Vehicle insurance companies are closely monitoring the Alberta government’s potential move to increase certain highway speed limits to 120 km/h. The province has initiated an online survey regarding raising the speed limit on over 2,150 kilometers of divided highways across Alberta, seeking input on which highways should have prioritized speed increases.
After the survey concludes on December 12, the government intends to commence a trial period. This proposal comes amid Alberta already having some of the highest insurance premiums in the country. In recent times, insurance providers have faced profitability challenges, prompting several companies to withdraw from the province.
Various factors, such as the frequency and severity of collisions, contribute to insurance costs. While higher speed limits may not directly lead to increased premiums, speeding remains a significant factor in many accidents. Matt Dillon, an executive vice-president at Surex, an online insurance broker, highlighted that any factor contributing to more frequent or severe claims will ultimately result in consumer price adjustments.
While speed limits exceeding 120 km/h are common in other regions like the United States and Europe, in Canada, only a section of the Coquihalla Highway in British Columbia has a 120 km/h limit. British Columbia had previously raised speed limits to 120 km/h on certain highways in 2014 but later rolled back many of these changes following serious and fatal crashes.
Research from the University of British Columbia in 2018 revealed a significant increase in fatal crashes, injury claims, and total insurance claims after the speed limit adjustments in British Columbia. Speeding is cited as the top contributing factor to vehicle crash fatalities in B.C. Insurance companies will need to wait for claims data to assess the impact of the proposed speed limit changes on insurance premiums.
Alberta’s transportation minister, Devin Dreeshen, emphasized the need to consider traffic data and safety implications when evaluating higher speed limits. With Alberta’s growing population leading to more drivers on the road, concerns arise about potential increases in crashes. Staff Sgt. Andy Woodward from the Calgary Police Service expressed reservations about the government’s exploration of higher speed limits, cautioning that drivers tend to exceed posted limits, potentially leading to even higher speeds if limits are raised.