"Vehicle insurance companies are going to keep a close watch on whether the Alberta government keeps driving forward with a proposal to increase some highway speed limits to 120 km/h. The province has launched an online survey about increasing the speed limit on upwards of 2,150 kilometres of divided highways in different parts of Alberta. The survey also asks which of the highways should be prioritized for faster speeds. The government plans to begin a trial after the survey closes on Dec. 12."
"Increased speed limits won't necessarily translate into higher insurance premiums, but speeding is a main factor in many crashes. If this was to have a direct correlation, I think then, yes, it could have an impact on increased premiums for consumers, said Matt Dillon, an executive vice-president with Surex, an online insurance broker. If it's any factor that attributes to increased frequency of claims or severity of claims, it's ultimately going to have a price adjustment passed on to the consumer."
Alberta launched an online survey about increasing the speed limit on approximately 2,150 kilometres of divided highways and is asking which highways should be prioritized for faster speeds. A trial is planned to begin after the survey closes on Dec. 12. The proposal to raise limits to 120 km/h coincides with already high insurance premiums in the province and recent insurer exits due to unprofitability. Speeding is a leading factor in crashes and could raise claim frequency or severity, which may lead insurers to adjust prices. British Columbia briefly raised some limits to 120 km/h in 2014 but later rolled back most changes, and only the Coquihalla currently has a 120 km/h limit in Canada.
Read at www.cbc.ca
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