Ontario's planned ban on automated speed cameras may reshape the province's road safety landscape and could carry knock-on effects for auto insurance.
Premier Doug Ford said Thursday his government will introduce legislation next month to outlaw the cameras, framing them as a “cash grab” for municipalities rather than a tool to slow drivers. The province will instead require alternate measures such as flashing speed signs in school zones and will encourage speed bumps, raised crosswalks, and roundabouts.
According to a report from the Canadian Underwriter, the move comes as municipalities present evidence that the cameras reduce speeding. Toronto's Hospital for Sick Children and Toronto Metropolitan University found that speeding dropped 45% after cameras were installed. Brampton reported average speed reductions of more than nine kilometers per hour across camera sites, while Mississauga saw similar results.
If those reductions are reversed, insurance observers say the result could be higher claims severity and frequency in the long term, particularly in pedestrian-heavy areas. Insurers rely heavily on municipal enforcement and road safety measures to help manage risk exposure.
Unlike traffic tickets issued by police, speed camera tickets in Ontario do not add demerit points to a driver’s record and therefore do not directly affect insurance premiums. But the broader role of cameras in deterring speeding has potential indirect benefits for insurers by helping reduce collisions. A weakening of those deterrents could raise accident rates, which in turn could put upward pressure on auto insurance claims and premiums.
Toronto Mayor Olivia Chow, opposing the ban, warned it would make roads less safe. “It signals to people that the provincial government is OK with speeding,” she said.
Ford countered that alternative traffic-calming tools would achieve the same safety outcomes without penalizing drivers financially. “Why don’t we actually slow them down, rather than let them speed through a speed camera?” he said.
How Ontario compares with other provinces
The debate over speed cameras is not unique to Ontario. Alberta and British Columbia allow their use, though Alberta has recently tightened rules to restrict “revenue-driven” deployments. Quebec continues to expand its camera program, with results suggesting positive impacts on accident reductions. Insurers note that jurisdictions maintaining or expanding camera enforcement could benefit from fewer speed-related claims over time, while Ontario’s planned withdrawal could create divergence in risk exposure.
The ban adds another layer to an already challenging auto insurance market in Ontario, where insurers are grappling with inflationary repair costs, rising claims, and regulatory oversight of rate filings. Any increase in accidents linked to policy changes on enforcement could amplify those pressures.
