Usage-based auto insurance (UBI)-often called telematics insurance-uses driving data from an app or device to personalize your premium. For some drivers it’s a meaningful discount; for others, it’s not worth the tracking (or the risk of a renewal surcharge).
This guide explains how UBI works across Canada, what you can realistically save, how to compare major programs, what data is collected, and how to avoid common setup mistakes that can wreck your score.
Key Takeaways
- Compare quotes using the same liability limits, deductibles, and optional coverages so the prices are truly comparable.
- Ask insurers how your profile (age, driving record, claims history) affects eligibility before you spend time on long applications.
- Confirm which discounts you actually qualify for (student, bundling, telematics, winter tires) and what proof is required.
- Review your vehicle details (trim, usage, annual km, parking) because small changes can shift your rate.
- Re-shop at renewal and after major life changes, not only after a claim.
On This Page
- Quick answers
- What usage-based auto insurance is (and how it works in Canada)
- UBI by province: what changes across Canada
- UBI costs in Canada: what you can realistically save
- Major UBI programs in Canada (apps, rules, discount ranges)
- How to choose a UBI company in Canada
- What data UBI collects (and privacy questions to ask)
- Who UBI is best for (and who should skip it)
- UBI vs. pay-per-km vs. low-mileage discounts
- City driving: how UBI can score differently in Toronto, Vancouver, Montreal & more
- How to sign up (and avoid common mistakes)
- How UBI affects your premium (flowchart)
- FAQs
- Sources (numbered footnotes)
Quick answers
Is usage-based auto insurance available everywhere in Canada?
Not always. Auto insurance is provincially regulated, and Canada has a mix of private and public insurance models depending on where you live. That affects which insurers you can buy from and how programs like UBI are offered.1
Can UBI increase my premium?
Sometimes. Some programs are “discount-only,” but others can apply a renewal adjustment up or down depending on score. For example, TD MyAdvantage states that safe driving can earn a discount up to a stated maximum, and riskier driving can result in a surcharge up to a stated maximum.56
Do I need a device plugged into my car?
Often no-many programs are smartphone app based. Some distance-based (pay-per-km) programs use a device plus an app/dashboard. Always confirm what hardware (if any) is required.
Does UBI track my location?
Some programs collect GPS/location data; others emphasize driving events (braking/acceleration) and time-of-day. Don’t guess-read the program privacy policy and ask what’s collected, how long it’s kept, and who it’s shared with.
Is UBI the same as pay-per-kilometre insurance?
No. UBI typically scores driving behaviour (and sometimes distance). Pay-per-km primarily prices based on distance driven. Some insurers blend concepts, so you must read the program description carefully.
What usage-based auto insurance is (and how it works in Canada)
Usage-based auto insurance (UBI)-also called telematics insurance-is a pricing approach where an insurer uses driving data to personalize your premium. Typically you enroll in a program, install an app (or use a device), and drive normally during a monitoring period. The insurer then applies a discount, keeps your rate unchanged, or (in some programs) adjusts your premium at renewal.
Quick calculator: estimate and compare
Compare multiple quotes side-by-side on the same coverages so you can see whether UBI is actually lowering the total cost-or just making a higher-priced policy look cheaper with a discount label.
Tip: Always compare “base premium” with UBI turned off vs. on (same policy, same coverages).
Because auto insurance is provincially regulated, minimum coverages and market structure vary across Canada. Statistics Canada notes that minimum levels of coverage are mandated by provinces, and some provinces require drivers to purchase minimum coverage through a government insurer.1 The Insurance Bureau of Canada (IBC) also explains that public insurers provide mandatory coverage in some provinces, and Quebec’s public system applies to bodily injury coverage only.2
What insurers typically measure
Every program is different, but UBI commonly considers driving behaviours that correlate with claim frequency or severity, such as:
- Hard braking and rapid acceleration
- Speed or speeding events (program-defined)
- Cornering/handling events
- Time of day
- Distance driven (sometimes)
- Phone distraction indicators (in some app-based programs)
What to do next: Ask for a plain-language list of what’s measured and what counts as an “event” in that specific program.
