Want to pay less for car insurance? It can be as simple as signing up for usage based insurance (UBI). Let your good driving habits pay off with significant savings. Usage based insurance recognizes your good driving habits. It rewards you in the form of an insurance discount and cost savings.
All drivers can apply. Many save up to 30% on their insurance rates. You could save hundreds of dollar per year.
At ThinkInsure, our insurance experts will help you with your usage based insurance comparison. We’ll help you get set up with a UBI program.
Below you will learn about usage based insurance in Ontario :
There are a number of advantages to signing up for a UBI program with your insurer :
The concept of paying for a product as you use it is not new. It’s just new to the insurance industry. Usage based insurance is also called telematics, pay per use insurance, UBI, and pay as you drive (PAYD). It’s one of the newest way to save money on your insurance rates. It’s becoming increasingly popular with drivers.
It is an extension of telematics technology that determines premiums based on driver behavior. It rewards safe drivers for their good driving habits in the form of an insurance rate discount.
Telematics was first used in 2013 in Canada. Usage based insurance uses driver data to assess your driving behaviour. How each UBI program works depends on the insurer.
There are two main ways to participate in usage based insurance depending on the insurance company:
Whether you have a UBI insurance app or device installed in your vehicle, they work the same way. The device analyzes your driving behavior and collects information about :
Your insurance provider uses this data to gain an overall picture of your driving habits. They assign a score based on your driving. They use your score to determine your discount for the specific time period. How scores and discounts apply will vary by insurance company. Talk with your insurer directly for more information.
The data collected by your insurance provider measures your driving habits and assigns a discount. It is NOT used to change your current insurance premium. It cannot be used to cancel your policy, increase your premiums, or to refuse policy renewal.
Police cannot use the information. All your data has protection under Canada’s Personal Information Protection and Electronic Documents Act (PIPEDA).
According to the Financial Services Commission of Ontario (FSCO) :
“Insurers are responsible for ensuring that any UBIP program, including consent documentation and associated collection, use or disclosure of personal information by the insurer or third parties, meets all requirements in relevant privacy legislation.”
Pay per use insurance provides benefits for all drivers. This includes young and new drivers, parents, and regular good drivers who want to save. Some of the key benefits include :
For new and young drivers, telematics can be a good driving tool to help them become better drivers. It can help them lower their rates at a time when they tend to be the highest. This will benefit parents who have teen drivers on their insurance policy.
No. Usage based insurance will not increase your insurance premium. What it will do is help you save more money when your policy comes up for renewal. You will not be penalized nor have your rates increased. Data collected from a telematics device can not affect your ability to renew your policy.
Usage based insurance is gaining traction among younger generations, particularly among millennials, according to a report by Neilson. According to the report :
Here are some additional UBI statistics :
With any new product there will be a certain amount of misinformation and myths. Common UBI myths include :
Usage based insurance is the future of the insurance industry. It has already become wide use in the UK. It is growing at a rapid pace in the United States. Vehicles are now designed with built in telematics. This will make it easier and more cost effective for insurers to offer usage based insurance products. It’s also easier for drivers to add it to their current policy.
ThinkInsure is happy to offer usage based insurance in Ontario to drivers. Through the Intact my Driving Discount program offered by Intact Insurance, good drivers can be rewarded and save even more money.
Learn more about the Intact my Driving Discount savings program.
Here are some additional commonly asked questions about usage based insurance programs :
How much you save will depend on your driving habits. The insurer and program details will also impact savings. Drivers can save up to 30% on insurance premiums.
Telematics technology is another terms to describe usage based insurance. The terms are interchangeable but they refer to the same type of coverage.
No. Not all insurance providers offer UBI programs. Speak with our insurance experts to find out if your insurer offers the program.
No. Each insurer calculates UBI discounts using different data and metrics. The type of data, discount percentages, rules, and program details vary.
Give us a call or send us an email. Our insurance experts will help you assess your options and get you set up.
Ontario insurers cannot use data from UBI programs to increase your rates or cancel your policy. However, traffic tickets, accidents, and driving convictions can still increase your rates.
No. Usage based insurance is only available in select provinces. They are Ontario, Alberta, New Brunswick, Nova Scotia, and Quebec.
If you own a vehicle in Ontario, you are required to abide by all vehicle registration regulations. Learn about car registration, renewing your plate stickers, rules, costs, and much more.