Insurance as a force for good: Prioritising road safety with speed governors.

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The case for speed governors: Insurance-led road safety innovation

Road traffic accidents (RTAs) continue to be a major global concern, with devastating consequences for individuals, families, and economies. The statistics are grim, as demonstrated by recent data showing a concerning rise in fatalities and serious injuries. While various strategies are employed to combat this, from improved infrastructure, road safety PSAs and even enhanced law enforcement, a critical piece of the puzzle remains largely unaddressed: the inherent risk of excessive speed.

The relentless pursuit of speed, fuelled by the marketing of vehicles boasting ever-faster acceleration, and exacerbated by the instant torque of modern electric powertrains, has inadvertently created a recipe for disaster.

It’s time to acknowledge that simply encouraging safe driving isn’t enough, and to explore more proactive solutions. This is where speed governors, devices that limit a vehicle’s maximum speed, come into play. This article argues that the mandate for speed governors should be led not by government intervention, but rather by the insurance industry, driven by their own business imperatives and moral responsibility.

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The current landscape: A mounting crisis

Before exploring the solution, it’s crucial to understand the scale of the problem. The data available reveals a troubling picture. Road fatalities have increased, with pedestrian and motorcyclist deaths disproportionately high. The 25-34 age group is significantly overrepresented in fatality statistics. Accidents spike during late-night and early-morning hours, and highway and main road fatalities are on the rise.

These figures are not mere statistics; they represent real lives lost, families shattered, and communities burdened by grief. The human cost of road accidents is staggering, and the economic impact, including healthcare expenses, emergency services costs, and lost productivity, is equally substantial.

The data also shows a significant increase in fatal crashes on Sundays, with a worrying number of pedestrian fatalities on highways occurring between 10 PM and 5 AM. This signals the need for targeted solutions that address the core factors contributing to these incidents.

Why speed matters: The physics of a crash

Excessive speed is a key contributor to the severity of accidents. The laws of physics dictate that kinetic energy increases exponentially with speed. This means that even small increases in velocity can result in significantly more devastating impacts. A vehicle travelling at 70 mph has far more destructive power than one at 60 mph, making crashes far more likely to result in fatalities or serious injuries.

Moreover, excessive speed reduces reaction time and increases stopping distances, giving drivers less time to avoid an accident. It also heightens the risk of losing control of the vehicle, particularly in challenging weather conditions or on difficult terrain.

The push for vehicles with higher top speeds, and quicker 0-60 times is a major part of the issue. Marketing strategies often highlight these factors as indicators of performance, inadvertently normalising and glorifying excessive speed. The instantaneous power of electric vehicles, while impressive, is another factor, as inexperienced drivers with access to this power may be more inclined to speed with disastrous consequences.

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The solution: Insurance-led speed governors

Speed governors are not new technology; they have been used effectively in commercial vehicles and in some countries to manage the speed of public transport and heavy goods vehicles. By limiting the maximum speed of a vehicle, they can dramatically reduce the severity of accidents, the probability of losing control, and the risk of fatalities. However, the widespread adoption of this technology in private vehicles is largely absent, a gap that the insurance industry could, and should, fill.

Why insurance companies should take the lead

Reduced liability

For insurance companies, the number one objective is to reduce their liability. Car collisions create huge payouts, and even small accidents create a huge administrative cost. By lowering the maximum speed of any vehicle, they are significantly reducing the chances of these accidents, and therefore their liability.

Data-driven approach

Insurance companies are already using telematics systems to monitor driving behaviour. These systems collect data on parameters such as speed, braking, and cornering, enabling the assessment of risk profiles for individual drivers. Speed governor implementation is a natural progression of this technology, allowing risk to be actively managed rather than just measured.

Financial incentives

Insurance companies are profit driven entities, reducing crashes increases their profitability, by reducing their payouts, they can increase their profits. With less risk to their bottom line, insurance companies will be able to offer better deals, which would in turn increase their client bases.

Moral responsibility

Beyond profit, insurance companies have a moral obligation to safeguard their policyholders and the broader community. The reduction of collisions has a direct positive impact on the safety and wellbeing of everyone. By mandating speed governors, they become active participants in creating a culture of responsible driving, promoting a societal benefit rather than just their own profitability.

