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More and more Ontarians are looking into usage-based options for their car insurance needs. This is a great option for those who do not drive their vehicles every day. It can save Ontario drivers a lot of money. It is basically a pay-as-you-go type of system. 

How Does Usage-Based Insurance Work?

usage display

Usage-based insurance is a telematics technology used to monitor driving habits. At one-time driving habits were measured by the vehicle’s little black box using a computer microchip. However, with today’s advanced technology there are now smartphone apps available for this purpose. 

List: Which insurance companies use telematics?

  • Allstate –  Drivewise
  • Belairdirect –  Automerit
  • CAA – My Pace
  • Desjardins – Ajusto
  • Intact – MyDrive
  • Onlia – Sense
  • TD – MyAdvantage

How Much Will I Save By Using Usage-Based Insurance?

What you will save on usage-based car insurance will depend on your driving habits and the program your insurer operates under. 

What Are The Benefits of Usage-Based Insurance?

There are some great benefits to usage-based insurance, especially if you seldom drive your car and practice safe driving habits. You could stand to save a significant amount of money on your car insurance. 

How Much Does Usage-Based Insurance Cost?

The cost of usage-based insurance will depend on your insurance company and what your driving habits are. There is no flat rate as it’s usage-based. On average, in Ontario, a usage-based driver can save up to $450 on their annual premium. 

How Much Can You Save With Usage-Based Insurance?

Usage-based insurance can save drivers quite a bit of money, as your usage-based car insurance rate is customized to your mileage and driving habits. Typically an Ontario driver using usage-based telematics can save up to 30% on their car insurance. 

What Does Usage-Based Insurance Cover?

Usage-based drivers will have the same coverage they have on their regular car insurance policy. 

Telematics Programs Offered By Insurance Companies in Ontario

The usage-based programs that insurance companies use vary from company to company. Below is a brief description of some of the insurance company’s usage-based programs. 

Allstate –  Drivewise


Allstate insurance company has a usage-based insurance program that utilizes a pay-as-you-drive model. Clients must use the program for at least 6 months. Clients could save up to 30% on their car insurance premiums.

Belairdirect –  Automerit

Belairdirect car insurance

Belairdirect customers will receive a 10% discount for signing up for the automerit program. Drivers under the automerit program can save up to 15% for driving less than 10,000 kilometers per year plus up to an additional 15% for driving safely. These discounts are applied every 6 months. The safety score Belairdirect uses for driving safety includes the minimization of hard braking, distracted driving, risk hours, rapid acceleration, and speeding. 

CAA – My Pace


The Canadian Automobile Association (CAA) offers a pay-as-you-go model for usage-based car insurance. Drivers under this program must drive fewer than 9,000 kilometers per year to receive a discount. 

Co-operators – Enroute


The Co-operators Enroute program has been discontinued. 

Desjardins – Ajusto


Desjardins Ajusto program is a usage-based car insurance program that allows drivers to save up to 25% on their car insurance premiums. Desjardins Ajusto is a pay-as-you-drive model. Drivers may be eligible to receive additional savings which would be automatically applied to their car insurance. 

Intact – MyDrive


With the Intact MyDrive usage-based car insurance program, drivers receive a 10% discount as soon as they sign up for the program. Drivers can save up to 30% on car insurance premiums which are applied every 6 months. Safe driving factors for the program include observation of hard braking, rapid acceleration, speeding, distracted driving, and primetime driving hours. 

Onlia – Sense

Onlia Insurance company only offers a UBI app. Drivers receive rewards such as cashback and free coffees for safe driving habits. 

TD – MyAdvantage

TD’s MyAdvantage usage-based car insurance can save drivers up to 2% on their car insurance policy. The TD MyAdvantage works a little differently than many of the other insurance providers offering a UBI. TD monitors a driver’s driving habits for a full year by collecting the data from the app. Once the driver’s policy is up for renewal the discount is calculated and applied at that time. The TD MyAdvantage app assigns a score for every single trip and then the average rating over the year is used to calculate the discount. Safe driving factors for the program include monitoring of speeding, braking, acceleration, time of day, and cornering. 

Brand New Vehicles

Many brand new vehicles are constructed to include built-in telematics. These vehicles will allow for usage-based insurance monitoring and can be used with a telematics app. Using telematics for usage-based car insurance can provide many discounts to drivers. Drivers should check with their insurance provider to see if they offer any type of usage-based insurance program. If they don’t it may be best to shop around for a company that does. Drivers should always take the time to shop around and compare car insurance quotes. 

Privacy Concerns With The Use Of Telematics

For some people, privacy means more than saving money. Many people may be apprehensive about using a telematics system for usage-based car insurance because they are unsure where the collected data ends up. According to the FSRAO, “Insurers are responsible for ensuring that any UBIP program, including consent documentation and associated collection, use or disclosure of personal information by the insurer or third parties, meets all requirements in relevant privacy legislation.” Drivers are also concerned that the data collected may also have a negative impact on their car insurance premiums. Insurance providers are only allowed to use the collected data for usage-based insurance premium rates, they are not permitted to disseminate the personal information and/or data that is collected to any third parties. It is highly recommended that any driver considering a usage-based car insurance program research and understand what all the information is going to be provided to the insurance provider and what they actually do with the information. Drivers should also be aware that their personal information is protected under Canada’s Personal Information Protection and Electronic Documents Act, also referred to as PIPEDA.


  1. bliz 12 September 2017 at 1:59 pm - Reply

    why is it called “good drivers” versus “bad drivers”?….how about “spineless robot drivers” versus “human beings that drive in the realities of the road”? so if you literally go over a certain limit or brake a certain way etc without any context to the traffic situation and area you live and type of roads etc then the assumption is any slow, defensive, passive, robotic driver that are actually “bad” drivers in faster, denser, more complicated contexts of traffic or dealing with other bad drivers actions are “good” drivers simply by virtue of some data with zero context…???…how many highway accidents and road rage is caused by people driving at exactly the speed limit? how many real life drivers dont make left turns on orange after waiting 20 minutes? how many real life drivers have perfect brakes or zero incidents of having to brake aggressively and suddenly? this is like applying a set of standards that only a lame 80 year old person living in a town of 10 could possibly fulfill…it has nothing to do with reflecting the realities of driving on the road and the grey areas of context….pathetic…this will destroy freedoms in car and the mutually acceptable unwritten rules of road we have civilly developed as adults (i.e. if the flow of traffic on a 100km highway is at 120km then thats how you drive—technically over the speed limit but no cop stops people for this unless a near empty highway…)…there is absolutely no upside to this system and it is a ruse to ruin consumers and citizen rights…

  2. Robert Gillespie 16 June 2019 at 6:30 am - Reply

    Wuy dont Toronto drivers slow down and care about pedestrians biking and other means of traffic I live in the parliament and Gerrard dtivers drive way too fast they dont dtop for stop signs or even red lights 80 present of drivers shouldn’t be driving .slow down and obey the rules of the road if every one did this we would have a lot less accident s.

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