By: Luke Jones, Published on July 16, 2018 02:15 PM, Last Update on July 16, 2018 11:16 AM
Back in May, we discussed CAA Insurance MyPace program, an auto insurance solution that brought pay-as-you-go car coverage to Ontario (and indeed Canada) for the first time. The company has now announced the program has been officially launched and is available to customers in the province for the first time.
MyPace is the latest auto insurance product in Canada to make use of usage-based insurance (UBI) through a telematics vehicle and driver monitoring device. The service was given regulatory approval by the Financial Service Commission of Ontario (FSCO) in February.
Insurers will assess the base rate on the same factors as any other personal auto insurance policy. The CAA will track driving habits and vehicle usage and increase rates for every 1,000 kilometres passed.
Once the insured vehicle passes 9,000 kilometres in a year, the price will move to being in-line with regular auto insurance premium rates. The value will be for consumers who drive their vehicles less than 9,000 kilometres each year.
CAA president Matthew Turack told CBC News “We see that low mileage drivers … deserve to pay less for their auto insurance premiums.”
On its website, the company says drivers could save up to 30% through the pay-as-you-go program if they use their vehicle for 5,000 kilometres during a year.