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

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Written by Kayla Jane Barrie Updated on September 11, 2025 min read

Usage-based car insurance saves good drivers money!

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

In a world of rising costs, usage-based insurance (UBI) offers a cost-saving solution. UBI programs reward safe driving with significant discounts, potentially saving you hundreds of dollars annually.

All drivers can apply. Many save up to 25% on their premiums. The better you drive, the more money you can keep in your pocket.

What you need to know about Usage-based Insurance:

The average annual cost of UBI is $2,180 in 2025.
Save up to 25% by enrolling in a usage-based insurance program.
UBI programs differ in how they operate and the discounts available. options to find the best fit for your needs.
Usage-based insurance (UBI) costs vary significantly, ranging from $150 to $219 per month, depending on factors like driving history and location.
All drivers can qualify for UBI programs.

What is usage-based insurance?

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.

These voluntary programs are one of the newest ways to save money on Ontario car insurance.

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.

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

Signing up for UBI offers immediate savings, even more so if you maintain good driving habits. 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 25% 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.

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.

How to get UBI insurance

Start by getting a quote for UBI insurance and compare it against other top providers. If you like the rate we'll get you insured quickly and enrolled in the program.

1) Start your quote

Enter your postal code and some basic information.

2) Enter your driving details

Provide your driving and vehicle information.

3) Compare quotes

See rates from the top insurers.

Choose your policy

Confirm the details with our experts and get insured.

Get Started

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What do UBI devices track?

female car driver stands next to her car and using apps.

Whether you have a UBI app or device installed in your vehicle, it works 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.

Types of UBI products

Thinkinsure offers a wide range of UBI products for drivers. Here’s an overview:

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.

How much does usage-based insurance cost in 2025?

The average cost of usage-based insurance is $2,180 annually. UBI premiums can vary widely depending on your driving history and location. This comparison highlights the range of annual premiums and monthly payments.

Based on our customer quote data, you could pay as low as $150 monthly with CAA MyPace to a high of $219 with Travelers IntelliDrive. Here’s a look at the average costs in 2025 for the top UBI providers:

Brand	Premium	Monthly payment
CAA MyPace	$1,801	$150
Travelers IntelliDrive	$2,631	$219
Aviva Journey	$2,196	$183
CAA Connect	$2,198	$183
Intact my Drive	$2,077	$173

The average cost of UBI coverage for the following providers is $181 per month.

How do the different UBI programs compare?

This chart compares five leading Ontario UBI programs, CAA MyPace, Travelers IntelliDrive, Aviva Journey, CAA Connect, and Intact MyDrive, highlighting key features and potential savings to help consumers choose the best option.

Provider	Key Features	Potential Savings
CAA MyPace	Pay-as-you-go model; Discounts for low mileage (under 12,000 km/year).	Varies based on driving habits and mileage.
Travelers IntelliDrive	90-day program; Smartphone app monitoring; Up to 30% savings at renewal for safe driving; potential 10% surcharge for risky driving.	Up to 30% (or a 10% surcharge)
Aviva Journey	Initial 10% discount; Up to 20% savings next year for safe driving; potential 5% increase for risky driving; rewards for safe driving.	Up to 20% (or a 5% increase)
CAA Connect	Save up to 15% by taking part in the program; receive a one-time 5% enrollment discount for signing up; CAA members could see savings of around 20%.	Up to 20%
Intact my Drive	Up to 30% savings; automatic 10% initial discount; 6-month updates; monitors various driving behaviours.	Up to 30%

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 usage-based insurance?

Pay-per-use insurance can benefit all drivers who enrol in the program. You’ll save money and be more conscious of safe driving practices. 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 you 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.

Summary of pros & cons of usage-based insurance

Pros	Cons
Fairer Premiums: UBI can reduce biases based on age, gender, and other demographics, offering potentially lower premiums for safe drivers regardless of these factors. Young, inexperienced, or previously convicted drivers can demonstrate safe driving habits to lower their costs.	Privacy Concerns: Constant monitoring can cause stress for some drivers.
Safer Driving: The system encourages safer driving habits, benefiting all road users.	Multi-Driver Issues: The technology may not accurately distinguish between drivers, potentially affecting premium discounts if multiple people use the vehicle. While manual overrides exist, they require diligence.
Premium Savings: Pay-as-you-go models mean you only pay for the kilometres driven.	Premium Increases: Insurance companies can now raise premiums based on poor driving behaviour (though not all do).
Theft Recovery & Accident Support: Tracking capabilities can aid in vehicle recovery after theft and provide evidence in accident investigations.	Minor Offence Penalties: Even minor speeding infractions can negatively impact discounts.
Parental Controls: Many apps offer features to monitor young drivers.	Mileage Changes: Increased driving due to address changes can reduce discounts. Accurate reporting of addresses is crucial.

