For a few years, drivers in some Canadian provinces have been able to earn discounts on their auto insurance premiums by driving safely — or not driving much — thanks to apps or telematics devices that track their behaviour behind the wheel.
But recent rules changes mean that in a growing number of jurisdictions drivers could also see their premium increase if the tracking in so-called pay-as-you-drive programs reveals risky behaviour like speeding, abrupt braking or accelerating, or texting and handheld calls while the vehicle is in motion. Similarly, with pay-per-kilometre insurance, drivers could see surcharges for exceeding a certain number of kilometres driven in a certain period of time.
In November, Ontario’s insurance regulator announced insurers would be allowed to charge more for risky driving and high kilometres revealed by apps and telematics devices. In Quebec, where private insurance covers property damage caused or incurred by drivers, insurers are also allowed to adjust premiums.
Alberta approved the ability to increase premiums for insurance programs that rely on tracking in December as part of a broad auto insurance reform, with the new rules expected to come into effect in early 2022.
And some form of telematics insurance are also available in New Brunswick, Nova Scotia and Prince Edward Island.
READ MORE HERE AT GLOBAL NEWS
The excerpted article was written by THE GLOBE AND MAIL
I see ads on American TV for pay-per-mile insurance, where you just pay for how much you drive. The ads sound great; it really makes sense, especially now. Is that really how it works? Do any Canadian companies offer this? If not, why? – Rajinder, Ottawa
In Canada, we don’t have the option to buy insurance by the mile – or in our case, by the kilometre. The technology is already used here, but the rules in most provinces don’t allow it. “The regulations in the United States allow for companies to price per mile,” says Ryan Stein, executive director of auto-insurance policy and innovation at the Insurance Bureau of Canada (IBC). “In Canada, our regulators decided they want to take a more cautious approach.”
Pay-per-mile insurance uses a telematics device that’s attached to your car and sends information to the insurance company – including mileage, when you drive, speed and how hard you brake.
Pure pay-per-mile insurance, offered by two U.S. companies, charges you a base monthly rate and then, on top of that, charges you for the actual distance you drive.
“There’s a monthly base rate,” Stein says. “So if you’re paying $200 a month now, your base rate would be a fraction of that.” For instance, on the website for Metromile, a U.S. company that only offers pay-per-mile insurance, a fictional 40-year-old male driving a 2015 Honda Fit in Seattle would pay a base rate of US$53 a month. Then there would be charges of 6.7 US cents per mile up to 250 miles (402 km) per day. So, driving 50 miles (80 km) a month would raise the total bill to US$56. At 200 miles (322 km), it would be US$67.
TELEMATICS FOR DISCOUNTS ONLY
Since 2012, several Canadian insurance companies have offered telematics, but, in most provinces, they can only use them to give you a discount – not to set your rates. “You get priced as you always would, but you’ll get a discount if you drive safely,” Stein says.
Stein says provincial insurance regulators in Ontario, Alberta, Nova Scotia and Newfoundland should change the rules to allow pay-per-mile insurance. That means they can’t use telematics data to add to your bill.
“I don’t believe there are rules against it in Quebec or New Brunswick, but most of the insurance companies are national,” Stein says. “If it were allowed in more of the major markets, that could have implications for the rest of the country.” Pay-per-mile insurance “isn’t for everybody,” because higher-mileage drivers wouldn’t save anything – but it would make sense for people who don’t drive often, Stein says.
“Look at what happened during the pandemic – people went from commuting every day to barely driving,” Stein says. “If you had pay-per-mile insurance, your premium would just automatically be lower without you having to let your insurance company know.”
PAY AS YOU GO?
In Ontario, CAA Insurance has been offering MyPace, a pay-as-you-go plan, since 2018. It’s not exactly pay-per-mile, but it lets you pay a base rate, and then pay a fixed amount for every 1,000 kilometres you drive.
The company calculates your premium the same way it normally would – based on your car, driving record, age, gender, annual mileage and where you live – but breaks it into 1000-km segments. For instance, if you normally pay $1,100 per year, you would pay an annual base rate of $200 and then $100 for every 1,000 km, CAA says. You get notices as you get closer to the 1,000 km threshold. Once you’re over, you automatically buy the next 1,000 km. “If you only drive 5,000 km in a year, you’ll save 30 per cent,” says Matthew Turack, president of CAA Insurance. Turack recommends the plan for people who drive less than 9,000 km a year. If you drive more than than that, you will pay a surcharge – CAA says it’s about $8 or less – for every additional 1,000 km.
“This fee will put you above the price of our traditional auto insurance policy,” CAA’s website says.
