Your Care-First Renewal Is Here: Keep or Sell That Second Car?

If you insure more than one vehicle in Calgary, your mailbox just got interesting. Insurers started sending Care-First renewal notices on November 1, 2026, for policies that take effect on or after January 1, 2027. For a lot of households, the second car on that renewal is a 12-year-old commuter that mostly sits in the driveway. The new price is a good reason to ask a blunt question: is that second car worth what it costs to keep?

Here's what changed, who's paying more or less, and a simple keep-or-sell test you can run with your own renewal in ten minutes.

What Care-First Changes on January 1, 2027

Care-First is Alberta's new auto insurance system. For collisions on or after January 1, 2027, injured people can access medical care and benefits through their own insurer, regardless of who caused the crash, and most injury lawsuits go away. You don't have to do anything to switch. Existing policies move to Care-First automatically on January 1, even if your renewal date is later in the year.

What matters for your wallet is pricing. Alberta's old Grid rating system, which capped what some drivers paid for basic coverage, is going away. Insurers will price drivers more individually. A new adjusted rate cap limits certain renewal increases: insurers cannot raise average rates by more than 5%, and eligible average drivers are capped at a 10% increase at renewal. Changes to your drivers, vehicles, coverage, or driving record may affect whether the cap applies.

Will Your Care-First Premium Go Up or Down?

For most people, down. The Automobile Insurance Rate Board (AIRB) projects an average drop of about 13.7%, or roughly $297 a year, across about 3.1 million private passenger vehicles. Its consumer impact report shows 88.2% of those vehicles getting a decrease, 2.0% seeing no change, and 9.8% getting an increase.

That average hides a wide spread. Families with young drivers are among the biggest winners. Drivers who were previously held down by the Grid, and some higher-risk profiles, can see smaller savings or an increase. An individual premium could rise by more than 10% when Care-First pricing kicks in, depending on eligibility for the adjusted rate cap and changes to the policy. Motorcycle owners face a different result: approved filings average roughly a 100% increase.

Why the second car deserves its own look

People tend to read the total on a renewal and move on. Ask your broker or insurer for the per-vehicle breakdown. The car you drive daily may justify its premium. The one that does a grocery run on Saturdays deserves a separate calculation.

The Real Cost of Keeping a Car You Barely Drive

Insurance is only one piece. Add up everything the car costs just by existing:

• Insurance: AIRB reported an average annual full-coverage premium of $1,903 in 2025, up 8.7% from 2024. Your second car's actual premium may be very different.
• Registration: Budget roughly $100 a year for passenger plates, depending on the registry and term.
• Winter wear: Batteries, block heater cords, tires, and corrosion can still need attention when a car sits through Calgary freeze-thaw cycles.
• Value loss: An older car can lose resale value while it sits, particularly if its condition deteriorates.
• Space: It takes the garage or driveway spot your daily driver needs in January.

A 10-Minute Keep-or-Sell Test for Your Renewal

Grab your Care-First renewal and answer these honestly about the second car:

1. Did you drive it more than twice a month this year? If not, you may be paying a lot for very little use.
2. Is the per-vehicle premium more than about a third of what the car is worth? That's a useful prompt to check the math, though it is not a universal cutoff.
3. Does it need a repair before winter, such as a battery, brakes, tires, or a check-engine diagnosis?
4. Could another household car or transit cover the trips it makes?
5. Would the cash from selling it cover a big chunk of next year's insurance on the car you keep?

Three or more answers favouring a sale mean it is worth getting an offer. Here's an illustration with round numbers, not a quote: a second car worth $1,500, with $1,200 a year to insure and about $100 to register, costs $1,300 a year to keep before repairs or depreciation. Hold it one more year and you have spent most of what it is worth.

Keep, Park or Sell: Your Three Options Compared

Option	Best for	Trade-off
Keep it fully insured	A car you use weekly, or a teen driver's car that now costs less under Care-First	Full premium plus registration every year
Park it on comprehensive-only coverage	A summer car or project you expect to drive again	No road coverage while parked; it still costs money and ages
Sell it for cash	An older car you rarely drive, or one that needs work	You lose the “just in case” option

Comprehensive-only coverage, often called parked or storage coverage, can protect against theft, fire, and weather while the car sits. Ask your insurer what its policy requires before changing coverage or registration. You cannot drive it with comprehensive-only coverage. For a vehicle you value and plan to use again, parking may make sense. For an aging second car, it may simply delay the decision while the car loses value.

How to Sell Before Your Care-First Renewal Date

Timing matters. If you sell before your policy renews, you can avoid the next renewal premium for that vehicle. If you sell mid-term, call your insurer promptly to remove it and ask whether unused premium will be refunded, subject to your policy's terms.

1. Have your registration certificate and photo ID ready.
2. Take your plates off at pickup. In Alberta, plates stay with you, not the car.
3. Get a signed bill of sale and keep your copy.
4. Tell your insurer the car is sold the same day.

A car that's been sitting for months often won't start. That doesn't stop a sale. If the cold already got to it, our guide on what to do when winter killed your car walks through your options. If you just want a number, YYC Cash for Cars handles selling an old car for cash in Calgary with free towing and same-day payment.

What Most People Get Wrong About Care-First

“My premium will drop $300.” That's an average, not a promise. Your number depends on your driving record, vehicles, coverage, and insurer.

“I'll wait to see my renewal before deciding.” Read it per vehicle. Savings on your main car can hide an expensive second one.

“I'll cancel the insurance and keep it in the driveway.” A car without the required insurance cannot be driven, and an unregistered car cannot sit on a Calgary street. You still pay for space and depreciation.

“Shopping around isn't worth it anymore.” Insurers can still quote different prices. Compare offers using the same drivers, vehicles, deductibles, and coverages.

Frequently Asked Questions

When will I get my Care-First renewal notice in Alberta?

Insurers began sending renewals with Care-First pricing on November 1, 2026, for policies taking effect on or after January 1, 2027. If your policy renews later in 2027, you will see Care-First pricing at that renewal. Coverage switches to Care-First automatically on January 1 either way.

Will Care-First lower my car insurance in Calgary?

Probably, but it is not guaranteed. AIRB projects an average 13.7% cut, about $297 per private passenger vehicle, with 88.2% getting a decrease. About one in ten will pay more. Check your own renewal per vehicle.

Should I sell my second car before January 2027?

If you rarely drive it and its yearly insurance and registration add up to a large share of its value, selling before renewal may save money. If you drive it weekly or your renewal drops substantially, keeping it can make sense. Run the keep-or-sell test above.

Can I put my car insurance on hold in Alberta?

Ask your insurer whether it offers comprehensive-only storage coverage for your situation. This may protect a parked vehicle against theft, fire, and weather for a lower premium, but it does not cover driving. Confirm the coverage terms and any registration requirements before you park it.

Decide With the Renewal in Your Hand

Care-First is projected to save most Albertans money, but it won't make a car you don't use worth keeping. If your renewal shows you're paying good money to insure a car that mostly collects snow, get a sale offer and compare the numbers. Call YYC Cash for Cars at 587-700-9806, tell us what you've got, running or not, and we'll give you an offer before your renewal date.