Auto body shop businesses in Edmonton, AB are experiencing a decline in business due to a significant drop in vehicle collisions – and this trend signals a general drop in insurance claims in the province of Alberta.
According to statistics from the Edmonton Police Service, there were 35,819 collisions in the city in 2019. But the latest data reveals that there have been only 21,854 recorded collisions in 2020 (up to November 18, 2020).
When considering the onset of the COVID-19 pandemic, the period from March 15 to November 18, 2020 only saw 13,155 collisions in Edmonton. By comparison, the same period last year saw 21,262 collisions.
CBC News reported that the decline in the city’s collisions is likely due to many Edmontonians working from home amid the pandemic, which has led to less traffic and thus lower collision risks.
The media outlet spoke to local body shops, which have all reported slow downs in business due to the drop in auto collisions.
"We've seen a lot of a lot less traffic [through the door], and a lot less insurance claims," Doug's Place Collision Repairs director of fixed ops Jack De Sena told CBC News.
De Sena also mentioned that “the auto body industry is directly impacted by claims and accidents,” and that thanks to less traffic on the road, that impact has become even more noticeable.
The Insurance Bureau of Canada (IBC) has also observed the drop in collisions in Alberta, and is expecting to see a lower frequency of auto claims in the province for 2020. However, IBC is also anticipating a potential increase in the severity of claims due to recent changes in driving behaviours, based on data collected in the US during the COVID-19 pandemic.
"We have heard some reports of some of that dangerous driving happening in Alberta, but also right across the country as less people are on the roads, less people looking at what you're doing, a little bit more road and room for you to try some new things," said IBC Western vice president Celyeste Power.
"And that is leading to worst collisions than we would see in any normal year. So that's a pretty worrying trend from a public safety perspective.”
