Canada's first ever 'pay as you go' car insurance rolling out in Ontario
Ontario is getting Canada’s first ever “pay as you go” car insurance.
Known as “CAA MyPlace,” the auto insurance premium gives drivers the “choice and control” when it comes to car insurance, giving them the power to monitor how much they drive and pay for their premium based on mileage.
According to CAA, 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 then allows motorists to track how much they are driving and to pay for auto insurance based on that mileage.
The new system will be most beneficial to low-mileage drivers.
CAA said that MyPace 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 due to their overall lifestyle.”
Ontario drivers interested would enroll to MyPlace like any other insurance policy, install MyPlace in their car, and just drive. Drivers start with a base rate and are charged every 1,000 kilometres.
Following that, kilometres are reloaded automatically in 1,000 kilometre increments, so you are only paying for what you use.
The new insurance program will be available in Ontario later this summer.
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