Usage-based insurance, also known as telematics insurance, is pay-for-how-you-drive auto insurance designed to reward good driving behaviours. By downloading an app onto your smartphone or by installing a small plugin device to your vehicle, the insurance company will be able to record your driving behaviour. Assessment is primarily based on three factors such as hard braking, rapid acceleration, and time of day the vehicle is driven, speeding and distracted driving.
Telematics can save you money on your insurance. You can save roughly 5% to 10% immediately for signing up and could earn a discount of up to 30% based on your driving habits.
Usage-based insurance is technology-driven pay-for-how-you-drive auto insurance that records speed patterns, distance travelled, acceleration rates, hard-braking habits, as well as the time of day you drive. Your premium is evaluated based on this data allowing you to save money for safe and responsible driving.
Ontario drivers interested in saving money should consider usage-based insurance especially if you are a safe driver or you drive a limited number of kilometres. Factors, such as distance driven, and other verified data can help insurance carriers better understand your vehicle usage and reward you with better car insurance premiums.
An insurance broker can help you determine if usage-based insurance is the best option for your specific needs.
Usage-based insurance uses a small device plugged into your vehicle or an app on your phone that records your driving habits. Insurance companies will look at factors such as your speed, distance travelled, your acceleration rates, the time of day you drive, hard-braking habits, and more, to determine your insurance premium.
Important to know: While information collected on your driving habits can result in savings on your auto insurance, most programs will not increase your auto insurance premium. Usage-based insurance programs are voluntary, and drivers can opt out at any time.
The benefits of usage-based insurance include saving money and learning how safely you drive.
Drivers can control their savings with usage-based insurance. Drivers can enjoy savings, increase savings, and maintain savings. Usage-based insurance allows insurance companies to identify responsible drivers and reward them with lower auto insurance rates.
Insurers provide drivers with regular reports on their driving habits. The driver will know information such as the number of rapid accelerations, hard braking, speeding and other habits. This permits drivers to monitor their habits, know how safely they are driving, and where they can improve to drive more safely.
Insurance Business Canada has more information on telematics insurance.
The cost of your auto insurance premium with usage-based insurance will vary. This is because insurance companies base your premiums on your driving habits and how safely you drive. The safer you drive, the greater the discount you will receive, to a set limit. There is no cost to use usage-based insurance. Enrolment and monitoring devices are free.
Pay-for-how-you-drive usage-based insurance savings differ depending on the insurance company. In many cases drivers will save 5% to 10% immediately when signing up, save even more after a period determined by the insurer, and up to 30% when your auto insurance renews.
Your best bet is to speak with an insurance broker who will help determine how much you can save on your insurance premium with usage-based insurance.
Usage-based insurance provides the same mandatory insurance coverage as any auto insurance policy in Ontario. Usage-based insurance provides mandatory coverages such as liability coverage, direct compensation property damage coverage, accident benefits coverage, and uninsured automobile coverage. You can also purchase optional coverages such as rental vehicle coverage, all perils, collision and comprehensive coverage, and more.
An insurance broker will shop the insurance market to get you several competitive quotes to help you find the auto insurance and usage-based insurance program that best meets your needs and budget.
Insurance companies, such as CAA Insurance, Pembridge Insurance, Intact Insurance and Travelers Insurance, all of which are available through Morison Insurance, offer usage-based insurance. Programs are broadly the same, but some details do differ. It is best to contact an insurance broker who works with these companies to receive assistance and discuss the different pay-for-how-you-drive programs.
You can buy usage-based insurance from Morison Insurance. Our insurance brokers can help you with usage-based programs offered by CAA Insurance, Pembridge Insurance, Intact Insurance and Travelers Insurance. We will shop Ontario's leading insurance companies to ensure you have the best insurance coverage for your vehicle and help you to determine if usage-based insurance is good for you. Get started today by filling out the form on our website, or by calling 1-800-463-8074.
This content is written by our Morison Insurance team. It is provided for general information only. Insurance needs differ from person to person, and this article is therefore not a substitute for professional advice about your individual insurance needs which can be obtained by speaking to one of our brokers.