Distracted Driving Will Now Cost You Insurability or at least Much More Money
Do you drive for a living or have a fleet of vehicles in your business? Do you drive to work?
Recent UCP changes to remove the cap rates on auto insurance premiums will have an unintended consequence. Insurance companies in Alberta have been limited by the amount of insurance premium increases they can impose and consequently have been losing $1.30 for every $1.00 in auto insurance premiums. Costs to repair more complicated vehicles is the main reason. Now that the UCP have lifted these limits, Insurance Companies are looking to recoup what they have lost. The major carriers have focused on Distracted Driving as a high-risk offence and the consequences to drivers and fleet owners can be disastrous.
It will be next to impossible for drivers or fleet owners to renew their insurance if they have a distracted driving offence. Insurance Carriers are refusing Comprehensive and Collision coverage. As a last resort, Insurance Carriers are moving these “high risk” clients to the Insurance Facility which is a pool of high- risk clients. We have noted that insurance in Facility can increase your premiums many times over. For example, we know of a particular Fleet Owner who had premiums in the thousands and is now paying tens of thousands in dollars in insurance for having 2 drivers with distracted driving offences.
Distracted Driving can be as simple as having a cell phone in hand or in reach. Police are aggressive in issuing these tickets and we have heard that red light cameras may be set up to look through the front windows to search for in-sight cell phones.
ROMANOVSKY & ASSOCIATES LLP
CHARTERED PROFESSIONAL ACCOUNTANTS
Keith M.J. Anderson* BCom, CPA, CA-IT, CITP
Chartered Professional Accountant and Chartered Accountant (Canada)
CA-Designated Information Technology Specialist (Canada)
Certified Information Technology Professional (US)
* Professional Corporation