By CRM Staff
Toronto, Ontario -- May 23, 2018 -- A recent announcement from CAA Insurance Company could change the rules of the insurance game for drivers. The company revealed details of its new pay-as-you-go insurance plan for Ontario drivers, the first of its kind in Canada.
The new program, called CAA MyPace, gives motorists the choice and control they are looking for when it comes to auto insurance. Monitoring how much motorists drive, it allows for those who spend less-than-average time behind the wheel to pay lower premiums.
"We believe that insurance options should be designed based on individual lifestyles and the various stages of people's lives," said Matthew Turack, president, CAA Insurance. "People should be able to access the insurance they need, when they need it, at a price and payment schedule that works for them. CAA MyPace brings Ontario motorists one step closer to that reality."
The new program is powered by a telematics device that is plugged into the vehicle and connects to a mobile app or web portal. The app allows motorists to track how much they are driving and to pay for auto insurance based on that mileage.
According to CAA, the MyPace plan is ideal for the Monday to Friday public transit commuter who leaves their car at home, someone retired who likes to visit family on weekends or motorists that drive under 9,000 kilometres per year due to their overall lifestyle.
"Over the last number of years, auto insurance has been front of mind for a lot of Ontarians," said Elliott Silverstein, manager, government relations, CAA South Central Ontario. "Today's announcement provides an additional layer of choice for those who are low-mileage drivers and marks an important step in the modernization of insurance in Ontario."
Drivers enroll in the program as they would with any other insurance policy, install the MyPace device in their car and drive. Motorists start with a base rate and are charged by every 1,000 kilometre increment.
Customers receive a notification to let them know when they are close to the end of a 1,000 kilometre increment, making it easy to monitor usage. The program will be available in Ontario later this summer.