Turack says rules aren’t the reason CAA Insurance chose pay-as-you-go instead of pay-per-mile. “We’ve never had any resistance from the regulator,” Turack says. “CAA Insurance didn’t go to billing for individual kilometres because of feedback we saw in the States, where consumers were surprised at their bills at the end of the month.”
READ MORE HERE:
Waterloo, ON, Canada, Oct. 08, 2019 (GLOBE NEWSWIRE) — IMS, the insurance telematics technology arm of Trak Global Group (TGG) is now positioned to offer North American and European insurers unprecedented access to the learnings from driver data via TGG’s award-winning Carrot Insurance brand.
Carrot’s direct interaction with its installed customer base has driven innovative product development, including the latest telematics smartphone based “Better Driver” app, which recently won the prestigious 2019 UK Insurance Times Technology and Innovation Award for Best Customer Mobile app.
“Carrot’s award-winning technology has modified driver behavior in a positive way, and we are eager to make our learnings accessible to insurers,” said Nino Tarantino, CEO- Americas, IMS.
Accessing this critical data will enable insurers to:
- Improve policyholder engagement
- Offer a reward platform that builds loyalty
- Motivate safer driving behavior
- Realize the positive impact on combined ratios
“We have developed and tested our insurance telematics propositions with our own Carrot customers so our insurer partners don’t have to,” Tarantino continued. “No other telematics service provider has this kind of direct-to-policyholder experience and insight, but we do through Carrot, and we want to share what we have learned with the insurance companies we work with.”
Carrot, which launched in 2012, has since overseen a 42% reduction in the number of accidents among its customer base, thanks to its pioneering technology and an active risk management program, including rewards for good driving, which has turned the insurance experience on its head for policyholders.
Carrot’s policy has also built customer loyalty. The company has returned $5M to customers during the past seven years and the rewards program, in turn, offers a built-in incentive for consumers to check their status and driving feedback. In doing so, frequently, consumers drive better and safer.
“Carrot’s telematics program has made a previously unprofitable market segment for us profitable again,” said Ed Rochfort, Managing Director of Carrot Insurance. “By analyzing telematics data we’ve been able to dramatically improve our risk pricing while reducing the cost of claims. A huge win by all accounts.”
“We’re making big improvements in reducing the cost of motor claims for our insurer clients, saving them time and money by providing indisputable proof of what actually happened in an incident. We believe Carrot’s claims data analytics has reduced CORs for our insurer partners by 7.7%,” Tarantino said. “In turn, our insurance customers are using these same insights from Carrot to create their own digital insurance strategies.”
For further detail on the Carrot difference, insurers can download IMS’ Carrot case study to access learnings and insights from this award-winning offering: https://www.intellimec.com/carrot-insurance-rewards-case-study. Alternatively, insurers can contact IMS for more information at: https://www.intellimec.com/carrot-insurance-insights.
IMS, part of Trak Global Group, is a leading connected car and telematics solutions provider, delivering services and analytics to insurers, governments and enterprises. IMS is the developer of the cloud-based DriveSync® connected car platform which has received industry acclaim for its ability to offer customers a data source-agnostic, multi-device strategy for service provision.
About Trak Global Group
Trak Global Group (TGG) is one of the world’s largest telematics companies, gathering and interpreting data from connected devices to help organizations manage driver and vehicle risk. The group has long-standing partnerships with global insurers, leading motor manufacturers, corporate fleets and daily rental companies and is the UK’s largest insurance telematics business.
In late 2018, TGG acquired IMS, the 3rd largest insurance telematics business in North America. In addition to its partnerships with major insurers, it has more than 130 patents associated with connected car services and has pioneered the use of telematics technology for Road Usage Charging in the United States.
In September 2019, private equity house Three Hills Capital Partners took a significant minority stake in the business, providing in excess of $50 million in growth capital.
About Carrot Insurance
Carrot Insurance, also part of TGG, is a UK-based, award-winning telematics insurance broker specializing in novice drivers. In 2015, Carrot received the Prince Michael International Road Safety Award for its work in reducing young driver accident frequency, and in 2015, it launched Better Driver, an app-based product representing the UK’s first mass-market usage-based insurance product.
For more information on IMS:
Attention tech, insurance, housing and auto journalists.
Many of us can’t live without our smartphones. They’re in our pockets, purses and bags and we check them often for communication, information, or just force of habit. Now your phone can become the ultimate home and auto insurance tool by downloading the new State Farm Canada App – www.statefarm.ca/sfcanadaapp – for free!