How UBI discounts are applied
Many programs apply the outcome at renewal rather than changing your price mid-term. Some offer an “enrolment/activation discount” immediately and then replace it with an earned discount (or adjustment) later. Examples include programs that advertise a sign-up discount and a later renewal adjustment based on score.578
Warning: Don’t assume UBI is always a discount
Some telematics programs can adjust your premium up or down based on score (usually at renewal). Confirm-preferably in writing-whether your program is discount-only in your province and when changes can apply.6
UBI by province: what changes across Canada
Two things drive provincial differences:
- Regulation and mandatory coverages: Auto insurance is provincially regulated and minimum coverage levels are mandated by provinces.1
- Market structure: Some provinces rely on private insurers; others require minimum coverage through a government insurer (and Quebec has a public bodily injury component).12
IBC provides province-by-province guidance on mandatory requirements and notes that requirements can change, so drivers should confirm locally.3
Practical takeaway: When someone says “UBI saved me 25%,” you still need to ask: in which province, under which program rules, applied when, and compared to what base premium?
UBI costs in Canada: what you can realistically save
UBI isn’t a separate coverage you pay extra for; it’s a pricing program attached to your policy. So the “cost” is really the trade-off between:
- How much the program reduces (or increases) your premium
- Whether the app/device is worth the hassle
- Whether the data collection matches your privacy comfort level
A realistic benchmark: what drivers pay now (example: Ontario)
If you’re trying to translate “10%” or “25%” into real dollars, it helps to anchor to an official benchmark. FSRA publishes average annual auto premiums for Ontario private passenger vehicles and breaks them out by region (Ontario, GTA, other urban, rural).4
| Ontario region | Average annual premium (FSRA) | As of |
|---|---|---|
| Ontario (all) | $2,120 | June 2025 |
| GTA | $2,765 | June 2025 |
| Other urban | $2,031 | June 2025 |
| Rural | $1,698 | June 2025 |
What to do next: Use your own premium (or a quote) as your real benchmark, but FSRA averages help you sanity-check what a “big discount” could mean in dollars.4
What a discount looks like in dollars (simple example)
Using the FSRA averages above, here’s what a 10%, 20%, or 30% change would look like in dollars. This is illustrative only-your rate depends on your profile, vehicle, coverages, territory, and insurer.
| Benchmark | 10% | 20% | 30% |
|---|---|---|---|
| Ontario average ($2,120) | ~$212 | ~$424 | ~$636 |
| GTA average ($2,765) | ~$277 | ~$553 | ~$830 |
Why “average savings” claims can be misleading
Two drivers can enroll in UBI and have opposite outcomes because:
- The program might be discount-only for one driver’s province but adjustment-based for another
- Time-of-day, traffic patterns, and phone detection can impact scoring differently
- The base premium could be higher at one insurer, making a “big discount” still more expensive overall
What to do next: Ask for a side-by-side premium breakdown with UBI off vs. on (same coverages). If possible, also separate UBI from other discounts (bundling, winter tires, multi-vehicle, etc.).
Major UBI programs in Canada (apps, rules, discount ranges)
The list below is not “best of.” It’s a practical snapshot of widely marketed Canadian UBI programs, using each provider’s own published descriptions. Availability can depend on province and underwriting.
| Program | How it works (high level) | Published discount / adjustment notes |
|---|---|---|
| TD MyAdvantage | App-based telematics with activation discount and later premium personalization. | TD advertises a 10% activation discount and a premium adjustment “up to 30%.” TD also states a discount or surcharge can continue at renewal depending on your most recent assessment and rules.56 |
| Intact my Drive | App-based telematics program attached to eligible policies. | Intact states a 10% enrolment discount and that safe driving could save up to 30% off your car insurance (program terms and eligibility apply).7 |
| Desjardins Ajusto | App-based program; you receive a score after a monitoring period. | Desjardins states you can save up to 10% when you sign up. After a stated monitoring period (e.g., 6 months and at least 1,000 km), your premium is adjusted up or down based on your score.8 |
| Aviva Journey | App-based telematics with enrolment discount and renewal-based adjustment. | Aviva describes a one-time 10% enrolment discount, eligibility for up to a 20% discount at renewal based on driving score, and that riskier driving may lead to an increase up to 5% (per program description).9 |
| belairdirect automerit | App-based program that tracks driving and provides a driving score. | belairdirect states an automatic 5% discount for enrolling and that eligible drivers could save up to 25% at renewal. belairdirect also publishes an “average savings” figure for many users (program rules apply).1011 |
What to do next: Use this table as your shortlist builder. Then confirm four items for your province: (1) discount-only vs. surcharge, (2) monitoring period and minimum driving requirements, (3) what happens if trips aren’t recorded, (4) what data is collected (including GPS).
