By: Luke Jones, Published on July 17, 2018 10:02 PM, Last Update on July 17, 2018 07:04 PM
A new insurance solution is becoming the hot ticket in Canada and it is probably going to be the future of auto insurance. You can call it usage-based insurance (UBI) or pay-as-you-go insurance, both mean the same thing. This new method promises to lower your premiums, but will you have to give up your data in the process.
The simple answer is year, but is it ultimately worth it?
If you are unfamiliar with UBI/pay-as-you-go coverage, it is a form of auto insurance where motorists pay only when they use their vehicle and furthermore can gain further discounts by the way they drive. Insurance companies acquire driver data through in-car devices known as telematics, which assess how much a vehicle is used, how fast it goes, distance travelled, and other factors.
Using a vehicle less and driving it well can result in major discounts. UBI through telematics monitoring have already launched widely in other countries and found much success, most notably in the United Kingdom and Italy.
Canada has been relatively slow to adopt the new solution, but auto insurance products have started arriving this year.
Telematics are certainly an enticing proposition… if you can drive properly you are guaranteed to receive discounts. However, the trade for that money saving potential is letting insurance companies essentially monitor you and collect data. In a world of major data breaches and significant privacy concerns, some customers are unsure about this exchange.