Only 16% of Canadian drivers currently use usage-based insurance, even though 88% of those who do say they’d stick with it at renewal. That gap — between knowing about something and actually using it — costs the average safe driver somewhere between $100 and $600 a year in missed savings, depending on their mileage and habits.
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This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.
Awareness is climbing — 66% of 14,675 drivers surveyed online now know what usage-based insurance is, up five points from the year before. But the share of people who actually enrol has barely budged. The research points to a simple explanation: many drivers assume the setup is a hassle, or they worry about privacy, or they don’t think the savings are big enough to bother. The numbers tell a different story on all three fronts. Here’s what you actually need to know.
The central concept here is telematics — the technology that collects driving data so insurers can price your premium based on how you actually drive, rather than on statistical averages for your age, postal code, and vehicle type.
How Much Usage-Based Insurance Can Actually Save You
The savings from UBI aren’t uniform — they depend on which program you pick, how much you drive, and how you drive. The table below lays out the major Canadian programs and the discount ranges they公开.
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| Program | Provider | Maximum Discount | How It Works |
|---|---|---|---|
| my Driving Discount | Intact | Up to 25% | OBD-II device |
| Ajusto | Desjardins | Up to 25% | Smartphone app |
| MyPace | CAA Insurance | Up to 25% | Pay-per-kilometre |
| Drivewise | Allstate | Up to 30% | App or device |
| Aviva Telematics | Aviva | Up to 20% | OBD-II or app |
What these numbers mean in practice: a driver in Ontario paying $2,000 a year who qualifies for a 20% discount saves $400 annually. Over five years, that’s $2,000 — enough to cover a decent set of winter tires and then some. For low-mileage drivers under a pay-per-kilometre model like CAA MyPace, savings can reach $500 to $800 a year if you drive around 6,000 km or less.
What tends to make sense here is matching the program type to your driving profile. If you cover fewer than 10,000 km a year, a pay-per-kilometre plan usually beats a behaviour-based discount. If you drive a lot but drive smoothly, a behaviour-based program like Ajusto or Drivewise rewards you for what you do well. The mistake is picking one without checking the other.
Three Mistakes That Cost Canadian Drivers Money on UBI
Assuming the setup is a hassle
Igal Mayer, CEO of Rates.ca, put it bluntly: “It may be an image problem — as a digital offering that requires some set up, some may consider it an inconvenience.” The data says otherwise. 96% of UBI users found setup easy. Most programs work through a smartphone app you download in under two minutes, or a plug-in device that goes into your car’s diagnostic port. My first move would be to download the app before ruling it out — the inconvenience is mostly in peoples heads.
Overlooking the pay-per-kilometre option
CAA’s MyPace program lets you pay a base rate plus a per-kilometre charge. For someone driving 6,000 km a year, that can save up to 25% compared to a standard policy. The catch is that most drivers automatically compare behaviour-based programs without realising the distance-based model exists. If your annual mileage is low, you’re leaving savings on the table by not looking at both. Elliott Silverstein of CAA Insurance put it well: “One size does not fit all when it comes to auto insurance.”
Worrying about privacy without checking the facts
Most Canadian UBI programs do not track your GPS location in real time. Data collection is governed by PIPEDA, which requires insurers to limit what they collect to what’s necessary for pricing. You can also withdraw from most programs at any time, and the worst outcome is usually no discount — not a rate increase. If you’re still unsure about the fine print, it’s worth talking through the policy terms with a professional who handles insurance disputes regularly.
How to Pick the Right UBI Program and Enrol
Check your mileage and driving patterns first
Before you compare programs, know your numbers. How many kilometres do you drive in a typical year? Do you mostly drive during the day? Do you brake hard or accelerate aggressively? These three facts determine which model fits. If you’re under 10,000 km a year, start with pay-per-kilometre. If you drive more but drive smoothly, start with a behaviour-based program. If you work from home or are retired, you’re in the sweet spot for either.
Compare the right program type for your habits
Get quotes from at least two insurers. Compare a pay-per-kilometre option (CAA MyPace) against a behaviour-based one (Desjardins Ajusto or Intact myDrive). Gore Mutual’s Drive Good program offers a 10% upfront discount just for enrolling, plus weekly rewards for safe driving redeemable for gift cards, and up to 20% at renewal. That kind of structure matters if you want immediate savings rather than waiting for a full assessment period.
What to watch for during the monitoring period
Most programs monitor for 90 to 180 days before applying a discount. During that time, hard braking, rapid acceleration, and late-night driving (midnight to 4 a.m.) will lower your score. Some programs apply the discount to certain coverages only — read the fine print. If your driving habits change mid-period, some insurers adjust dynamically. A commuter who switched to remote work saw premium reductions without manually reassessing.
The future: UBI beyond discounts
Telematics is expanding beyond individual car insurance. Insurers are testing usage-based coverage for commercial fleets and ride-sharing drivers. ICBC in British Columbia has piloted a telematics program for new drivers. The research suggests that within a few years, telematics may become a standard offering rather than a discount program — meaning your premium could be based on your driving by default, not as an opt-in option. That shift is worth watching if you’re on the fence about enrolling now.
- Request UBI quotes from at least two insurers before renewal
- Compare pay-per-kilometre models against behaviour-based programs
- Check your annual mileage — prioritise pay-per-km if under 10,000 km
- Confirm in writing whether telematics data can be used to increase your rate
- Review app permissions and disable GPS access if the terms allow it
- Stack UBI discounts with winter tire, multi-vehicle, and claims-free savings
- Re-evaluate annually if your driving habits change
Frequently Asked Questions About Usage-Based Insurance
Can my premium increase because of telematics data? ▾
Is my location being tracked in real time? ▾
What happens if I withdraw from the program partway through? ▾
Which provinces offer usage-based insurance in Canada? ▾
Can young drivers really save 20-30%? ▾
Device vs app — which is more accurate? ▾
Why UBI Is Likely to Become the Norm for Canadian Drivers
The shift from guessing to knowing is already underway. Real-time data gives insurers a more accurate picture of risk than any combination of age, postal code, and vehicle type ever could. For drivers, that means premiums that actually reflect how they drive — not how someone in their demographic drives. The 88% retention rate among UBI policyholders suggests that once people experience it, they don’t want to go back to the old model. If you drive safely or keep your mileage low, the question isn’t whether you should switch — it’s how much you’re leaving on the table by waiting.
Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.
If this was useful, you might also want to read The Ultimate Guide to Budget-Friendly Living in Calgary: Save Big, Live Better.
Sources and Further Reading
How to Maximize Your Personal Insurance Coverage in Canada — A practical guide to reviewing your existing policies and making sure you’re not overpaying or under-covered.
Forget the 4%: The New Retirement Withdrawal Strategies for a Volatile Market — A data-driven look at how shifting your withdrawal approach can keep your savings on track when markets are unpredictable.
Canadian Underwriter (2026). Drivers are more aware of usage-based insurance, but take-up remains sluggish. 🔗
Lifetimes Canada (2026). Telematics Car Insurance in Canada 2026: Is Tracking Your Driving Worth the Discount? 🔗
Ridez Canada (2026). How Usage-Based Insurance Works in Canada: Is Telematics Worth It? 🔗
QuoteFinder (2026). The Pros and Cons of Usage-Based Car Insurance in Ontario. 🔗