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 safely, you’ll save. If you display risky driving habits, you could see a surcharge added 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.

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.

While the terms "usage-based insurance" (UBI) and "pay-as-you-go" (PAYG) insurance are often used interchangeably ,there are important distinctions:

Usage-Based Insurance (UBI): This broader category encompasses insurance policies where your premium is influenced by your driving behaviour. Insurers track various driving metrics (speed, acceleration, braking, mileage, time of day, etc.) using telematics (a device or app). Based on this data, your premium may be *discounted* if you're a safe driver or increased if you exhibit risky driving habits. The premium isn't directly tied to the exact number of miles driven, but rather reflects your overall driving score.
Pay-As-You-Go (PAYG) Insurance: This is a specific type of UBI where your premium is directly and proportionally related to the number of kilometres you drive The more you drive, the higher your premium; the less you drive, the lower your premium. While driving behaviour might be monitored, the primary factor determining your cost is the distance traveled, ideally under 12,000 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.

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:

Millennials are 44% more likely than the average consumer to use a device.
Millennials whose income exceeds $75,000 are 79% more likely to use these programs.
U.S. household participation in UBI policies is on the rise, growing from 13% in 2013 to 20% in 2015.
By 2020, 90% of new cars will have onboard telematics technology.

Here are some additional UBI statistics:

CAA Insurance mentions the number of new CAA MyPace policies between April and December 2020 increased by close to 300% compared to the year prior
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. In 2022, the Insurance Bureau reported that the demand for usage-based auto insurance in Canada has increased by almost 20% as premiums continue to rise.

That same report found that UBI quotes increased by 18.22% compared to the same period last year, with a 54.64% month-on-month increase in drivers opting for a UBI discount.

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.

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% by 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 depends 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?

Usage-based insurance is currently available in Ontario, Quebec, Nova Scotia, New Brunswick, Alberta, and Prince Edward Island. British Columbia is monitoring its adoption, while Saskatchewan, Manitoba, and Newfoundland and Labrador have no immediate plans to implement it.

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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Sources

* Based on the difference between the average lowest premium and the overall average premium for estimates completed from January 1, 2024, to April 15, 2025, for drivers with a clean driving record.

** Estimated prices are based on data entered by drivers with a clean driving record on ThinkInsure.ca from January 1, 2024, to April 15, 2025.

*** Customer quotes data entered for each year by drivers with a clean record from Ontario and G licence.

Kayla Jane Barrie

Digital Content Writer

Kayla-Jane has been a content writer with ThinkInsure since 2020. She creates insurance content for auto, home, and commercial. Kayla-Jane has a diploma in Journalism.

Insurance Blog And News

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man wearing red jacket smiling while looking outside car window

2025-09-08

Usage-based Insurance (UBI)

Get smart savings of up to 25% or more with telematics and usage-based car insurance!

Compare quotes from the leading providers

Usage-based car insurance saves good drivers money!

What you need to know about Usage-based Insurance:

What is usage-based insurance?

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

How does usage-based insurance work?

How to get UBI insurance

1) Start your quote

2) Enter your driving details

3) Compare quotes

Choose your policy

5 star insurance

What do UBI devices track?

Types of UBI products

Intact my Drive

CAA MyPace and Connect

Aviva Journey

Travelers IntelliDrive

Pembridge Insurance My_BRIDGE

How much does usage-based insurance cost in 2025?

How do the different UBI programs compare?

How is the data from telematics devices used by insurers?

What are the benefits of usage-based insurance?

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

Summary of pros & cons of usage-based insurance

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

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

Usage-based insurance statistics

Usage-based insurance myths

Get a usage-based insurance quote

Usage-based insurance is the future

Usage-based insurance FAQs

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

Is usage-based insurance for me?

What is telematics insurance?

Do all companies offer usage-based insurance?

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

Are all UBI programs the same?

How can I get telematics car insurance quotes?

Is usage-based insurance available across Canada?

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

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

Kayla Jane Barrie

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