How to choose a UBI company in Canada
There isn’t one “best” UBI insurer. The best option is the one that:
- Is offered in your province (and for your use-class)
- Has clear rules about discount vs. surcharge
- Still offers a competitive base premium before telematics
- Collects data you’re comfortable sharing
Start with availability in your province (public vs. private systems)
Statistics Canada describes how public and private systems differ across provinces, including provinces where minimum coverage is purchased through a government insurer and where private insurers provide coverage.1 IBC also explains the public insurer model in certain provinces and Quebec’s bodily injury structure.2
What to do next: If your province uses a public insurer for mandatory coverage, ask whether UBI applies to optional coverages, optional add-ons, or a private-market portion (if available).
Pro Tip: Compare “base premium” before UBI
Ask each insurer/broker for:
- Quote A: same coverages, UBI off
- Quote B: same coverages, UBI on
If Quote A is already higher than competitors, a UBI discount may still leave you paying more overall.
Questions to ask every UBI insurer (copy/paste)
- Is the program discount-only in my province, or can it increase my premium?
- How long is the monitoring period, and when is the score applied?
- What happens if I change phones, uninstall the app, or the app fails to record trips?
- How do you handle multiple drivers on one vehicle?
- Do you use location/GPS data, and how long do you retain it?
- Can I opt out later, and what happens to discounts or surcharges if I do?6
What data UBI collects (and privacy questions to ask)
UBI data can include driving events, time-of-day, distance, and (sometimes) GPS location. The most important step for privacy is to treat UBI like any other data-sharing decision: understand collection, use, retention, and sharing.
At a general privacy framework level, Canada’s private-sector privacy rules (including PIPEDA) set expectations around consent, limiting collection, limiting use/retention, safeguards, and access rights.1213
Privacy checklist (practical, not legal advice)
- Collection: What data points are collected (events, speed, time, location, phone use)?
- Retention: How long is data stored after the monitoring period?
- Use: Is data used only for pricing, or also for claims handling, investigations, fraud detection, or analytics?
- Sharing: Is data shared with vendors, affiliates, or third parties?
- Access: Can you see trip history and score drivers inside the app?
- Opt-out: What happens if you withdraw consent mid-term or at renewal?
What to do next: If any answer is vague, ask the insurer to point you to the exact program terms and privacy wording that apply to your province.
Who UBI is best for (and who should skip it)
UBI can be a good fit if you:
- Drive mostly in daylight and avoid high-risk time windows
- Have predictable routes and steady, smooth driving habits
- Want feedback that helps you improve driving behaviour
- Are comfortable using an app/device consistently
What to do next: If you’re unsure, test UBI on one vehicle first (if your insurer allows) so you can evaluate the renewal impact before committing across your household.
You may want to skip UBI (or be cautious) if you:
- Drive frequently at night due to work or family needs
- Regularly drive in heavy stop-and-go traffic where “events” add up
- Share the vehicle with drivers whose habits you can’t control
- Have privacy concerns about location or trip history
Warning: Shared vehicles can distort your score
If multiple people drive the same car, your UBI score may reflect the riskiest driving patterns depending on how trips are assigned. Confirm whether trips can be reassigned and what happens to “unassigned” trips.
UBI vs. pay-per-km vs. low-mileage discounts
These options all relate to “how much you drive,” but they work differently. Here’s the simplest way to compare them:
| Option | What it mainly prices | Best for | Watch-outs |
|---|---|---|---|
| UBI (telematics scoring) | Driving behaviour (and sometimes distance) | Smooth, predictable drivers who are comfortable with app/device tracking | Some programs can adjust premium up or down at renewal; event detection can feel unfair in city traffic.6 |
| Pay-per-km (distance-based) | Distance driven | Low-mileage drivers who want pricing tied to kilometres | May require a device; savings fade as mileage increases; availability varies. CAA MyPace is marketed for drivers under a stated annual km threshold (e.g., 9,000 km).12 |
| Low-mileage discount (traditional) | Declared annual kilometres band | Drivers who want mileage-based savings without trip-level tracking | Proof may be required (odometer, service records); discount size varies widely. |
What to do next: If your annual mileage is low, ask your broker for both: (1) pay-per-km options (if available), and (2) low-mileage rating on a traditional policy. Then compare against UBI with the same coverages.
