With Jamaica recording 175 fatalities from 151 fatal collisions since the start of this year, the Jamaica Observer Online, in association with a number of partners, has produced a supplement dubbed ‘NO NEED FOR SPEED, which looks at all aspects of the carnage on the roads. This is one of the many stories in the supplement which can be accessed here.

The high rate of traffic accidents across Jamaica is contributing to a surge in insurance premiums, leaving motorists with hefty yearly fees and prompting calls for improved road safety to mitigate these increases.

According to Jordon Tait, assistant general manager of GK General Insurance Company, insurance premiums are calculated using statistical data and risk assessment models. Therefore, a higher incidence of car accidents translates to a higher level of risk leading to higher premiums.

“When there is an increase in road fatalities, it usually indicates a higher level of risk for insurers, which can lead to higher insurance premiums for drivers. With more road fatalities, insurance companies may face higher costs associated with paying out claims for injuries, property damage, and other related expenses,” Tait shared with Observer Online.

He said to offset these increased costs, insurers may adjust premiums accordingly.

Sheldon Maragh, General Insurance Advisor at AG Insurance

Statistics from the Island Traffic Authority show that more than 2,000 fatal crashes occurred over the past five years resulting in the deaths of 2,273 people. Last year alone, 425 people were killed in fatal crashes. Up to May 26, there were 145 crashes and 168 deaths recorded so far for 2024.

Over the past two years, comprehensive motor insurance premiums rose by around five per cent on average.

But Tait noted that a high rate of road crashes was not the sole determinant of premium rates as general increases were typically influenced by insurers’ analysis of statistical data and risk assessment models.

He said premium rates can differ significantly based on other factors including location, driving history, coverage type, insurer policies, market conditions, and even claim submissions.

“When an individual submits a claim to their insurance company, it signals that they have encountered a loss or damage that the insurer must address. Insurers consider claim history as a significant factor in assessing an individual’s risk profile and determining premium rates.

Jordon-Tait, Assistant General Manager, Commercial Lines at GK

“It’s important for individuals to inform their insurance company within 30 days of an incident that could result in a claim, whether initiated by themselves or a third party. Failure to do so would breach the policy. Furthermore, a track record of no reported incidents can also influence an individual’s future eligibility for insurance coverage,” Tait said.

General Insurance Advisor at Advantage General (AG) Insurance Company, Sheldon Maragh further explained how road crashes can have a direct impact on insurance premiums.

“It [road accidents] increases the rate at charge to calculate premium so, for example, last year for a vehicle that valued $2 million, the rate was five per cent but because the amount of accidents is more, instead of the insurance company charging five per cent, they are now charging seven per cent so what happens is insurance works on the pool of everybody in the market and the more accidents that tend to happen then they have to charge a higher rate because they are going to be paying out more for accidents. That affects everybody,” Maragh told Observer Online.

Noting that premiums have gone up at AG as well, he explained that with no claims discounts and other varying factors, the impact may differ for motorists.

“The rate is not fixed because we offer various different policies … and remember that discount is not fixed for everybody, so everybody earns different no claims. So it affects everybody differently.

It might affect me in a way where my premium might go up $3,000 and it might affect somebody else where it might go up $20,000 or $30,000. So it all varies based on how much discount a person is earning,” Maragh said.

He clarified, “Mostly the accidents determine the rate and then for instance, if you are accident free then you can build up your no claims discount to make it less.”

To avoid or minimise the occurrence of road crashes, Tait had the following recommendations for road users:
· Follow traffic rules: Obey traffic laws, speed limits, road signs, and signals. Adhering to traffic rules is essential for maintaining safety on the road.
· Avoid distractions: Stay focused on the road while driving and avoid distractions such as texting, talking on the phone, eating, or adjusting the radio.
· Don’t drive under the influence: Never drive under the influence of alcohol or drugs because impaired driving significantly increases the risk of accidents.
· Maintain your vehicle: Ensure your vehicle is properly maintained with regular checks on brakes, tires, lights, and other essential components. A well-maintained vehicle is safer on the road.
· Use seatbelts: Always wear seatbelts while driving or riding in a vehicle. Seatbelts can significantly reduce the risk of injury or death in the event of a crash.
· Stay alert: Be attentive to your surroundings while driving. Anticipate potential hazards and be prepared to react quickly to avoid accidents.
· Avoid aggressive driving: Practice patience and avoid aggressive behaviours such as tailgating, speeding, or road rage. Maintain a safe distance from other vehicles.
· Adjust to weather conditions: Be cautious when driving in adverse weather conditions such as rain, fog, snow, or ice. Adjust your driving behaviour accordingly to ensure safety.
· Be mindful of pedestrians and cyclists: Watch out for pedestrians and cyclists, especially at intersections and crosswalks. Give them the right of way and be aware of their presence on the road.
· Take breaks on long trips: If you’re embarking on a long journey, take regular breaks to avoid fatigue. Fatigue can impair your driving ability and increase the risk of accidents.

Meanwhile, Maragh stressed the importance of installing dash cams.

“For me, you can’t really stop accidents from happening but what you can do is put yourself in a better situation of what happens when it happens. So for me, personally, I don’t drive none of my cars without a dash cam… So I always advise, if you can, put in a dash cam,” Maragh said.