A recent report emanating from the United States of America reveals that distracted driving is fast becoming a major cause of increment in auto insurance premiums. Shop Insurance, an industry expert says that this trend in not specific to the region but also happens in a similar way in Canada.
Distracted driving gives lot of concern to the global auto insurance industry. A recent report from the Wall Street Journal says that in the United States, car insurance premiums are steadily increasing due to distracted driving.
The reason for expensive auto insurance premiums increase is due to the higher number of collisions which makes drivers more dangerous. The main cause of this increase, according to authorities in the United states is distracted driving.
The most disturbing traffic issue right now is the use of mobile devices to text, talk and surf the internet while driving.
As the number of devices continues to increase, cars will soon metamorphose to an environment of connected technology and in-vehicle systems. While continued use of smart phones is a problem, more distractions are emerging. Many drivers are not afraid of the punishments of distracted driving because they would be impaired from driving.
Because the number of collisions as a result of distracted driving in on a steady rise, insurance companies find it difficult to meet up. While premiums are rising, they are not rising at a rate that will match up with the cost of collisions. They will cause companies to further increase their rates.
While this is a microcosm of what obtains in the US insurance market, it is also similar to the situation in Canada. Insurance companies are struggling in the midst of increased collisions resulting from distracted driving. The fight against distracted driving is indeed a challenging one. The infraction does not bear the same stigma like when caught driving in a drunken state.
Insurance companies are becoming more aggressive with punishing offenders. Hiking premiums substantially and labeling distracted drivers as high risks is a way of fighting the apathy show by some motorists to the problem.
Shop Insurance Canada however says insurance companies need to be sure that the zero-tolerance message is absolute and insurers must have government backing.
Insurers are beginning to deter distracted drivers and must keep the momentum until they are giving the same treatment as impaired drivers. This implies charging premiums which are prohibitive, and far greater than average and treating defaulters as high risk drivers.
Shop Insurance Canada is a company based in Toronto which specializes in offering high quality auto insurance products to clients in Ontario and Canada. Their online quoting tool works with an engine which is easy to use and delivers the best cheap auto insurance quotes from more than 25 leading providers in Canada. Shop Insurance Canada also gives expert advice to auto insurance companies, and also news and guides to help clients find the best deals.
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