by Radhika Panjwani
A recent survey by the insurance company reveals among other things: Brampton has the sixth highest frequency of collision claims per 100 cars within the last two years.
Ontario was the only province to report an overall increase in its collision frequency rate – up 4.7 per cent over last year.
So, how do the results of the survey impact insurance rates? We asked an expert.
Here’s Q/A with Dave Pereira, agency manager, from Allstate Canada
Q. Brampton has some of the highest insurance rates in the country, how do the results of the survey tie into that?
DP. Rising insurance rates are an industry-wide trend that is not connected to the findings of this study. However, rising collision rates and rising claim costs do often trigger the need for higher insurance premiums. But there are also many other factors that go into determining rates. For example, Allstate Canada looks at the claims and driving history of an individual, as well as factors such as the make and model of the vehicle to determine the cost of an insurance premium.
Q. What’s the insurance rate in for instance Hanmer, Ont. which ranks #1 in the list? Have they increased substantially?
DP. The cost of car insurance depends on many factors, including the experience level and driving history of the driver, types of coverage you want included in your policy and the kind of car you drive. One of the best ways to keep your rates lower is by driving safely and avoiding any traffic violations and collisions. Speeding tickets, impaired and distracted driving charges, and collisions will most likely result in higher premiums.
Q. How does this year’s survey compare to say last year’s?
DP. While the 2017 Safe Driving Study can tell us a lot about overall trends, we cannot draw direct comparisons to the previous year’s study. The 2017 Safe Driving Study spans a 24-month period beginning July 1, 2015, through June 30, 2017. What we can offer is a comparison to data from July 1, 2013, through June 30, 2015.
Q. What are some of the things that jump off from this survey. What do the numbers reveal?
DP. The most notable finding from this year’s study is that while we’ve seen improvements in some regions across Canada, collisions continue to rise, with a 2.5 per cent increase in the national collision frequency rate over the previous period. This shows there is still a lot of work to be done to reduce collisions as we head into the year’s most dangerous driving season – winter.
While the data does not tell us why this trend is continuing, we believe it’s important to share the trends we are seeing to help encourage a national conversation about what it means to be a safe driver.
Q. How was the data for the survey compiled?
DP. Allstate Canada researchers analyzed collision claims data and policy claims data from its customers to determine the safest communities based on the frequency and severity of collisions. The study spans a 24-month period beginning July 1, 2015, through June 30, 2017, and also offers a comparison to the data from July 1, 2013, through June 30, 2015. Two-year periods were chosen to provide a larger sample for more meaningful analysis.
To ensure the data provides a realistic outlook of what is happening on the roads, only communities with at least 1,000 cars insured by Allstate Canada during the 24-month period were included in the study. This year, 93 communities in Alberta, New Brunswick, Nova Scotia and Ontario were included.