When Would Usage Based Insurance Be Ideal?

Over the past few years, more drivers in Ontario have been spending less of their time on the road. Spending less time on the road has affected several facets of our lives; however, what if we told you that you could use your road time as leverage to lower your car insurance premiums?

It's true — you can drastically decrease your premiums by opting for usage based insurance in Ontario.

If you're not familiar with this type of coverage or are unsure if usage based car insurance is the right choice for your lifestyle, then be sure to continue reading. We'll discuss the ins and outs of usage based coverage and which drivers should consider utilizing it during their travels.

What is usage based car coverage?

Usage based car coverage (also referred to as telematics, UBI and pay-as-you-go insurance) is a unique insurance tool that drivers can use to lower their premiums.

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Usage based coverage was introduced to Canadian drivers in 2013 and has become a popular option ever since. This type of auto coverage utilizes state-of-the-art technology to thoroughly track numerous details regarding your vehicle usage and driving habits.

Some standard examples of the details and habits that usage based coverage tracks include:

• Braking speed and distance
• Acceleration rates
• Speeding
• Kilometres driven
• Time of drive (total time of travel and the time that the journey took place)

If your usage based coverage shows your provider that you have safe, responsible driving habits, then your premium will reflect this. Generally, drivers in Ontario can save anywhere from 5% to 50% on their car insurance. With this in mind, you can see why usage based coverage is widespread in Ontario.

How does usage based coverage work in Ontario?

Using usage based car coverage is relatively simple. If you decide to purchase usage based coverage, your insurance provider will send you a wireless tracking device. Once you've received the device, you need to install it in your vehicle. After this is complete, your insurance provider can record your usage and monitor your driving habits.

Additionally, you, as the driver, can view this data as well. All you need to do is download an app (reach out to your insurance provider for specifics).

Who should purchase usage based car coverage in Ontario?

When it comes to usage based insurance Ontario has no shortage of drivers that can benefit from the potential savings. Usage based coverage is a fantastic option for the following types of drivers:

Remote workers

Nowadays, working from home is extremely common. Thanks to the recent leaps in technology, many individuals can get their jobs done from the comfort of their homes. Because of this, most of these individuals no longer have to commute (or commute less regularly).

If you're spending less time on the road than you were in the past, you should consider looking into usage based car coverage. Showing your insurance provider that you spend little time on the road will encourage them to lower your premiums, which can help you save a pretty penny each month.

Safe and cautious drivers

Do you have exemplary driving habits? If so, you should contact your insurance provider to inquire about their usage based car coverage options. 

As mentioned above, usage based coverage allows your provider to monitor your driving habits. So, if you already have good driving habits, you can start saving almost immediately!

Some examples of safe driving habits include:

• Driving within the speed limit
• Braking gradually
• Taking turns slowly
• Accelerating moderately

Drivers with particularly high auto insurance premiums

As you may know, auto insurance providers consider several details when determining the price of premiums. Drivers in Ontario can influence some of these factors, such as their:

• Driving history
• Claim history
• Vehicle choice

However, there are a number of factors that drivers can't control. Some examples of these variables include:

• Gender
• Marital status
• Age

Many of these factors play a large part in determining the price of your auto insurance premium in Ontario. 

If you've been looking for innovative ways to lower your car insurance premium, you should consider purchasing usage based coverage. Although it may take some time (especially if you're still working on your safe driving habits), you'll start to notice your insurance premiums payments decrease.

How much does usage based car coverage cost in Ontario?

Unfortunately, we can't provide you with an exact number, as the price varies from driver to driver. But, we can say that the average driver with usage based coverage saves approximately $450 on their insurance each year.

Do all car insurance companies offer usage based coverage?

Currently, usage based car coverage is only offered by a handful of auto insurance providers in Ontario. If you're interested in obtaining usage based car coverage, be sure to reach out to your current auto insurance provider to learn more about their potential options.

However, if you have been thinking about re-shopping your auto insurance policy, there's no better time to start than the present.

But, if you're struggling to find affordable quotes, we suggest that you reach out to one of our licensed insurance advisors. Our licensed advisors work closely with the best insurance carriers in the country to find the very best policies that the industry has to offer. Within a few minutes, we can provide you with ten competitive, personalized quotes that can help you save a bundle on your premium.

What have you learned about usage-based insurance Ontario?

Many drivers in Ontario don't feel like they're getting rewarded for being safe, responsible drivers. If you relate to this statement, it's time to switch to usage based car coverage. As you now know, usage based car coverage is an efficient way to reduce your monthly insurance payments. Not to mention, it allows you to access a wide variety of details and important data about your driving habits.

Contact your auto insurance provider today to see if and when you can transition to this innovative form of coverage. It’s never the wrong time to start saving on car insurance.