Usage-based car insurance quotes

It can be a great way to save on car insurance for Canadians, but it really depends on whether or not you honestly think you can consistently be a good driver.

For the most part these programs do not hurt you and can only help to lower your monthly rate, but there were legislative changes in Ontario and Alberta in 2021 that allowed insurance carriers to introduce penalties for poor driving behaviour captured in usage-based insurance programs. In these instances, you could see your rate increase based on your driving behaviour.

Simply put, if you honestly think you are a great driver than opt-ing into telematics is a great way to save anywhere from 10-30% on your car insurance premiums.

Yes, it could but it will vary by the provider as not all usage-based programs penalize drivers currently.

In Ontario and Alberta the government approved auto insurance companies for the right to apply penalties to poor drivers who participate in usage-based insurance programs. The penalties will vary by provider, so be sure to inquire about the rules before signing up for a usage-based insurance program.

Typically the savings will vary by both the provider and the driver, but in general you can save up to 30% of your premium for safer driving.  Based on the average cost of car insurance in Ontario, which rings in at $1,505, according to IBC, you could save $451.50 a year, or $37.63 per month.

By simply applying for a usage-based insurance policy you are usually eligible for a 10% telematics discount to start. Depending how you prove yourself as a driver after that will determine if you see any further discounting.

Yes, you can unplug the device or disable the app, but you won’t be taking advantage of any potential discounts. Be honest with your insurer, if you’ve signed up for a telematics discount, and you’re not using the app, they can cancel your policy due to misrepresentation. 

UBI is for car insurance in Ontario, Quebec, Nova Scotia, New Brunswick and Alberta. 

Saskatchewan scrapped its testing program. British Columbia legislators are taking a wait-and-see approach. PEI, Newfoundland, and Manitoba have no plans to make it available. 

Many newer cars have telematics built in for many reasons beyond insurance.

• HondaLink, for example, also allows their touring and elite models of cars to be remotely started, view if doors are locked, and other remote diagnostics (tire pressure, gas level, etc.).
• Volkswagen’s car-net app offers text notifications if a child is out past their curfew, check diagnostics, and track the car if it’s been stolen. VW charges for their telematics services with a subscription model. With a new car (2015 or later), you can assume your car has telematics and take advantage of the smart features it offers. 

If you are an individual who doesn't drive often then having a solution that fits you pay as you need lifestyle would be a great fit. Alternatively, telematics & UBI products are a great fit for both young & old driver who are looking for ways to lower the price they pay for insurance. Telematics data tracking will help prove over time that you are a competent safe driver, resulting in premium reductions. As long as you obey the rules of the road you should see a benefit over time.

Canadians are considering usage based insurance more than ever before. Telematics usage is on the rise with a 20% increase in interest YoY. Recent quote data shows the rise in interest, as more Canadians appear open to adopting a usage-based insurance program.

The rise in telematics adoption appears to coincide with the market increase in the cost of car insurance. The cost of auto insurance is expected to increase by 7-8% in 2023, due to a number of market factors such as inflation, theft and fraud. Usage-based insurance is seen as a potential solution to help lessen the burden of rising prices. The potential discounts (10-30%) you can earn from a usage-based program are proving to be a valuable aide during a tough economic time.