[Road safety] $102.3 million : the cost of distracted driving for car insurers every year in Canada
Car insurance companies and public health systems end up paying the cost for distracted driving
Distracted driving could end up costing up to $159 million by 2030 in Canada
Obviously, the road injuries and crashes caused by distracted driving have a cost for the car insurance companies. We estimate it to be around $102 million per year. Every year the distracted driving statistics increase, and we have tried to estimate what that could cost car insurance in the near future.
For this, we have built two scenarios, considering that (unfortunately), distracting driving-related collisions will continue to increase :
| Scenario 1 | A 2% annual increase in distracted driving-related collisions in Canada |
| Scenario 2 | A 5% annual increase in distracted driving-related collisions in Canada |
And here is what our projections show:
- In our "optimistic" scenario, distracted driving will end up costing $122.3 million by 2030, meaning a $20 million increase for car insurance companies in comparison with 2021
- In our "pessimistic" scenario, distracted driving could end up costing $158.7 million by 2030, meaning a $55.7 million increase for car insurance companies in comparison with 2021.
Good to know
A poll conducted by the Traffic Injury Research Foundation in 2020 gives interesting insights on distracted driving in Canada. "Almost one in ten Canadian drivers (9.7%) reported texting while driving in 2019. This represents an increase over 2018, when 7.5% reported doing so, and a 102% increase compared to 2010. Talking on a handheld device while driving also increased to 11.7% from 9.3% in 2018; however, talking on a hands-free device decreased from 36.5% to 32%", the document states.
270 Canadian drivers die every year because of distracted driving
How does distracted driving impact road statistics in Canada? Actually, 1,762 people died on the roads in 2019. Distracted driving is estimated to be responsible for 21% of these fatalities, representing a total of 370 deaths across the country over that year.
How do the 4 biggest provinces of Canada compare in this regard ? We have done the analysis :
- With 78 road fatalities related to distracted driving in 2019, BC ranks as the worst Canadian province for distracted driving (This represented 27% of all the annual road fatalities in the province)
- Alberta is the second-worst territory after BC for distracted driving, with 24.9% of road fatalities stemming from distracted driving (representing 72 deaths over 2019).
- Among the four provinces studied, Quebec ranks best with 13.8% of road fatalities attributed to distracted driving. Ontario ranks second at 14.75%.
That trend also reflects when looking at the numbers of motor vehicle collisions in the same four provinces:
- Distracted driving seems to be particularly problematic in BC, with 35.2% of total motor vehicle crashes estimated to be related to distracted driving. In Alberta, this percentage is significantly lower (25.2% of crashes related to distracted driving).
- Indeed, in 2019, the BC police reported a total of 12,476 crashes caused by distracted drivers!
- Quebec is the least-affected province among the big four, at 21% of road crashes related to distracted driving.
| Province | Motor vehicle crashes related to distracted driving | Total police-reported road crashes | Proportion of distracted driving related crashes |
|---|---|---|---|
| Quebec | 5,903 | 28,109 | 21% |
| Ontario | 9,461 | 43,353 | 21.8% |
| Alberta* | 33,581 | 133,124* | 25.2% |
| British Colombia | 12,476 | 35,446 | 35.2% |
Watch out!
*The numbers for Alberta are not those of the crashes reported by the police, but the overall estimated number of crashes estimated by the government. This explains the big difference with the other provinces. The percentage of distracted driving-related crashes is the most significant indicator to consider here.
$432.5 the median distracted driving minimum fine in Canada
Legislation exists in all Canadian provinces prohibiting the use of mobile phones while driving. All provinces have their own legislation and punishment for this type of infraction. However, the line chart below shows that the level of severity regarding distracted driving depends on the provinces :
We can see that BC ranks among the two most severe provinces regarding distracted driving, with a minimum $620 fine for drivers using their mobile phones. However, the amount for distracted driving fines doubles for repeated infractions. The infraction can reach $3,000, as is the case in Ontario, which has the highest maximum penalty in Canada.
Our methodology
The above-mentioned information is accurate as of the date of publication. All our studies are based on reliable information sourced from public and private organizations. For further information on our editorial guidelines please click here.
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