Does being a good driver mean you can save on your car insurance?

Recently, the insurance landscape has evolved to include usage-based insurance as a way to change how insurance premiums are calculated and offer savings to consumers for good driving habits. Although usage-based insurance already exists in the United Kingdom and United States, a few insurance companies are starting to offer it in Canada. We break down what you need to know and whether it’s right for you.

What is usage-based insurance?

Usage-based insurance (UBI) or sometimes referred to as telematics, is a way that insurance providers offer insurance premium discounts for safe driving habits. A device is installed in your vehicle that tracks your driving habits to determine how much you can save on your insurance premium.

While some conspiracy theorists believe the device acts as a GPS and will track and monitor where you drive, this isn’t the case. Usage based devices for insurance only monitor:

• Acceleration – Are you accelerating on the gas to make the next light?
• Hard braking – Are you following too close and frequently slamming on the brakes?
• Time of day – If you’re driving during 12 a.m. to 4.am, you could be more likely to get into an accident.

Is it right for you?

UBI allows drivers to have some control over what they pay for auto insurance. If you’ve adopted some bad habits you were unaware of, using UBI can keep driving safely top of mind and gives you insight into your own behaviour.

Plus, there’s the added benefit of receiving insurance discounts for being a better driver. Your premiums will never increase based on the data collected. The purpose is to offer better discounts for safe drivers.

Get rewarded now for good driving habits.

If you live in Ontario, Intact Insurance offers the My Driving Discount™ with an instant 10% off when you install the free money-saving device. As your vehicle monitors your driving habits, you can save up to a further 15% off your premium at renewal.

There’s also an online dashboard you can log into at any time to review your habits and make sure you’re on the right path to getting the discounts you want. Intact Insurance will extend UBI into Alberta later in 2015.

Talk to one of our local brokers on how you can save up to 25% on your insurance today with the Intact My Driving Discount.