Telematics, Alert and easy access to Online Services all at your fingertips
The all-new State Farm Canada App includes Telematics* – a fully mobile telematics insurance program. Telematics can help you to become a safer driver by using your smartphone to track and improve your driving in real-time and then rewards you with savings of up to 25% on your auto insurance premium at renewal. – www.statefarm.ca/insurance/auto/discounts/telematics
The app also allows you to manage your home and auto insurance easily. By logging on to your Online Services account directly from your phone you can receive instant access to your insurance policies, obtain valuable information and tips, file a claim or get an online quote, anywhere, anytime, 24/7.
And for even more peace of mind, the State Farm Canada App includes Alert, our latest home insurance prevention program that detects water leaks and risk of freezing to prevent water damage.
Customers with a home insurance policy that sign up for the Alert program will receive a free water and freeze detector. The detector is a connected device and can be placed close to a potential source of leaks like a bathroom, dishwasher or washing machine. If it senses a problem it sends an alert to your smartphone by notification, text message or email, so you can act quickly to limit any damage. Participation in the program will not lead to premium increases or changes in existing coverage, regardless of how many alerts a customer receives.
In Canada, water damage accounts for more than 50% of property insurance claims, so acting fast can prevent significant damage and avoid the disruption that comes with it.
How and where do I get it?
Call your State Farm agent to enroll in Telematics and/or Alert, and download the State Farm Canada App from the App Store® – www.apple.com/itunes/download – or Google Play™ – https://play.google.com/store/apps.
About State Farm
In January 2015, State Farm’s Canadian operations were purchased by Desjardins Group, the leading cooperative financial group in Canada and among the three largest P&C insurance providers in Canada. With its 500 dedicated agents and 1700 employees, the State Farm division provides insurance and financial services products including mutual funds, life insurance, vehicle loans, critical illness, disability, home and auto insurance to customers in Ontario, Alberta and New Brunswick. For more information, visit www.statefarm.ca, join us on Facebook – www.facebook.com/statefarmcanada, or follow us on Twitter – www.twitter.com/statefarmcanada.
App Store is a service mark of Apple Inc., registered in the U.S. and other countries.
Google Play is a trademark of Google Inc.
*Telematics is currently available in Ontario only
State Farm branded policies are underwritten by Certas Home and Auto Insurance Company.
®State Farm and related trademarks and logos are registered trademarks owned by State Farm Mutual Automobile Insurance Company, used under licence by Certas Home and Auto Insurance Company.
©Copyright 2017, Certas Home and Auto Insurance Company.
SOURCE State Farm Mutual Automobile Insurance Co.
InsureMy Ltd., a Calgary based, full service insurance brokerage firm, today announced the piloting of their innovative young drivers program, New Drivers Intelligence (“NDI”). With a full launch across Alberta and Ontario anticipated in early 2016, Canadian parents will soon have access to real-time driving data, direct from their vehicles, allowing for greater coaching opportunities between parents and new drivers.
Helping teens develop good driving habits means improved safety for all…
Through the use of a simply installed plug-in telematics device, InsureMy’s NDI system allows both parents and teens to track and monitor their driving behaviour. With the ability to collect and review information direct from the vehicle about drive time, speed, braking, cornering and more, NDI gives parents peace of mind when putting new drivers on the road, knowing they have the resources to coach their kids even when they can’t be at their side. All while giving teens the independence they seek, building confidence and setting them up for a future of responsible driving.
Industry data points to significant reduction in dangerous driving incidents…
Recognizing the need to make a positive impact on the lives of parents and teens across the country, InsureMy brings global driver safety technology to the Canadian driving landscape. Established young driver programs in the UK report a massive improvement in young driver statistics with 2014 results revealing a 21% reduction in dangerous driving incidents and a 40% drop in crash risk for drivers with a telematics policy.
“…InsureMy puts family driving safety first,” states Hugh McTavish, President of InsureMy Ltd.
“Customers shouldn’t have to experience a claim to know that their insurance dollars are well spent. That’s why InsureMy puts family driving safety first,” said McTavish. “In fact, it’s incumbent on our industry in general to take the kind of action we’re taking to effect positive change and promote safety for all drivers – it’s good for our customers. InsureMy’s NDI is a first step in that direction,” McTavish concluded.
To put an InsureMy policy to work for you, or for further information on the complete line of InsureMy products, contact Gord Mansfield at 1-844-410-1896.
About InsureMy Ltd.:
InsureMy is a full service insurance brokerage firm, emerging as a market leader in the management and delivery of telematics based insurance products. Empowering customers to manage costs, regulate driving performance, and minimize their environmental impact by leveraging technological advances in the collection and practical application of telematics data.
SOURCE InsureMy Ltd.
For further information: Gord Mansfield, Director, National Sales, Phone: 1-844-410-1896, Email: Gord.Mansfield@InsureMy.ca