Vehicle insurance companies are closely monitoring the Alberta government’s potential decision to raise some highway speed limits to 120 km/h. The province has initiated an online survey to gather public opinions on increasing the speed limit on over 2,150 kilometers of divided highways across Alberta, seeking input on which highways should be prioritized for speed adjustments. The survey will conclude on December 12, following which the government plans to launch a trial.
This proposal comes amidst Alberta’s already high insurance premiums compared to the rest of the country, leading to financial challenges for insurance providers and some companies withdrawing from the province due to unprofitability. Various factors, including the frequency and severity of collisions, contribute to insurance costs. While higher speed limits may not directly result in increased premiums, speeding remains a significant factor in many accidents.
Matt Dillon, an executive vice-president at Surex, an online insurance broker, expressed concerns that any factors leading to more frequent or severe claims will eventually impact consumers through adjusted pricing. Despite speed limits exceeding 120 km/h in other countries like the United States and Europe, in Canada, only a section of the Coquihalla Highway in British Columbia currently has a 120 km/h limit.
In British Columbia, a previous attempt to increase speed limits in 2014 resulted in a rollback of most changes in 2018 following a surge in serious and fatal crashes. Research from the University of British Columbia revealed a 118% increase in fatal crashes, a 30% rise in injury claims with the Insurance Corporation of British Columbia (ICBC), and a 43% increase in total insurance claims due to higher speed limits.
Insurance companies in Alberta are awaiting claims data to assess the potential impact of speed limit changes on insurance premiums. Auto insurance rates are actuarially determined based on claims data, with a portion of premiums influenced by the driver’s location rather than specific roadways. Alberta’s transportation minister, Devin Dreeshen, emphasized the need for safety considerations in setting speed limits, given the province’s growing population and high vehicle ownership rates.
Staff Sgt. Andy Woodward from the Calgary Police Service raised concerns about the safety implications of higher speed limits, suggesting that drivers may exceed new speed limits if implemented. Alberta’s exploration of increased speed limits raises safety concerns among law enforcement officials and highlights the need for a balanced approach between road safety and traffic efficiency.