- Digital pink slips: available in Ontario, Alberta, New Brunswick, Newfoundland and Labrador, Nova Scotia, PEI, Yukon, and the NWT (Quebec with some conditions), letting drivers show proof of insurance on their smartphone instead of a paper slip.
- Usage-based insurance (UBI) via smartphone telematics: pay-how-you-drive tracks acceleration, braking, and turns for savings up to 30% (varies by carrier), while pay-as-you-drive (CAA MyPace) scales premiums to mileage, capped at 12,000 km/year for low-mileage drivers.
- Smart home security devices: monitored alarms and cameras, plus doorbell cameras and smart locks, deter break-ins and can unlock discounts, with monitored/ULC-certified systems earning the biggest savings (roughly 5-20%).
- Risk-prevention devices: smart lighting/window coverings simulate occupancy to deter theft, while water leak sensors with shut-off valves and smart fire/CO alarms prevent damage and notify you or emergency services remotely, sometimes earning discounts up to 15%.
- Discounts vary and don't always stack: smart home devices can earn 2-20% per device or category depending on insurer and province, so it's worth checking directly with your insurer which devices offer the best combined savings.
How smart technology devices can save you money on insurance
See how much you could save on your auto insurance with a telematics discount. Compare quotes and customize your coverage online today.
Let's face it, the cost of living is only rising each and every year, which has caused many of us to rethink our budgets – this includes the cost of insurance products like auto or property. For example, many car owners are shifting their behaviours in an attempt to save - this includes driving less, cancelling/dropping or reducing coverage on vehicles, switching to one car households, and of course continually shopping the market for the best rates on auto insurance.
This gradual shift has been coming for a long time and the industry has been working on various solutions to help meet the financial demand of it's consumers. One opportunity has been embracing digital solutions to offer immediate relief to drivers across Canada. Insurance and technology, or what the industry calls “Insurtech,” comes in many forms, from apps and tools to digital rewards programs. As an insurance consumer, it’s time to get in the driver’s seat and be in the know so you can uncover new time and financial savings opportunities to make your life a little easier.
Key takeaways on smart insurance technology
Smart auto insurance apps to make your life easier
You can now forgo rummaging through your glove box to uncover your insurance slip. Digital insurance pink slips are now available in Ontario, Alberta, New Brunswick, Newfoundland and Labrador, Nova Scotia, Prince Edward Island, Yukon, and the Northwest Territories, plus Quebec with some conditions. So, if you reside in one of those regions, you can download the app and pull up the slip on your smartphone anytime. For the privacy conscious, keep the phone in your hand when you need to display your pink slip to anyone.
You can also use your smartphone as a telematics device for usage-based insurance (UBI). This type of insurance is where your premium is tied to how, when, or how much you actually drive, rather than just fixed rating factors like age, location, and vehicle type. For example, if it is pay-how-how-you-drive, it measures driving behaviours like acceleration, turn handling, braking intensity, and distance travelled. Depending how well you drive, you may see savings up to 30% on your insurance premiums (varies by carrier), which is especially helpful for young drivers who face notoriously high costs due to lack of experience. Your other option is pay-as-you-drive, which is a CAA program called MyPace that scales your premium based on mileage driven, but there is a limit of 12,000 km per year. This coverage is specifically designed for low-mileage drivers.
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Smart home insurance devices to reduce your risk
Smart devices are increasingly being recognized and promoted by the insurance industry. In fact, investing in smart home devices can reduce your home insurance rates by mitigating risk and reducing the chance of making a claim. Sometimes, they can even unlock additional discounts offered by some carriers.
Monitored security systems and cameras are always welcomed by insurers and often are incentivized by discount opportunities, but beyond these there are other home monitoring devices that are beneficial. Doorbell cameras and keyless smart locks can deter thieves, preventing burglary attempts or vandalism like a broken window. Smart lighting and window coverings can make it look like you’re at home, even when you’re not. Due to the 'smart technology' within these devices, they can go on and off in different rooms at different times each evening, further deterring the wannabe thieves.
There are water leak sensors you can pair with intelligent shut-off valves, which can prevent flooding from a burst pipe. A smart fire alarm or CO detector can send notifications to your phone, so you can remotely dispatch emergency services. These devices can also unlock discount savings as they help to reduce the risk of water damage and fire.
There are some nuances to how the industry treats smart home technology and the discounts they may provide. Smart home devices could earn anywhere from 2-20% per device or category, though it varies a lot by insurer and province and these discounts don't always stack. If the technology is monitored by an accredited 3rd party source the discounts can be higher. for example, monitored security systems (alarms, cameras) tend to offer the biggest discounts, roughly 5-20%, especially if the system is ULC-certified. Water leak detection with shut-off sensors are also well rewarded, sometimes up to 15% depending how preventative the technology is. If you are interested in smart home monitoring it's best to inquire with your insurer to find out which devices offer the best discounts.
The bottom line
Technology can help make our lives easier and safer. Through smart home automation and car insurance apps, you can make smarter decisions that save you money. Instead of worrying about what could happen, be proactive. Insurance is for the sudden and unexpected – it’s not meant to be a maintenance plan.