City driving: how UBI can score differently in Toronto, Vancouver, Montreal & more
City pages should not just swap the city name. The “UBI reality” changes with traffic patterns, road design, commute style, and time-of-day driving-especially when programs weight braking, acceleration, late-night driving, or phone motion.
Why dense cities can feel harsher
- Stop-and-go traffic: Defensive braking can look like repeated “hard braking” events.
- Short merges and aggressive flow: Smoothness scores can drop even when you’re driving cautiously.
- Frequent short trips: More starts/stops can increase event counts.
Why suburban / highway-heavy cities can score easier
- Longer steady-speed trips: Fewer braking/acceleration events.
- More predictable routes: Less sudden stop risk.
| City pattern | Common UBI score friction | Practical adjustment |
|---|---|---|
| Toronto / GTA (dense arterials + congestion) | Braking events pile up; late-evening traffic windows can be weighted | Try a slightly earlier/later departure; choose routes with fewer “compression” merges; keep phone mounted consistently |
| Vancouver (bridges, bottlenecks, short merges) | Stop-and-go near chokepoints; acceleration spikes after bottlenecks | Build more buffer time; accelerate smoothly after slowdowns; avoid phone handling at lights |
| Montreal (construction seasons, frequent lane shifts) | Lane changes and braking spikes; trip detection errors if phone is loose | Use a stable mount; avoid keeping the phone in a bag/cupholder; review trips weekly early on |
| Calgary / Edmonton (more steady highway segments) | Speeding events may matter more than braking events | Set a speed buffer; use cruise control where safe; watch “speed relative” triggers |
City-page SEO tip: The best “meaningful difference” is to add local friction points (congestion, commutes, seasonality) plus a short local checklist (what to ask insurers in that city/province). Pair that with province-accurate rules and official benchmarks where available (e.g., FSRA in Ontario).4
How to sign up (and avoid common mistakes)
Most UBI frustration comes from setup, not driving. If the app misses trips or misreads motion, your score can be misleading.
Common setup issues (and how to fix them)
- Battery optimization: Make sure the app can run in the background without being put to sleep.
- Permissions: If the program requires “always” location or motion permissions, set them correctly (and re-check after OS updates).
- Stable mounting: A phone sliding in a cupholder can create motion patterns that look like harsh driving.
- Bluetooth/vehicle detection: If your app uses Bluetooth to detect trips, pairing issues can create missing trips.
- Multiple drivers: Confirm how trips are assigned and how to correct misattribution.
What to document so you can dispute issues
- Dates/times of missed trips
- Screenshots showing gaps or misclassified trips
- Phone model + operating system version
- Support ticket numbers or chat transcripts
What to do next: In the first week, check the app after every few trips. Fix recording problems immediately-don’t wait until renewal month.
How UBI affects your premium (flowchart)
flowchart TD A[Start] A --> B[Check UBI available] B --> C[UBI not available] B --> D[UBI available] D --> E[Check discount only] E --> F[Discount only] E --> G[Can surcharge] F --> H[Enroll] G --> I[Decide on risk] H --> J[Record trips] I --> J[Record trips] J --> K[Score calculated] K --> L[Score good] K --> M[Score not good] L --> N[Discount at renewal] M --> O[Lower discount or higher premium] N --> P[Shop at renewal] O --> P[Shop at renewal]
FAQs
What should I prepare before getting quotes for Usage-Based Auto Insurance in Canada?
Have your driver details, vehicle information, and a clear coverage baseline (liability limit, collision/comprehensive, deductibles, endorsements). Then compare every quote on that same baseline.
Is it better to use a broker or buy direct?
Either can work. A broker can compare multiple markets; direct insurers can be fast online. The best approach is to compare several offers based on coverage, service, and the base premium-not only the UBI discount label.
What factors most affect UBI pricing outcomes?
