Usage Based Insurance has recently been rolled out throughout Canada by various insurance companies. Here’s how it works –
The insurance company will supply you with a Telematics device. This device is a small telecommunication unit that is connected to your car. This device sends, receives and stores information. The information is forwarded to the insurance company in order to monitor your driving habits. The idea behind Usage Based Insurance is that those drivers with good driving habits should pay less than those with poor driving habits.
Driving habits such as the following are monitored –
Insurers that offer this option will discount your premium.
This program is ideal for young drivers as driving habits can be monitored and viewed on-line.
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