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Does being a good driver mean you can save on your car insurance?

Recently, the insurance landscape has evolved to include usage-based insurance as a way to change how insurance premiums are calculated and offer savings to consumers for good driving habits. Although usage-based insurance already exists in the United Kingdom and United States, a few insurance companies are starting to offer it in Canada. We break down what you need to know and whether it’s right for you.

What is usage-based insurance?
Usage-based insurance (UBI) or sometimes referred to as telematics, is a way that insurance providers offer insurance premium discounts for safe driving habits. A device is installed in your vehicle that tracks your driving habits to determine how much you can save on your insurance premium.

While some conspiracy theorists believe the device acts as a GPS and will track and monitor where you drive, this isn’t the case. Usage based devices for insurance only monitor:

  • Acceleration – Are you accelerating on the gas to make the next light?
  • Hard braking – Are you following too close and frequently slamming on the brakes?
  • Time of day – If you’re driving during 12 a.m. to 4.am, you could be more likely to get into an accident.

Is it right for you?
UBI allows drivers to have some control over what they pay for auto insurance. If you’ve adopted some bad habits you were unaware of, using UBI can keep driving safely top of mind and gives you insight into your own behavior.
Plus, there’s the added benefit of receiving insurance discounts for being a better driver. Your premiums will never increase based on the data collected. The purpose is to offer better discounts for safe drivers.

Get rewarded now for good driving habits.
If you live in Ontario, Intact Insurance offers the My Driving Discount™ with an instant 10% off when you install the free money-saving device. As your vehicle monitors your driving habits, you can save up to a further 15% off your premium at renewal.

There’s also an online dashboard you can log into at any time to review your habits and make sure you’re on the right path to getting the discounts you want. Intact Insurance will extend UBI into Alberta later in 2015.

Talk to an Ontario based BrokerLink broker on how you can save up to 25% on your insurance today with the Intact My Driving Discount or click here to learn more.

32 Comments

  1. Deanna R. Jones

    It’s good to know that I can be rewarded by auto insurance companies for having good driving habits. I didn’t know that I could log into an insurance dashboard to look at the discounts that I can be eligible for. That seems like a great incentive to drive more safely.

  2. Mia Boyd

    Thanks for the information. I’ve always been a good driver, so it’s good to know that I could possibly save money on my auto insurance. I’m going to look into follow your tip about using a dashboard device to watch my driving. That’ll be able to tell the insurance company how good of a driver I am!

  3. Alex Jennings

    I think it’s great that companies are allowing their customers to prove their safety; thus resulting in lower premium costs. Usage-based insurance (UBI) is innovative, and coincides with our current technological advances. I like to speed sometimes, so I’m hoping that I’ll be able to amend that bad habit with a product like this.

    Alex Jennings |

  4. Jamarcus Dantley

    I think it’s a good idea that insurance companies offer lower rates for good drivers. It’s interesting how they can monitor some of your driving habits. It does seem like using that could help you be even more careful. Thanks for sharing some more information.

  5. DoloresB

    It’s cool that you can get rewarded for good driving. I think this is a rewarding option for a lot of people. It’s not right for everyone, but it can definitely be a benefit to people who don’t get into accidents except for rare occasions.

  6. Brandon Roberts

    My wife and I just got our car insurance bill the other day, and for some reason, the cost of it went up. We aren’t sure why it did, but we really want to get it back down to where it was at. I had no idea that being a safe driver could help lower the cost of car insurance. But, it makes total sense on why it would. I’ll have to make sure I start driving a lot safer in order to lower my bill.

  7. Irena Ryans

    Thanks for the information. My husband just purchased a car, so obviously we need to get car insurance now. I’m going to follow your tip about making sure he’s a good driver; I had no idea that that could lower your insurance price! What exactly does being a good driver entail? I’ll ask our new provider if that’s true or not. Let’s hope it is!

  8. Fred Summers

    I like that the key is that the premiums shouldn’t go up using the data. I think that I drive more dangerously than I should and I don’t realize it. So having these track me might not benefit me as much as others in my family. I wouldn’t be opposed as long as bad driving wasn’t punished.

  9. Rachelle Reeves

    I’ve never heard of usage-based insurance before. I think that would be a good thing for me to get, because I consider myself a pretty safe driver. It would be nice if I could save on insurance because of my good driving habits.

  10. Charlotte Eddington

    The “acceleration” and “hard braking” questions you asked, are great. I am totally guilty of doing those things. As much as I try to deny it, I can’t. However, I haven’t been in an accident, yet. But, it is always better to be safe than sorry. Maybe driving more safely will lower my auto insurance.

  11. Douglas Brown

    I have heard a lot about these types of rewards that people are getting for good driving habits, and we hope to be on the receiving ends. Luckily for us, both my wife and myself are considered “good” drivers’ with no real hits on our records. We have also not had an accident in quite some time.

  12. Rhys Rawson

    Thanks for the information on usage-based insurance. I thought the rates were based on how often I make claims–I didn’t know a device was installed in my vehicle. I try not to accelerate or brake too hard…this might be a great option for me to get lower rates on my insurance! Great article.

  13. Lily de Grey

    Excellent article! I’m glad that I stumbled upon it because I’ve been thinking about getting new car insurance. I didn’t know that insurance companies had usage-based insurance plans; that sounds like it could be really helpful! I’m going to talk with my insurance provider and see if they can give me more information about this service. Thanks for sharing this with us—it’s been very informative.

  14. Kyle Ross

    This is some great information, and I appreciate your point that your premiums won’t increase based on the results of a UBI. I didn’t know they had devices that could track all of that for safety information! I’m a pretty safe driver, so I think I’ll look into using a UBI to see if I can save on insurance. Thanks for the great post!

  15. Steve Holt

    Thanks for the information! Knowing about any discounts on my car insurance really helps. It’s good to know that there are insurance companies that offer discounts for good driving habits. That will not only help people save money on their insurance plan, but also encourage drivers to make the roads more safe for others. I feel like that’s a really important thing to encourage customers to work on so that the roads will be safer for others.

  16. Brandon Roberts

    I am so glad that I was able to find this! My son is now paying for his own insurance, and he wants to make sure he does what he can to save on it. So I really appreciate you making me aware that being a good driver can help save on insurance. I’ll make sure I talk to my son about this right away.

  17. James Bay

    I have recently been looking for new car insurance. I never new UBI existed. I think I will need to look into this. It could be a good option for me. Thank you for your help.

  18. Cohen Jacobson

    Its about time that good drivers started being rewarded for their careful driving. This is perfect now that we can literally be measured for our good driving habits and show it to our insurance company to help save some money. Do all insurance companies provide the device to measure it? Thanks for the great post.

  19. DoloresB

    I think it’s great that people can get rewarded for good driving. Insurance is pretty expensive, so it’s nice to find as many ways as you can to get the price down. Good driving is a pretty easy way to do that.

  20. Veronica Marks

    It’s very interesting that it only monitors acceleration, braking, and time of day. I feel like there are so many more factors involved in safe driving, particularly phone usage and tailgating. I suppose a device that tracks those would be pretty sophisticated, though. Good information!

  21. Linda Tucker

    Wow, I had no idea that a simple tracking device could end up saving people so much money on their car insurance! This tracker is definitely awesome too since it rewards good driving behavior. Plus, I feel like this device could help you become a better driver in the long run since it lets you know what your habits are!

  22. I didn’t even know about usage based insurance but it sounds perfect for me. I’ll have to look into that. Thanks so much for sharing.