Telematics (Usage-Based) Car Insurance in Canada 2025

Updated March 2025  |  10 min read

What Is Telematics Insurance?

Telematics insurance — also called usage-based insurance (UBI) or pay-how-you-drive insurance — uses technology to monitor your actual driving behaviour and adjust your premium based on observed risk rather than relying entirely on demographic proxies like age or postal code.

The monitoring is done through a smartphone app or an OBD-II plug-in device that connects to your vehicle's diagnostic port. The system collects data about how you drive, including speed, acceleration, braking, cornering, time of day, and total distance driven. This data is used to calculate a driving score that influences your premium.

How Telematics Programs Work in Canada

Most Canadian telematics programs work as follows:

1. You sign up for the program (usually at your renewal or when starting a new policy)
2. You download an app or install a device
3. For a monitoring period (typically 90–180 days, sometimes the full policy year), your driving is tracked
4. At the end of the monitoring period or at renewal, your driving score is calculated
5. Your discount (or surcharge, in some programs) is applied to the relevant portions of your premium

Major Canadian Telematics Programs

Intact myDriving

Intact is the largest property and casualty insurer in Canada and offers myDriving in Ontario and other provinces. The app monitors acceleration, braking, cornering, and speeding. Discounts of up to 25% are available for high-scoring drivers. Intact uses a smartphone app rather than a plug-in device.

Belairdirect Ajusto

Belairdirect (a division of Intact) offers Ajusto through a smartphone app. Available in Ontario, Quebec, and Alberta. Monitors similar behaviours to Intact myDriving. Discounts of up to 25% claimed.

Desjardins Ajusto

Desjardins — a major Quebec-based mutual insurer — offers Ajusto in Quebec and Ontario. Strong penetration in Quebec. App-based monitoring with similar factors. Discounts available up to 25%.

Aviva Drive

Aviva's telematics program available in Ontario and Atlantic Canada. Smartphone app with a 200 km initial test drive that sets your preliminary discount, followed by ongoing monitoring.

CAA MyPace

CAA's pay-per-kilometre program for low-mileage Ontario drivers. You pay a base rate plus a per-kilometre fee for actual kilometres driven. Ideal for retirees, work-from-home drivers, or anyone who drives very few kilometres annually. Available through CAA Insurance in Ontario.

What Driving Behaviours Are Scored

While scoring methodologies vary by insurer, most telematics programs evaluate:

• Hard braking events: Sudden stops indicate either following too closely or distracted driving
• Hard acceleration: Aggressive acceleration from stops is correlated with higher accident risk
• Speeding: Driving above posted speed limits, particularly significantly above limits
• Time of day: Night driving (particularly between midnight and 4 am) is higher risk than daytime driving
• Phone distraction (some programs): Phone handling while driving is detected by accelerometer and GPS data
• Total kilometres: Some programs factor in annual mileage directly

Who Benefits Most from Telematics

Telematics programs benefit drivers whose actual driving behaviour is better than their demographic profile suggests:

• Young drivers: Under-25 drivers pay high rates due to demographic risk factors. A careful young driver who avoids night driving and hard acceleration can earn meaningful discounts.
• New drivers: Similar to young drivers — telematics lets you demonstrate safe behaviour rather than paying the average new-driver rate.
• Low-mileage drivers: If you drive fewer than 10,000 km per year, some programs reward you for it.
• Retired or part-time workers: Daytime-only, limited-mileage driving profiles score well in most telematics systems.

Potential Downsides of Telematics

Not all programs are purely opt-in discounts. Some can actually increase your premium if your driving score is poor. Before enrolling:

• Confirm whether the program is discount-only (rates can go down but not up) or bidirectional (rates can go up or down)
• Understand what data is collected and how it is used
• Consider privacy implications of continuous location and behaviour monitoring
• Be aware that other drivers using your vehicle will affect your score

The Future of Telematics in Canada

Telematics adoption in Canada is growing steadily. As more insurers refine their programs and consumers become comfortable with the privacy tradeoffs, UBI is expected to become increasingly common. BC's ICBC, in its new enhanced care model, is exploring expanded telematics-based rating to further personalize premiums based on actual driving behaviour.

For careful drivers willing to share their driving data, telematics represents one of the clearest paths to meaningfully lower car insurance premiums in Canada in 2025.