Usage-Based Car Insurance Canada — Telematics Guide

How Canadian telematics programs work, which insurers offer them, how much you can save, and whether the privacy trade-off is worth it.

What Is Usage-Based Insurance (UBI)?

Usage-based insurance (UBI), also called telematics insurance, uses technology to track how and how much you drive. Instead of pricing your policy solely on demographic factors (age, location, vehicle), UBI incorporates your actual driving behavior. Safe, low-mileage drivers can earn significant discounts — typically 10–25% — while high-risk drivers may see less benefit or pay more.

How Telematics Works in Canada

Canadian UBI programs use either a plug-in OBD-II device (plugged into your car's diagnostic port) or a smartphone app. The technology monitors:

• Speed: How often and how severely you speed
• Hard braking: Sudden stops suggesting aggressive or distracted driving
• Hard acceleration: Rapid acceleration patterns
• Cornering: Sharp turns at speed
• Time of day: Night driving (11pm–5am) carries higher risk weighting
• Mileage: Annual kilometres driven
• Phone use: Some apps detect phone handling while driving

Major Canadian UBI Programs Compared

Program	Insurer	Method	Max Discount	Provinces
myDriving	Intact	App	25%	ON, AB, QC, Atlantic
Tranzact	Aviva	App	25%	ON, AB
Ajusto	Desjardins	App	25%	ON, QC
Maestro	Belairdirect	App	20%	ON, QC, AB
MyPace	CAA Insurance	OBD device	Pay-per-km	ON
YouDrive	The Personal	App	25%	QC, ON

Who Benefits Most from UBI

Telematics programs deliver the largest discounts to drivers who:

• Drive under 15,000 km/year (remote workers, urban transit users)
• Drive mostly during daytime hours on weekdays
• Brake and accelerate smoothly
• Are young or new drivers who can't yet demonstrate experience history
• Recently had their premium raised by a conviction and want to offset the surcharge

Privacy Considerations

Telematics programs do collect data about your driving. Key questions to ask before enrolling:

• Is the data used only for discount calculation, or also for claims investigation?
• Can the insurer share driving data with third parties?
• What happens to your data if you cancel the policy?
• Can a poor telematics score increase your premium above what it would be without UBI?

Most major Canadian UBI programs are "discount only" — meaning a poor score won't raise your rate above your base premium, it simply reduces the discount you earn. Always confirm this in writing before enrolling.

CAA MyPace: Pay-Per-Kilometre

CAA Insurance's MyPace program is unique in Canada — it charges a base rate plus a per-kilometre cost, making it ideal for very low-mileage drivers (under 9,000 km/year). Drivers pay a daily rate for days the car is used plus a per-km rate, with a monthly maximum cap. Urban households with a second or third car that rarely moves can see significant savings.