Usage Based Insurance (UBI): Save 25% with Telematics Car Insurance

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Usage-based car insurance saves good drivers money!

illustration of phone with usage based insurance app

Usage-based insurance is increasing in popularity. With higher insurance rates, inflation, and a higher cost of living, people are looking for ways to reduce their insurance bills.

Want to pay less for 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.

All drivers can apply. Many save up to 25% on their premiums. So, you could save hundreds of dollars per year. The better you drive, the more money you can keep in your pocket.

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 :

How Usage-based insurance works
The benefits of enrolling in a UBI program
The types of UBI programs available from insurance companies
Get answers to common questions about usage-based insurance

Why sign up for a usage-based car insurance program?

There are a number of advantages to signing up for a UBI program with your insurer:

Immediate savings: Many insurers offer an immediate discount just for signing up.
Even more savings: Get up to 30% off your rates for good driving habits.
It’s easy to set up: Plug the data collection device into your vehicle. Or download the app from your provider.
Good driving = savings: Get rewarded for the good driving habits and safe driving you already do.
You're in control: The amount you pay is based on how you drive. Take more control over your insurance costs.

What is Usage-based insurance?

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’s becoming increasingly popular with drivers. 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 cheaper insurance premiums.

How does Usage-based insurance work?

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:

Using a UBI app: Simply download it onto your smartphone. The app will track your driving data in real-time.
Installing a device in your vehicle: Your insurer will mail you the device to install in your vehicle. Once installed, it will track your data. You can view performance on the company website or through an app.

What do UBI devices track?

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 :

Braking and acceleration: The speed at which you speed up and slow down is a strong indicator of safe driving habits. It's important to gradually increase and decrease your speed.
Time of day you drive: There is an increased risk associated with driving late at night, particularly between 12 am and 4 am. Avoid driving during these hours if possible. Also, driving during rush hour consistently can affect your discount.
How you corner: The speed at which you change directions is a safety indicator. Slow down and take corners at a low speed.
Your speed: Always drive at a speed that is relative to the posted speed limits. Your device has a GPS that tracks if you follow the speed limit.
Phone use: The device will be able to track if you are using your phone while your vehicle is in motion. Avoid interacting with your phone when driving and avoid other distracted driving practices.

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.

How is the data from telematics devices used by insurers?

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.”

What are the benefits of using Pay-per-use insurance?

Pay-per-use insurance can benefit all drivers who enrol in the program. Some of the key benefits include :

Instant savings: Most insurers will issue you an immediate discount for enrolling in the program.
Helps drivers with higher rates save: Certain types of drivers traditionally pay more because of a lack of experience. UBI can help new drivers and young drivers reduce how much they pay.
It encourages safe driving: Insurers reward good drivers for safe driving practices.
Access to driving data: It provides drivers with tips and information about their current driving practices. You can use this information to improve your driving.
Personalization: Your rates will better reflect your current driving habits. You are assessed on how your drive.
Accident investigation assistance: It can assist with accident investigations by helping to determine who was at fault. This could help resolve claims faster.

Does telematics technology and the UBI program have any potential drawbacks?

With any program or new technology, there are concerns to be aware of. There are two main concerns people have about enrolling:

Privacy: There are concerns that the data collected could be used by third parties. There is also the worry about a data breach. Make sure your insurer requires consent to use or share your data with third parties.
How data is analyzed: Some worry that the data collected and interpreted by insurers could affect your premiums. The way each insurer uses the data they collect will vary. Some place more emphasis on some driving habits than others. Be clear about how the data is used and how it could affect your rates before you sign up.
Context: The context of what telematics records can be called into question in some instances. For example, you slam on the brakes because an animal ran out into the road in front of you. Even though you were performing a safe action, it would be recorded as unsafe by the device. But one instance of “unsafe” actions is unlikely to affect your score. Performance is scored over an extended timeframe.

Can my premiums go up if I have Usage-based car insurance?

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 statistics

Usage-based insurance is gaining traction among younger generations, particularly among millennials, according to a report by Neilson. According to the report :

CAA Insurance – the number of new CAA MyPace policies between April and December 2020 increased by close to 300% compared to the year prior.
Millennials are 44% more likely than the average consumer to use a device.
By 2020, 90% of new cars will have onboard telematics technology.

Here are some additional UBI statistics:

According to a report by IHS Automotive, globally distributed UBI policies will balloon to 142 million by 2023, up from 12 million in 2015 and a mere 7.7 million in 2014.
By 2024, North America is projected to hold 35% of the UBI market, according to Global Market Insights.
The UBI market is expected to be worth over 100 billion USD by this time. Compare this to 34 billion today.
According to research curated by Insurance Institute, 81% of drivers and 93% of millennials would be open to sharing data to save. 84% have interest in a trial to see the discount they could get before signing up.
As of 2018, there were more than 5 million UBI policies worldwide. This number continues to rise.

Usage-based insurance myths

With any new product, there will be a certain amount of misinformation and myths. Common UBI myths include :

It tracks where you drive.
Data will be used to prove you were to blame for an accident.
You will be penalized if you drive at certain times.
Telematics interferes with your car.
Installing a UBI device will void your car warranty.
Cars with telematics are a target to be hacked.
Insurance companies gather additional data about your driving.

Usage-based insurance is the future

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.

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 Usage-based insurance products

ThinkInsure is happy to offer usage-based insurance to drivers. Here is a list of insurance companies that offer usage-based insurance (telematics) products:

Intact my Drive

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.

CAA MyPace and Connect

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. you can save up to 15%. You’ll receive an automatic 5% discount for signing up.

Aviva Journey

Automatically save 10% on your insurance rates in the first year with Aviva Journey. Safe drivers can save up to 20% on premiums each year after. If you are already an Aviva customer, simply contact your broker to sign up for the program.

Travelers IntelliDrive

Travelers Insurance usage-based insurance program is IntelliDrive. Drivers can save up to 30% of premiums at renewal. Save 10% for signing up.

Pembridge Insurance My_BRIDGE

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.

Usage-based insurance FAQs

How much will I save by using usage-based insurance?

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. Compare car insurance quotes online to see how much you can save or speak with our insurance experts to determine which UBI program is best for you.

Is usage-based insurance for me?

Usage-based insurance is ideal for safe drivers and those who do not drive a lot. This includes:

Students and new drivers
Retirees
People who work from home
People who commute on public transportation
People who do not drive a lot (Pleasure driving only)

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.

What is telematics insurance?

Telematics technology is another term to describe usage-based insurance. The terms are interchangeable but they refer to the same type of coverage.

Do all companies offer usage-based insurance?

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.

What’s the difference between usage-based insurance and pay-as-you-go insurance?

Usage-based insurance tracks your driving behaviours (speed, braking, acceleration). Pay as you go insurance 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.

Are all UBI programs the same?

No. Each insurer calculates UBI discounts using different data and metrics. The type of data, discount percentages, rules, and program details vary.

How can I get telematics car insurance quotes?

You can compare quotes to find the best telematics insurance plans. Our experts will help you assess your options and get you set up.

Is usage-based insurance available across Canada?

No. Usage-based insurance is only available in select provinces. They are Ontario, Alberta, New Brunswick, Nova Scotia, and Quebec.

Can my rates increase with a usage-based insurance plan?

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.

Compare your usage-based insurance options. Get a quote today

Get rewarded for safe driving practice with a usage-based insurance plan. Compare UBI quotes today and find the right plan to help you maximize your savings.

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2025-06-22

Usage-based Insurance (UBI)