Pay as you go: A new device might help you save big on car insurance in Alberta
If you don’t drive much in Alberta and despise the chance of expensive car insurance when renewal rolls around, a new device might help you save some serious cash.
The Alberta Motor Association (AMA) announced on Tuesday it is bringing in the province’s first pay-as-you-go auto insurance, and it’s touted as having saved some Albertans more than 40% off their premiums.
“AMA MyPace is a groundbreaking, distance-based insurance product where, alongside a fixed fee for things like theft and hail, policyholders only pay for the number of kilometres their vehicle is driven,” the association said in a news release.
The device is offered by the Alberta Motor Association Insurance Company (AMAIC), which operates exclusively in Alberta as a subsidiary of the Alberta Motor Association (AMA).
It’s said to offer “significant” savings for vehicles driven less than 9,000 km a year. According to a recent survey, AMA found that nearly 60% of participants drive their vehicles 9,000 km or less annually.
The driving distance is recorded by a device that easily plugs into a port in the vehicle, and customers are billed monthly based on the vehicle’s distance driven in the previous month, along with a fixed amount to cover hazards while parked.
They can view the vehicle’s recent trips and monthly kilometres in the AMA MyPace app.
Supplied
In a 2023 survey of AMA members, over 30% of participants stated they are driving less than they were pre-pandemic. Members cited work-from-home arrangements, retirement, and gas prices as key factors in their reduced driving.
Additionally, commute distances have been gradually declining. According to the Alberta Insurance Rate Board, 45% of Canadians reported they commuted fewer than 5 km/day in 2018. Today, that number has risen to 57%.
“Albertans are driving their vehicles less. AMA MyPace is designed to meet their changing insurance needs and save money,” says Rob Jesso, chief operating officer at AMAIC. “AMA MyPace is a whole new way to look at insurance. Albertans with low-mileage vehicles can now take more control of their monthly bill.”