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What our users say:

Excellent
Based on 331 reviews
July 15
Auto Insurance
I was looking for an insurance rate that would help me save money, I did a Googl...
Louise Beaton
July 7
Great and honest service !!!
Meaghan Ford was amazing with her service and very patient in explaining all the...
Zee Sajid
July 1
excellent service
excellent service
An Luu
June 22
Highly recommended
Excellent customer service. Was very patient and answer my customers toughly. Fo...
Karan Parmar
June 18
Chelsea was very helpful
Chelsea was very helpful, answered all my questions and set me up hassle free. S...
Chris
June 11
Very nice broker
Very nice broker. Good service. Found a great deal.
Meredith Berggren
June 9
Simple, fast, affordable!
Took a little longer than expected for the billing to go through, but otherwise...
Jonathan C
June 5
Awesome work
wow what an awesome rep. He did up everything, extremely fast and was very under...
Delroy Paul
June 4
It was a pleasure dealing with your…
It was a pleasure dealing with your broker, it made switching insurance companie...
Michael Sheridan
May 27
Excellent customer service
This is the first time I got insurances from Direct Rate.I have nothing but good...
Tejas Patel
May 26
Quick service
Quick service, good price
dl
May 22
Imad Harrouk was great !
Imad Harrouk was great ! intelligent well spoken professional polite a perso...
james bannon
May 21
Imad Harrouk helped me get the best…
Imad Harrouk helped me get the best home and auto bundle insurance quote. He was...
Amanda Moskowitz
May 20
Excellent !!! Very competitive rates !!
Excellent customer services also they have very competitive rates !!
Eliza Gallant
May 20
Excellent Service
Sonia was patient with all of my questions, helpful and cheerful through the ent...
Cori Thompson
May 18
I was treated fairly and walked through…
I was treated fairly and walked through my purchase.I enjoyed the agent was exce...
paul neville
May 14
Highly recommend
Great experience, simple to use and they gave me a lot of options at prices that...
Chandra Wilson
May 11
Easy
Easy, clear and fast. Very effective.
Rene Izquierdo de la Cruz
May 6
Sonia was very helpful and nice…
Sonia was very helpful and nice throughout the whole process. She got me the bes...
Ali Al-Rubayee
May 6
Very friendly and professional
Very friendly and professional. She always try to help. Really appreciate.
Binod Shrestha
May 5
He was so amazing
He was so amazing. He went out his way to help me. He deserves a raise Very po...
Shahin Abbaskhan
April 27
Great rates!
Ryan was very helpful and polite.He went all out to find me the best rate. He wa...
Linda Shelton
April 22
The service was excellent
The service was excellent. Emad provided awesome service for me.
John Bowden
April 19
Fast and professional customer service
Fast and professional customer service. All of my questions were answered and I...
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Get the best rates on usage-based car insurance.

Paying too much for car insurance? Lower your premiums with a usage-based auto insurance policy from LowestRates.ca.

Whether you're a young driver, live in a big city, or own a car that's subject to high insurance rates in Canada, usage-based insurance policies can lower the cost of your premiums by rewarding you for good driving habits.

Ready to find the best usage-based car insurance policy? Click the "Get Started' button.

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See how our customers save big on auto insurance.

CustomerLocationVehicleLowest RateAverage RateSaved
Quote from August 02, 2021
Customer
Female, 35 years old
Location
ontario
Vehicle
2011 MITSUBISHI TRUCK/VAN RVR SE 4DR 2WD
Lowest Rate
$4,285/yr
Average Rate
$6,473/yr
Saved
34.00%
Quote from August 02, 2021
Customer
Female, 36 years old
Location
ontario
Vehicle
2020 TOYOTA COROLLA LE 4DR
Lowest Rate
$2,535/yr
Average Rate
$4,070/yr
Saved
38.00%
 

Let’s talk telematics.

How does usage based insurance work?

Usage-based insurance (UBI) uses onboard technology to monitor your driving habits and adjust your premiums based on how you drive.

With UBI car insurance, a small telematics device is installed in your vehicle and transmits data back to your insurance company while you drive. The device logs driving metrics such as braking, cornering, acceleration, speed—even where you drive and what time of day you're on the road. If the data show that you're a low-risk driver, you might qualify for a significant discount on your car insurance premiums.

What data does usage based insurance plans collect?

The types of data collected vary from company to company, but most telematics boxes capture four key driving metrics: acceleration, braking, cornering and speed. Some devices also record where and when you drive. Once these metrics are collected and analyzed, your insurance company will determine if you qualify for a premium discount.

Here's how it works:

  • Acceleration measures the rate at which the speed of your vehicle changes within a set period of time. If you increase your rate of speed rapidly (by stepping hard on the accelerator), the telematics device records that information.
  • Braking is measured in a similar way to acceleration: Your vehicle's telematics box records your braking data and transmits it to the insurance company. A pattern of hard braking, where you reduce your vehicle's speed rapidly, is a strong indicator of unsafe driving tendencies.
  • Cornering measures the rate and angle a vehicle travels around a corner. Approaching sharp corners or bends in the road at higher speeds should be avoided.
  • Speed is calculated via the GPS in your telematics box and is compared against a database of speed limits from across the country. Staying at or below the speed limit will greatly help you reduce your premium.
  • When/where you drive. Most telematics boxes have GPS capabilities that let insurance companies see when and where you drive. Where you drive and when you're on the road are two of the biggest predictors of future insurance claims.

