Insurance

Going round in circles….

Traffic
There has been a great deal of discussion in the media lately regarding dangerous traffic intersections in YYC. There are a number of reasons why some intersections are more problematic than others. Increased traffic demands exceeding designed capacity, aging infrastructure, confined space preventing larger intersections, topography, poor drainage, glare from sunlight, etc to name a few.

Traffic circles, or “roundabouts” as our friends across the pond like to call them, are becoming increasingly more common here in Calgary. For a lot of us when we think of traffic circles we think of Clark W Griswold stuck driving around the Lambeth Bridge roundabout in London for hours… “ Look kids!  Big Ben, Parliament!”

While traffic circles may seem daunting to some, the truth is traffic circles are a safer, and more efficient way of moving traffic. A recent study showed that traffic circles provide the following benefits:

  • A 37% reduction in overall collisions
  • A 75% reduction in injury collisions
  • A 90% reduction in fatality collisions
  • A 40% reduction in pedestrian collisions

There are some key reasons for these results.

  • Lower travel speeds. Drivers must slow down and yield to traffic before entering the traffic circle. Speeds in the circle are typically 15-30km/h so when a collision does occur it’s typically minor and causes fewer injuries due to lower speeds.
  • No light to beat. Traffic circles are designed to promote a continuous flow of traffic. Because of this flow it eliminates drivers racing to catch the green, or panic braking on yellows and reds.
  • One way travel – roads entering the circle are gently curved to direct drivers into the intersection and help them travel around the circle. The curved roads eliminate the possibility of T-bone and head on collisions.
  • Traffic circles are more effective during power outages as there is no dependence on traffic lights.

From an insurance perspective traffic circles are a great alternative to signal and sign controlled intersections. There are fewer accidents, and those that do occur have a much lower likelihood of injury.  Reducing the frequency and severity of auto insurance claims helps to keep insurance premiums low ensuring everyone can access the coverage they need.

Let’s just hope we don’t wind up with traffic circles like England’s 7 circle magic roundabout in Swindon.

Happy travels!

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Insurance

Deductibles…

Why

What is a deductible?

Deductibles are one of the most misunderstood parts of a car insurance policy. Basically the deductible is the portion you agree to absorb financially in the event of an accident. For example if your deductible is $500 and the repairs to your car cost $8,500, you will be responsible for paying the first $500 and the insurance company will pay the remaining $8,000 to repair your  vehicle.

So how do I choose a deductible amount?

There are many deductible options available. Which one is right for you will depend on your own unique situation.  Typically the higher the deductible the lower your insurance premiums will be.  Here are a few examples of when a higher deductible may benefit you:

  • If you own a high value vehicle a higher deductible will help to keep premiums low.
  • If you recently added a newly licensed driver to your policy.
  • If you have traffic convictions. In some cases your policy may be surcharged depending on the number and type of traffic convictions.   A higher deductible can help to offset some of the surcharge.
  • If you have prior at fault claims. Your driving record may have been impacted by recent at fault losses on your policy. Moving up to a higher deductible can help offset some of the premium increase you may have experienced.

To help determine what deductible is right for you talk to one of our agents. We can walk you through the pros and cons of each deductible option and provide you with cost estimates on each to help you make the right choice for you and your family.

Why do I have to pay my deductible if the claim wasn’t my fault?

The important thing to remember here is that a deductible is always paid. Usually the deductible will be paid by the party responsible for causing the accident.  (If you caused the accident you will pay your deductible.  If the other driver caused the accident, their insurance will pay your deductible).  However, there are instances where you may be told you have to pay your deductible, even though the claim wasn’t your fault:

  • If the responsible driver fled the scene and we don’t know who to go after.
  • If the responsible driver has no insurance.
  • If the claim is a complex multi vehicle accident. Determining who is responsible for what can be a time consuming process. In these cases it may take the insurance claims adjusters months to properly determine fault.
  • If the drivers involved offer different accounts of events leading up to the accident.

Generally speaking the deductible will be reimbursed to you at a later date once fault has been finalized by the claims adjusters.

One of the best things you can do to help protect yourself from having to pay your own deductible in a claim that wasn’t your fault is to sell your car and take the bus to install a dash camera in your vehicle.  Dash cameras don’t lie.  They can provide valuable information about the accident and help prove which driver’s statement is correct.  They are inexpensive, easy to install, and can prove extremely valuable to both the insurance company and police in the event of a claim.

Remember, if you do ever suffer a claim, you have us on your side. We work for you, not the insurance company.  You can lean on us for advice and help in dealing with your claims process.