CAA looks to Atlantic Canada for MyPace expansion

Published: October 23, 2018



The Canadian Automobile Association (CAA) has been a leader in introducing pay-as-you-go auto insurance in Canada, through its MyPace solution. Available in Ontario since July, MyPace allows motorists to purchase coverage per 1,000 kilometres travelled.

Now the CAA wants to expand MyPace’s reach to Atlantic regions of Canada. The auto insurance club has met with regulators in New Brunswick and Nova Scotia and there is interest in deploying the solution.

“We’re providing them more details [and] we’re going to be submitting a filing on it,” said Matthew Turack, president of CAA. “They’ve actually been really open and receptive in bringing that to the constituents in those provinces, and PEI will be the next province to follow.”

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.

“People really like that choice and the ability to be in control of their premiums, but also the flexibility of putting it on that vehicle that you may not drive all the time, and not needing to worry about taking coverages off in the winter and putting them back on in the summer fits with a lot of people’s lifestyles,” said Turack.


Consumers “will start with a base rate and be charged in 1,000-kilometre increments,” Turack explained before the product launched. 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.

“We continue to roll it out and train brokers and keep on-boarding new distribution agents as the months go on. We know that it’s a different product, it’s a different way of making sure consumers understand how pay-as-you-go works with auto insurance, what is the 1,000 kilometres, how does that work, and how do I see it on my app or my phone?”