Does telematics technology have any drawbacks?

Yes. Drivers and critics alike have two main concerns about this new technology:

  • Privacy: Critics say the information that's collected could be disclosed to third parties or be used to reject claims. Usage-based insurance companies maintain that your data will remain private and secure. Make sure your insurance company requires consent before they can share your information with a third party.
  • Interpretation: Some worry that a usage-based insurance plan may actually work against you. If your insurance company classifies you as a risky driver after analyzing your telematics data, in some jurisdictions, your premiums could increase.

Your usage-based auto insurance questions, answered.

Why get usage-based insurance?

Simply put, UBI auto insurance is a great way to obtain cheaper car insurance for your vehicle. Also known as pay as you drive insurance, you pay for the kind of driving you actually do, instead of the driving the insurance company thinks you do. And if you're a careful driver, your premiums will reflect that.

And there's another benefit: you get instant feedback on your driving habits. Many insurance companies have apps that give you real-time insights into how you drive and share recommendations on how you can become a better driver.

Recent studies also show that telematics technology really does make for safer driving. One report analyzed over 200 million miles of data collected from young drivers since 2011.

Some very promising trends emerged: for instance, the report showed a 40% drop in crash risk for new drivers with usage-based insurance compared to young drivers without a UBI insurance policy.

Not surprisingly, 80% of UBI customers agreed that technology helped them become better drivers, and many said they began to monitor their behaviour behind the wheel in an effort to reduce their premiums.

All in all, pay as you go car insurance policies can save lives and keep the cost of insuring your vehicle to a minimum.

How does telematics technology lower my premiums?

Traditionally, insurance companies use very blunt methods to calculate car insurance rates. Demographic data, like age and gender, combined with a driver's past record (number of years on the road, number of traffic violations and claims, etc.) were the only ways an insurance company could gauge how risky a driver was on the road.

But pay per use auto insurance plans use your real-world driving data to determine if you're a safer bet than other drivers with the same basic profile.

The first step is installing a little black box into a diagnostic port on your car (usually near the steering column). The unit is about the size of a matchbox, and it collects data on your driving habits and then transmits the data through cell phone networks and back to your insurance company.

Once your insurance company has the data, it can adjust your premiums accordingly. Remember: safe, cautious driving equals cheaper car insurance.

How much money can I save with usage-based insurance?

Pay-per-use car insurance customers usually see a savings of 10% to 25% on their yearly premiums. Drivers who fall into traditional high-risk categories (inexperienced drivers, drivers in big cities, etc.) can save even more.

Can my car insurance rates increase with a usage-based insurance plan?

It depends on which province you live in.

In Ontario, for example, UBI car insurance companies cannot use the data they collect to penalize you by increasing your rates, cancelling your policy, or determining a claim decision. They can only use the information to build your driving profile and help you reduce your insurance payments.

In Quebec, surcharges can be added to your premiums if you're classified as a riskier driver based on the data collected from your car insurance monitoring device.

Which company offers the best usage-based insurance?

There’s no single company that offers the cheapest UBI car insurance. Each insurance company calculates its pay as you drive car insurance rate discounts differently.

It’s best practice to compare usage-based car insurance online. Our auto insurance quoter allows you to compare UBI car insurance quotes from multiple providers which ensures you’re getting the best pay-per-mile car insurance available.

Do UBI plans all use the same data and apply it in the same way?

No. Each insurance company calculates its UBI rate discounts differently. For example, some assign more importance to speed and acceleration than to other variables. Others place greater weight on when you drive. It just depends on the insurance company. Compare quotes online for the best UBI car insurance rates.

Is usage-based insurance available in my province?

In Canada, pay per mile insurance is widely available in Quebec, Ontario, New Brunswick, Nova Scotia, and Alberta. Meanwhile, Saskatchewan hasn’t made any further announcements about integrating a UBI program since its pilot program for motorcycle drivers ended in 2014.

British Columbia is taking a "wait and see" approach to UBI due to some of the privacy concerns posed by the technology. Manitoba, Prince Edward Island, and Newfoundland and Labrador haven't made announcements about their own plans for introducing UBI — at least, not yet. UBI is a newer insurance option in Canada and provincial governments are still working out the kinks to ensure that it can be implemented safely and ethically.

Check LowestRates.ca to find out when UBI becomes available in your area.

Province / territoryIs usage-based insurance available?
AlbertaYes
British ColumbiaNo
ManitobaNo
New BrunswickYes
Newfoundland & LabradorNo
Northwest TerritoriesNo
Nova ScotiaYes
NunavutNo
OntarioYes
Prince Edward IslandYes
QuebecYes
SaskatchewanNo
YukonNo

Last updated: Mar. 31, 2021

How do I get a quote for usage-based insurance?

Contact us at info@lowestrates.ca and we'll connect you with a usage-based insurance expert to review your pay as you drive insurance options.

Zandile Chiwanza

Zandile Chiwanza

About the Author

Zandile is a Personal Finance Writer at LowestRates.ca. Before joining the team Zandile worked as the content editor for Real Estate Management Industry News. As a self-proclaimed budget warrior, Zandile dedicates most of her time to advocating for financial wellness.

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