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Usage Based Insurance

We pride ourselves on finding the best prices and the best coverage for your insurance.

  • Take advantage of an instant 10% sign up discount
  • Get the coverage you need based on your usage
  • Save up to 25% off your insurance


Complete the form or call 1-800-463-8074 to speak with a licensed broker about Usage Based Insurance today.

Usage Based Insurance in Ontario

Usage based insurance, also known as pay-as-you-go insurance or telematics insurance, is 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: Hard braking, rapid acceleration and time of day the vehicle is driven.

Telematics can save you money on your insurance. You can save roughly 10% immediately for signing up and could earn a discount of up to 25% at your renewal based on your driving habits.

What is usage based insurance?

Usage based insurance is technology-driven 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 from safe and responsible driving.

Telematics Insurance - Morison Insurance - Ontario

Who needs usage based insurance?

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. Even basic factors like annual usage, distance, 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.

How does usage based insurance work?

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, it will not increase your auto insurance premium. Usage based insurance programs are voluntary, and drivers can opt out at any time.

What are the benefits of usage based insurance?

The benefits of usage based insurance include saving money and learning how safely you drive.

Drivers can control their savings with usage based insurance. Driver’s 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.

Some 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.

Usage Based Insurance - Morison Insurance - Ontario

How much does usage based insurance cost?

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 safe you drive. The safer you drive, the more of a discount you will receive. There is no additional cost to use usage based insurance. Monitoring devices are free.

How much can you save with usage based insurance?

Usage based insurance savings can 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 25% when your auto insurance renews.

Your best bet is to speak with an insurance broker who will help determine how much you save on your insurance premium with usage based insurance.

What does usage based insurance cover?

Usage based insurance provides the same insurance coverage as any auto insurance policy. Usage based insurance provides liability coverage, direct compensation property damage, accident benefits coverage, 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.

Pay As You Go Insurance - Morison Insurance - Ontario

What insurance companies offer usage based insurance?

Many insurance companies, like Intact or CAA, offer usage based insurance and the programs differ. It is best to contact an insurance broker who will reach out to numerous companies for competitive rates and money-saving usage based programs.

  • Intact Insurance focuses on, among other things, safe driving. Its ratings include monitoring if a driver uses their phone while driving. Not using your phone when driving improves your safety, and helps you save on your car insurance. An insurance broker can help to enroll you in this program.
  • CAA Insurance, which is provided through insurance brokers, has a pay-as-you-go program where a driver pays for what they drive. If you drive less than 9,000 kilometres per year, this program can be a good fit for you to reduce your auto insurance costs.

Where can I buy usage based insurance?

You can buy usage based insurance from Morison Insurance. Our usage based insurance experts will shop Ontario’s leading insurance companies ensure that you have the best insurance coverage for your vehicle. 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.

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