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 car insurance recognizes your good driving habits. It rewards you in the form of discounts and cost savings.
All drivers can apply. Many save up to 25% on their premiums. So you could save hundreds of dollar 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, pay per use insurance, UBI, and pay as you drive (PAYD). It’s one of the newest ways to save money on Ontario car insurance. 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 with lower costs.
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 depending on the company:
Whether you have a UBI app or device installed in your vehicle, they work the same way. The device analyzes your driving behavior 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 for the specific time period. 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 to refuse renewal it.
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 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 :
No. Usage based auto insurance will not increase your 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 either.
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 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.
ThinkInsure is happy to offer usage based insurance to drivers. Through the Intact my Drive program offered by Intact Insurance, good drivers can be rewarded and save even more money.
Learn more about the Intact my Drive savings program.
How much you save will depend on your driving habits. The insurer and program details will also impact savings. Drivers can save up to 25%.
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 providers offer UBI programs. Speak with our advisors to find out which insurers 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.
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.
Read our insurance blog get helpful tips, information and news.
Do you have windshield insurance? Are you covered for a cracked windshield? Learn about the pros and cons of claiming a windshield repair or replacement.
Are you aware of how a speeding ticket in Ontario can affect your car insurance? Here we outline the types of speeding tickets, fines, and how speeding tickets can impact your policy.
Should you lease or finance your next new car? Read our helpful guide to understand the benefits and limitations of leasing vs financing to help you decide what's best for you.