Jan. 18, 2021 — DRIVERS in P.E.I. will soon be the latest to gain access to Canada’s only pay-as-you-go auto insurance.
CAA Insurance will begin offering its ‘My Pace’ usage-based insurance coverage in the province next month.
Matthew Turack, the company’s group president, said consumer interest in the coverage has been tremendous since it was first offered in 2018 in Ontario — with a growth rate of 250%.
My Pace was launched in Nova Scotia and New Brunswick last year.
Mr. Turack said CAA has noticed an uptick in interest in coverage each time new pandemic-related lockdown measures are announced.
“It was always our intention to be in the Maritimes, but the urgency and the relevancy to consumers really peaked at a new level through the pandemic,” he said.
Regulators in the Maritime provinces have very receptive to the new coverage, Mr. Turack said, partly because of the success of the offering in Ontario.
“In today’s situation, that flexible option and opportunity is something we’re really proud to offer.”
Participating drivers receive a device from CAA that plugs into their vehicle, which measures the distance driven.
The customer pays in increments of 1,000 kilometres and receives an alert when they are close to that level. An automatic payment is taken at 1,000 kilometres and the counter starts again.
“In today’s environment when people are driving less and staying at home and not commuting, it is a great way for people to save,” Mr. Turak said.
“Over the last few years we’ve seen that people are saving between 40 to 60% on their premium by being in My Pace.”
He said those who drive 9,000 kilometres per year or less will likely see savings. Those who drive more are charged what the standard policy would cost.
There is no penalty for driving more than 9,000 kilometres.
(For more independent coverage of Canadian p&c industry news and trends, please choose the ‘Subscribe’ tab on our main page or email email@example.com for more information).