Vehicle insurance companies are closely monitoring the Alberta government’s potential decision to increase certain highway speed limits to 120 km/h. The province has initiated an online survey to gather opinions on raising the speed limit on over 2,150 kilometers of divided highways in various regions of Alberta. The survey also seeks input on which highways should be prioritized for speed enhancements.
Upon the conclusion of the survey on December 12, the government plans to commence a trial period. This proposed speed limit adjustment comes as Alberta already faces some of the highest insurance premiums nationwide. In recent years, insurance providers have grappled with profitability issues, prompting several companies to withdraw from the province.
Various factors influence insurance costs, including the frequency and severity of accidents. While increased speed limits may not directly result in higher premiums, speeding remains a significant factor in numerous crashes. Matt Dillon, an executive vice-president at Surex, an online insurance broker, highlighted that any element leading to increased claim frequency or severity could potentially impact consumer premiums.
Speed limits exceeding 120 km/h are present in other parts of the world, such as the United States and Europe. In Canada, only the Coquihalla Highway between Kamloops and Hope, B.C., features a 120 km/h speed limit. British Columbia initially raised speed limits on certain major highways to 120 km/h in 2014 but later rolled back many of these changes due to serious and fatal accidents.
Research conducted by University of British Columbia professors in 2018 revealed a 118% rise in fatal crashes, a 30% increase in injury claims with the Insurance Corporation of British Columbia (ICBC), and a 43% surge in total insurance claims following the speed limit adjustments in B.C. According to the ICBC, speeding is the leading cause of vehicle crash fatalities in the province.
Alberta’s transportation minister, Devin Dreeshen, expressed uncertainty regarding the potential impact of highway speed limit increases on insurance rates. He emphasized the need to consider traffic data and safety implications before implementing higher speed limits. Alberta’s escalating population and the subsequent surge in drivers on the roads may lead to more accidents, as per Dreeshen.
Staff Sgt. Andy Woodward from the Calgary Police Service raised concerns about the province’s exploration of higher speed limits, stating that it could convey an unsafe message to drivers. He cautioned that if the speed limits are raised, drivers may further exceed the set limits, potentially leading to safety issues on the roads.