CAA introduces pay-as-you-go auto insurance
Posted Jul 18, 2018 07:10:00 PM.
This article is more than 5 years old.
You can now pay-as-you when it comes to automobile insurance.
CAA’s MyPace program was launched in Ontario last week.
They are gearing it to people who drive less than 9,000 kilometres a year.
Once they give you your individual rate, it is then broken down into increments of 1,000 km.
You pre-pay for 1,000 km, then CAA notifies you when you are close to running out so you can reload another 1,000 km.
“We call it the lifestyle product.” said Matthew Turack, President of CAA Insurance.
“It really speaks to an individual who drives less than 9,000 kilometres…it can be a senior, it could be an adult with two cars, who uses one car on the weekend for more of the joyrides and just pleasure use. It can be someone who goes to school and just doesn't drive very much and uses public transit.”
A telematics device will need to be installed on your vehicle to collect the kilometre data.
“All we use for this program is the kilometres you drive. We don't use any other factors that the device provides. We do provide some of the information back to the consumer about vehicle health…alerts to tell them if their battery is being drained…For this program all we're using is the kilometres, simply when to reload your next 1,000 kilometres on the program.” Turack told The Jennifer Campbell Show on 570 NEWS.
CAA is looking to eventually expand the service to the rest of Canada.