Beyond your driving score, insurers still rate you using traditional factors (territory, claims/convictions, vehicle, annual kilometres, coverages, deductibles). UBI is usually one lever on top of that baseline.
Can I quit a UBI program later?
Usually yes, but the impact varies. Some programs describe losing the discount if you unenroll and note that certain adjustments may continue depending on program rules-confirm the exact policy wording before enrolling.6
Does pay-per-km insurance replace UBI?
Not necessarily. Pay-per-km is primarily distance-based; UBI is behaviour-based (sometimes with distance included). If you drive very little, pay-per-km can be worth comparing against both standard policies and UBI.12
Editorial standards / methodology
We prioritize Canadian regulators (where available), crown/public auto insurers (where applicable), and major Canadian insurer program pages and FAQs for telematics specifics (discount ranges, monitoring requirements, and opt-out notes). Premium benchmarks are benchmarks only: your price depends on location, vehicle, driving record, coverages, deductibles, and discount eligibility. Rules and availability can change by province and insurer, so confirm details when you request quotes.124
Update note
- Last updated: December 27, 2025
- Reviewed structure, expanded program comparisons, and added Ontario benchmark tables using FSRA published averages.
- Checked insurer-published discount ranges and renewal adjustment notes for major UBI apps.
Disclaimer
This article is for general information only and isn’t a quote, contract, or legal advice. Coverage and eligibility depend on policy wording and provincial rules. Confirm details with your insurer or broker before you buy, enroll in UBI, or change coverage.
Sources (numbered footnotes)
- Statistics Canada – “Impacts of rising costs and claims on personal automobile insurance” (notes provincial regulation + public/private structures). https://www150.statcan.gc.ca/n1/pub/11-621-m/11-621-m2025003-eng.htm
- Insurance Bureau of Canada (IBC) – “How to Buy Auto Insurance” (public insurers in BC/SK/MB; Quebec bodily injury public component). https://www.ibc.ca/insurance-basics/auto/how-to-buy-auto-insurance
- Insurance Bureau of Canada (IBC) – “Mandatory auto coverages where you live” (requirements vary; confirm locally). https://www.ibc.ca/insurance-basics/auto/types-of-auto-coverage/mandatory-auto-insurance-requirements
- FSRA (Ontario) – “Your average premium” (Ontario average premium table incl. GTA/other urban/rural). https://www.fsrao.ca/consumers/auto-insurance/understanding-auto-insurance-rates/your-average-premium
- TD Insurance – TD MyAdvantage program page (activation discount + premium adjustment claims). https://www.tdinsurance.com/products-services/auto-car-insurance/td-my-advantage
- TD Insurance – TD MyAdvantage FAQ / help content (notes discount/surcharge continuity and program behaviour). https://www.tdinsurance.com/products-services/auto-car-insurance/tips-advice/my-advantage-faq
- Intact Insurance – my Drive FAQ (enrolment discount + “save up to” claims). https://www.intact.ca/en/personal-insurance/online-services/my-drive/faq-mydrive-v2
- Desjardins – Ajusto program page / FAQ (sign-up discount; monitoring period; premium adjustment up/down). https://www.desjardins.com/en/insurance/auto/ajusto.html
- Aviva – Aviva Journey program page (enrolment discount; up to 20% discount; up to 5% increase). https://www.aviva.ca/en/journey/
- belairdirect – automerit FAQ (automatic enrolment discount; up to 25% claim). https://www.belairdirect.com/en/app/faq-automerit.html
- belairdirect – automerit activation guide (publishes average savings and share of users receiving a discount). https://www.belairdirect.com/en/user-guide/activate-automerit.html
- CAA MyPace – program pages (pay-as-you-go / low-mileage positioning; base + per-km mechanics). https://www.caamypace.com/
- Office of the Privacy Commissioner of Canada – PIPEDA overview / fair information principles (consent, limiting collection, retention, access). https://www.priv.gc.ca/en/privacy-topics/privacy-laws-in-canada/the-personal-information-protection-and-electronic-documents-act-pipeda/
- belairdirect blog – “What is the average car insurance cost in Canada (2025)?” (publishes province-level average premium figures labelled for 2024; treat as a benchmark only). https://www.belairdirect.com/blog/car-insurance-cost
About the Author: ALAN ISIK
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.
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…