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Government vs insurance mandate: The case for the latter

While government involvement in road safety is essential, imposing speed governors through legislation might not be the most efficient or effective approach. Government mandates often face resistance, are subject to lengthy political processes, and can create resentment among drivers. This can lead to non-compliance, further reducing its overall effectiveness.

On the other hand, insurance companies, being market-driven entities, can implement speed governors more readily. They can offer discounts for vehicles equipped with the technology and increase premiums for those without, incentivising widespread adoption. This approach harnesses market forces to drive change, making it more appealing to drivers.

How it works: The technology is already there

Modern vehicles are already equipped with the necessary technology for speed governors to be implemented easily. Many cars have systems that measure speed, and most have computerised engines, making the installation of speed governors a simple task. The system can be configured to only activate above a certain speed limit, further refining its function to prevent speed. It can also be made to give an auditory warning prior to it engaging, giving the driver ample time to adjust their behaviour.

Many new car models come with built-in telematics systems, this data is currently used only by manufacturers, the same technology could easily be used to monitor speed and enable the governor.

The installation costs for a telematics device working in tandem with a speed governor are minimal compared to the cost of just one collision, further incentivising insurance companies to take this path.

Lessons from telematics programmes: A proven model

The effectiveness of data-driven insurance strategies can be observed in telematics programmes that offer discounts for safe driving. In many countries, insurance companies provide lower premiums to drivers who use telematics devices and demonstrate safe driving habits.

These devices collect data on speed, braking, cornering, and other metrics, rewarding safe drivers with lower costs and promoting good driving practices. These programmes prove that this data driven approach to insuring vehicles works, the next logical step is speed governors.

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Addressing potential concerns

Driver freedom

Some may argue that speed governors infringe on driver freedom. However, the reality is that the freedom to drive at excessive speeds endangers other road users. Speed limits are already a restriction on driver freedom, but we accept them as necessary for safety. Similarly, speed governors are a small price to pay for increased road safety.

Emergency situations

While it is true that in the rare case of an emergency, a driver may require additional speed to manoeuvre safely, these cases are the exception and not the rule. By limiting speed across the board the likelihood of any such situation will be greatly diminished.

Insurance costs

Some drivers may balk at an increase in insurance costs, but these should be counterbalanced by an increase in the number of drivers with the technology which would reduce the amount of liability spread to all policy holders.

A safer road ahead and worry-free travels

The data is clear: road accidents pose a significant threat to safety, with speed serving as a major contributing factor. While awareness campaigns and improved road engineering are crucial, they aren’t enough to combat this complex issue alone. Insurance companies, with their business interests and moral responsibilities, are uniquely positioned to drive the adoption of speed governors.

This technology is readily available, cost-effective, and proven. By mandating speed governors and incentivising safe driving through data-driven programmes, the insurance industry can revolutionise road safety, fostering a system that prioritises the well-being of all. This proactive approach, focussing on both accident prevention and personal accountability, is vital for a safer future on our roads.

However, even with the implementation of these important measures, accidents can still happen, especially when we consider the risks and unknowns we encounter on the road and when we travel further afield. As you look forward to your next trip, whether it’s a local weekend getaway or an international adventure, don’t leave your travel plans to chance.

Just as speed governors provide a safety net on our roads, comprehensive travel insurance can protect you from unexpected financial burdens that can arise from unforeseen circumstances during your travels. Whether it’s a sudden illness, lost luggage, or an unexpected cancellation, the right travel insurance can give you peace of mind.

For a reliable and efficient way to secure the coverage you need for your upcoming travels, be sure to explore InsureMyTrip. As the original travel insurance comparison site, InsureMyTrip has over 20 years of experience helping travellers like you find the perfect policy. With a simple quote process and the option to speak with a licensed insurance agent before, during, and after your trip, you can explore comprehensive plans that provide cancellation, interruption, delay, and medical benefits.

They also offer specialised plans for medical, cruise and student travel. By taking a proactive approach with both safer driving practices here at home and with comprehensive insurance for your overseas trips you can enjoy your travels to the full, knowing that you and your family are protected. It’s time to embrace both innovative solutions for road safety here at home and reliable insurance policies for safe travels abroad.

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