, towing costs, anything like that. You're opting out of all of it."

'An Alberta value'

Jackie Halpern, FAIR Alberta spokesperson, said it is the responsibility of all Alberta drivers to purchase insurance and we all deserve a "fair and affordable" system.

"Albertans are clearly saying victims of accidents caused by bad drivers should have the right to hold the responsible parties accountable - that's just an Alberta value - personal responsibility," Halpern said.

The poll also found a strong desire (68 per cent) for the provincial government to step in to do what it can to lower insurance premiums within the existing system.

Only 16 per cent were in favour of exploring a no-fault system, something that Halpern believes "takes power away from consumers."

"There is a better way to reform the system that promotes affordability for Albertans, accountability for insurance companies, and expands choices for consumers. We can do all of these things while protecting the rights of Albertans."

The Alberta government says it is aware of FAIR Alberta's survey and has commissioned a report on the feasibility of no-fault insurance in the province.

The survey of 900 Albertans was conducted between Jan. 8 and 15. The margin of error is +/- 3.3 percentage points, 19 times out of 20.

(With files from CTV Vancouver Island and CTV Toronto)