Usage Based Insurance (UBI)
Get smart savings of up to 25% or more with telematics and usage based car insurance!
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Want to pay less for car insurance? Who doesn’t? 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 car insurance recognizes your good driving habits. It rewards you in the form of discounts and cost savings. The better you drive, the more you can save.
All drivers can apply. Many save up to 25% on their premiums. So, you could save hundreds of dollars per year.
At ThinkInsure, our experts will help you compare usage based insurance options from multiple companies. We’ll help you get set up with a UBI program.
Below you will learn about:
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 car insurance is also called telematics. It’s referred to by other names, including pay-per-use insurance, UBI, pay-as-you-drive (PAYD), and pay as you go insurance.
It’s one of the newest ways to save money on Ontario car insurance. It is a completely voluntary program offered by some insurance companies.
It is an extension of telematics technology that determines premiums based on driver behaviour. It rewards safe drivers for their good driving habits with lower costs and discounts. Overall, the concept is based on the idea that if you are a good driver, you should be rewarded with lower insurance premiums.
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. Some may put more weight on specific driving actions than others. This can impact how they score you and how much of a discount is rewarded.
Most programs follow this general process. Your driving behaviours are assessed for a defined timeframe. The safer you drive, the more you will save on your premiums.
Usage-based insurance sets your rates based on your personalized driving behaviours. Standard policies are more based on demographics and perceived levels of risk.
There are two main ways to participate in a UBI program depending on the company:
Drivers can compare quotes for usage-based insurance from the top providers who offer it. See if using a driving device will help you save more. Just follow these easy steps:
Enter your postal code and some basic information.
Provide your driving and vehicle information.
See rates from the top insurers.
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Whether you have a UBI app or device installed in your vehicle, they work the same way. The device analyzes your driving behaviour and collects information about:
Your insurer 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 at renewal. How scores and discounts apply will vary by company. Talk with your insurer directly for more information.
The data collected by your provider measures your driving habits and assigns a discount. It is not used to change your current premium. It cannot be used to cancel your policy or refuse renewal. However, the data can affect your premiums when they come up for 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 UBI 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 can benefit all drivers who enrol in the program. Some of the key benefits include:
With any program or new technology, there are concerns to be aware of. There are two main concerns people have about enrolling:
As of February 2021, your premiums can increase if you are enrolled in a UBI program. Previously this was not the case. Under the program, your rates upon renewal are tied to your driving behaviour. If you drive safe, you’ll save. If you display risky driving habits, you could see a surcharge add to your policy. Currently, only the IntelliDrive program from Travelers Canada includes a potential surcharge for risky driving behaviours.
The overall goal of UBI pricing models is to more accurately price premiums based on individuals driving habits. So, the ability to increase premiums based on risky driving habits is in alignment with this goal.
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:
Compare quotes from the top insurers and see how much you can save with usage-based insurance.
Get StartedUsage-based auto 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.
UBI technology can help modernize the industry. It can shift insurance pricing to look at real-time performance, not what your past driving records say. Insurers can also base risk more than demographics. Premiums can be set specifically for a driver, not based on the driver category you fit within.
Telematics can also provide insights and data that can help speed up the claims process. There are a lot of ways it can help shape the future of insurance.
ThinkInsure is happy to offer usage-based insurance to drivers. Here is a list of insurance companies that offer usage-based insurance (telematics) products:
Through the Intact my Drive program offered by Intact Insurance, good drivers can be rewarded and save even more money. Save up to 25% and save 10% for enrolling in the program.
Learn more about the Intact my Drive savings program.
Save up to 25% by signing up for a UBI program with CAA Insurance. The less you drive the more you will save. This is ideal for people who drive less than 12,000 kilometres per year. Get more information about CAA MyPace.
Or consider CAA Connect and you can save up to 15%. You’ll receive an automatic 5% discount for signing up.
Travelers Insurance usage-based insurance program is IntelliDrive. Drivers can save up to 30% of premiums at renewal. Save 10% for signing up.
Through the My_BRIDGE program Pembridge Insurance gives drivers the opportunity to save up to 30% annually. You’ll get a 10%-15% discount for signing up.
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%. You will save at least 5% for signing up. Speak with our insurance experts to determine which UBI program is best for you.
Usage-based insurance is ideal for safe drivers and those who do not drive a lot. This includes:
If you fall into one of the above categories, or you are a safe driver with a clean record, UBI may be a good solution to help you save.
Telematics technology is another term to describe usage based insurance. The terms are interchangeable but they refer to the same type of coverage.
No. Not all providers offer UBI programs. There are a select few who offer programs. How the programs work can vary by provider. What is tracked and how discounts are applied depending on the company. Speak with our advisors to find out which insurers offer the program.
Usage-based insurance tracks your driving behaviours (speed, braking, acceleration). Pay as you go is a type of usage-based insurance that calculates your rates based on how much you drive. This plan is for people who drive less than 12,000 kilometres annually. Insurers will only let you sign up for one of the programs, not both. So, consider the benefits and saving potential of each before choosing the program.
No. Each insurer calculates UBI discounts using different data and metrics. The type of data, discount percentages, rules, and program details vary.
You can compare car insurance quotes to find the best telematics insurance plans. Our experts will help you assess your options and get you set up.
No. Usage based insurance is only available in select provinces. They are Ontario, Alberta, New Brunswick, Nova Scotia, and Quebec.
Yes. A surcharge can be added to your rates if you are deemed to be a risky driver based on the data collected from your UBI device. How much rates could increase will depend on the types of driving behaviours that are recorded.
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