Earlier this year, CAA Insurance announced it would be introducing a new pay-as-you-go insurance plan in Ontario. Such plan is now available to drivers in the province, allowing those who typically use low mileage to reap of the benefits.
The CAA MyPace Program lets drivers pay for insurance for every 1,000 kilometres that they drive. Matthew Turack, the president of CAA, says the program is tailored for drivers who travel less than 9,000 kilometres a year, as they pose "less risk on the road."
"Low mileage drivers ... deserve to pay less for their auto insurance premiums," said Turack.
Participating drivers will install a telematics device into their car that will track that vehicle's mileage. At every 1,000 kilometres, the driver will be billed automatically. To sign up, drivers will have to pay an initial base rate, as well as the cost of the first 1,000 kilometres.
CAA claims that motorists could save up to 30% with the pay-as-you-go plan compared to conventional auto insurance policies, if they drive 5,000 kilometres.
For more information, visit CAA's website.
Source: Insurance Business Magazine