Car insurance rates are already very high in Alberta. Will 120 km/h speed limit increase premiums?
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Auto insurance companies are going to be keeping a close eye on whether the Alberta government moves forward on a proposal to raise some highway speed limits to 120 km/h.
The province has launched an online survey About increasing speed limits on more than 2,150 kilometers of divided highways in various parts of Alberta. The survey also asked which highways should be prioritized for faster speeds.
The government plans to start testing after the survey closes on December 12.
The proposed speed limit change comes at a time when Alberta already has the highest insurance premiums in the country.
In recent years, insurance providers have struggled with unprofitability, affecting many companies Removal From the province.
There are many factors that contribute to the cost of insurance, including the amount and severity of the collision.
Increased speed limits will not necessarily translate into higher insurance premiums, but speeding is a main factor in many accidents.
“If there was a direct correlation, I think, yes, it could have an impact on increased premiums for consumers,” said Matt Dillon, executive vice president of online insurance broker Surex.
“If it’s a factor that causes increased frequency of claims or severity of claims, ultimately the price adjustment will have to be passed on to the consumer.”
Speed limits above 120 km/h exist in other parts of the world, including the United States and Europe.
In Canada, there is only one stretch of road with a 120 km/h speed limit – on the Coquihalla Highway between Kamloops and Hope, BC.
In 2014, beginning in British Columbia Speed limit increased to 120 km/h On three major multi-lane highways, the speed limit has also been increased on 30 other stretches of highway. many of them Changes were rolled back in 2018 After serious and fatal accidents.
The number of fatal accidents increased by 118 percent, injury claims with the Insurance Corporation of British Columbia (ICBC) increased by 30 percent, and total insurance claims increased by 43 percent. research published By professors at the University of British Columbia in 2018.
ICBC website cites speeding as the largest contributing factor to vehicle crash deaths in BC
This week, an ICBC spokesperson said the agency would not be able to determine how speed limits or accidents in a corridor affect insurance premiums.
waiting for data
“In general, one can assume that if the rate of motion is higher the severity of those injuries may be much higher,” Dillon said. “If it is successful, it will be factored into the pricing of policies.”
But for now, insurers will have to wait for claims data on when the speed limit changes go into effect.
“Auto insurance premiums are actuarially determined, meaning they rely on claims data to help predict future costs. Part of the premium calculation is based on where the driver lives – and not on the specific roads they travel,” Rob De Pruis, a national director at the Insurance Bureau of Canada, said in an emailed statement.
The president of the Calgary Firefighters Association says the growing trend of excessive speeding on Stoney Trail is not only dangerous but also putting unnecessary strain on resources.
It’s unclear whether increasing highway speed limits will affect insurance rates, Alberta Transportation Minister Devin Dreschen said in an interview with CBC. alberta at noon,
“There’s a lot of jurisdictional and traffic data that the Bureau of Insurance and others can use to see how setting higher speed limits is a safe approach for a road as designed,” he said.
New vehicles are most expensive in Alberta Compare For all other provinces, at $68,948. Generally, more expensive vehicles cost insurers more money to repair or replace, resulting in higher premiums.
‘This will be a matter of concern’
Dreeshen said there could be more crashes in Alberta due to the province’s growing population, which would result in more drivers on the road.
On average, each household in Alberta owns two vehicles, the highest number of any Canadian province.
Alberta is also up National average for motor vehicle deaths and injuries, according to Transport Canada.
The provincial government’s pursuit of higher speed limits sends an unsafe message to drivers, said Staff Sgt. Andy Woodward with the Calgary Police Service.
“We have to be realistic,” he said. “We have a speed limit of 110 km/h. People will now always travel at 130. If we give them 120, will they travel at 140 or 150? Yes, they probably will, so I would say it would be a concern.”
