By: Luke Jones, Published on August 30, 2018 09:21 PM, Last Update on August 30, 2018 06:22 PM
Canada has been slower than other markets to adopt telematics and usage-based insurance, but now the model is becoming more used. As insurers advertise new solutions, customers are becoming more aware and warming to telematics.
To emphasize this, belairdirect has published the results of a survey that found 53% of polled Canadians say they would use an application to monitor their driving in exchange for potential auto insurance discounts.
The data suggests customers are swiftly becoming more engaged with usage-based insurance. Earlier this year, a study found consumers were concerned about privacy and not sure on telematics. In December last year, Wawanesa suggested customers in Canada were not ready to embrace telematics monitoring.
Wawanesa Insurance chief strategy officer Carol Jardine said, “Our brokers are advising us that our customers are not fans of telematics.”
The new belairdirect survey shows the corner is being turned as the number of available UBI solutions has increased. The survey finds telematics is wanted amongst consumers of all demographic age groups:
Last month, CAA released its MyPace program in Ontario. The solution represents the first pay-as-you-go auto insurance product in Canada. 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.