Bramptonians are not strangers to high car insurance premiums, so it comes as no surprise drivers in the city may be looking for options that can lower rates. Turns out a new type of insurance from CAA could provide some relief.

CAA has launched MyPace, a pay as you go option that lets drivers monitor how much they drive and pay for insurance based on mileage. So if you drive less than 9,000 kilometers per year you could save on your car insurance.

“We believe that insurance options should be designed based on individual lifestyles and the various stages of people’s lives,” said CAA Insurance president Matthew Turack in a press conference.

“People should be able to access the insurance they need, when they need it, at a price and payment schedule that works for them.”

Drivers track their mileage by plugging a device into their vehicle that connects to a mobile app. The app tracks the distance they drive and as well as the time. This program focuses explicitly on mileage and doesn’t factor in speed, braking patterns, and other variables to calculate the cost of premiums.

Drivers who choose to enroll in MyPace will have kilometers loaded automatically in 1,000-kilometre increments and receive a notification to let them know when they are close to the end of an increment. If the annual cap is exceeded, the customer’s underlying insurance premium rate applies to the additional kilometers.

Premiums for the program will be calculated just like other insurance policies, taking into account a driver’s age, past driving record, and other details. The real money-saving opportunity is for low-mileage drivers who travel less than 9,000 kilometers per year. On the pay as you go system these drivers will pay less than their traditional policies.

Kilometers are reloaded automatically in 1,000-kilometre increments, so you only pay for what you use. Drivers 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.

For Bramptonians who commute to Toronto by train or bus and leave their cars parked most of the day at the GO station, this could be a good opportunity to save.
The company describes the option as being good 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 kilometers due to their overall lifestyle.”
The program is expected to launch in Ontario this summer.