CAA to offer pay-as-you-go car insurance policies on P.E.I.
Device you place on your vehicle will tell insurance company how much you are driving
CAA will start offering a new insurance policy on P.E.I. next month that recognizes the lower risks associated with spending less time on the road.
The MyPace insurance policy charges premiums based partly on how much you drive your vehicle.
"You have a base rate, and then for every certain amount of kilometres you use, you pay a little bit more," said Gary Howard, senior vice president of marketing and communications for the Canadian Automobile Association (CAA).
The base rate depends upon your location and driving record, and covers the first 9,000 kilometres driven. The company's website notes: "At 9,000 kilometres, there is no longer a savings benefit with CAA MyPace and a traditional Auto Insurance policy may suit you better."
CAA first made the MyPace policies available in Ontario about a year and half ago, and company officials there said it spiked in popularity when the COVID-19 pandemic lockdowns kicked in. Policies are already available in Nova Scotia and New Brunswick as well.
To qualify for the insurance, you will have to plug in a USB device that measures your mileage and provides that information to CAA. You can download an app to monitor how much you are driving.
The device also tracks the speed and location of the vehicle, but that information is available only to the owner.
Howard said that at some point it could be possible to use the device's information to lower rates further for people who are regularly driving within the speed limit.
He added that is "not a place we're prepared to go at this point, just because of privacy issues…
"There's been a lot of talk about this over the past few years, companies knowing a little bit too much. I think at some point we will get there, based on different elements that tell us how safely you drive."
CAA has approved the insurance to be sold on P.E.I. starting Feb. 15.
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With files from Island Morning