Good drivers in Waterloo Region and those who are driving significantly less than prior to the pandemic, are seeking alternate auto insurance options. Insurance companies are seeing the changing habits and behaviours of drivers, and have expanded the choices to meet the demand.
For drivers who have eliminated their commute to work and those who have reduced their need of full coverage with cancelled travel plans, could look at a “pay as you drive” option. CAA MyPace
launched a few years ago, targets low mileage drivers (up to 9,000 km per year), and is available to Staebler Insurance clients. Click here to Request A Quote
The MyPace option is based on how much you drive in a given year. It begins as low as 5,000 kilometres per year and goes up in 1,000 km increments. This option makes a lot of sense for occasional drivers who may only run short errands a couple times a week and don’t plan any long road trips.
For this program, CAA requires the use of telematics or UBI (usage-based insurance) to track driving habits. This helps determine insurance rates based on your actual usage of your vehicle. It records things like: how far you drive, what times of day you normally drive, what traffic conditions you normally drive in, and other data based off of your device or smartphone’s location.
Those who practice safe driving techniques can also benefit by the use of telematics. In addition to distance travelled, it can detect speed, as well as when and how you accelerate and brake while driving. Some devices can even record if you are using your smartphone while driving. This data is then used to determine a rating based on the risk level of you the driver, and can influence your premium. The better your rating, the lower your premium could be.
While UBI may not be for everyone, there are many people who can still benefit from a UBI policy. For those who don’t drive often, the premium charged will decrease with the lower usage of the vehicle. It can also encourage people to find alternate ways to get around (biking, walking, public transportation, etc.) which in turn also have a positive effect on the environment and physical/mental health.
Keep in mind that discounts are offered for good driving behaviour. However, the Financial Services Regulatory Authority (FSRA) recently removed some rules which previously barred insurance companies from using UBI data to apply a surcharge to insurance premiums.
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Staebler Insurance is a general insurance broker specializing in auto insurance, home insurance, small business and commercial insurance. Staebler brokers proudly serve Kitchener, Waterloo, Cambridge, Guelph, Stratford, Wellington County, Listowel, Fergus, Elora, and southern Ontario.