Everything to know about pay-as-you-go insurance in Ontario, according to an expert

With Toronto's public transit options, the increased number of work-from-home positions, and a general desire to save money wherever possible, plenty of people simply don't drive as much as they used to.

But that doesn't mean they aren't driving at all.

If you're paying full price for auto insurance while driving less than 12,000 kilometres a year, a pay-as-you-go option might be just the thing to give you the coverage you need for the distance you go. In Ontario, one option available to drivers is CAA MyPace®.

How CAA MyPace works

“Unlike a traditional insurance policy where you're paying on a monthly basis, drivers pay a base amount, and then you're charged in 1,000 kilometre increments based on how much you drive," Elliott Silverstein, Director of Government Relations at CAA Insurance, tells blogTO.

The less you drive, the less you pay, which is a game-changer for people who take public transit to work but still drive other places, older adults who are beginning to drive less, and people who simply don’t venture too far from home.

"For example, if you only drive 5,000 kilometres a year, you're going to receive five installments instead of being charged your monthly installments under a traditional plan,” says Silverstein. “Let's say in May you drive a few hundred kilometres, but don't hit that 1,000-kilometre threshold until July. You won’t be billed until you hit the threshold.”

Or maybe you're going on a long weekend road trip and racking up some extra kilometres. You'll simply be charged in that month for the next iteration of the 1,000 kilometres.

"It's designed to help people find affordable auto insurance that provides full coverage that's also suited to their lifestyle," Silverstein says.

A policy for your lifestyle

All you have to do is enroll in CAA MyPace, install the CAA MyPace device into your car so it can track your kilometres, and download the CAA MyPace app to your smartphone to monitor your usage. Then all there's left to do is hit the road!

And there's no need to worry about anything slipping through the cracks. CAA MyPace provides the exact same level of coverage as standard CAA Auto Insurance*, so that you can drive comfortably and enjoy the savings that come with driving less.

"The cost of living is quite high in all aspects, so if you're in a scenario where you're only driving a few thousand kilometres a year, you have the opportunity to be charged according to your actual driving lifestyle," says Silverstein. "I think a lot of people question why they didn't do this earlier."

Get your agent on the phone

If you're wondering if making the switch is the right call for you, Silverstein recommends talking to a licensed CAA Insurance Agent or Broker so you can go through various scenarios, understand the program, and decide if it's right for you.

"At the end of the day, you may be on the fence, but you could also be leaving money on the table that could be used for other parts of your household."

CAA knows a thing or two about protecting drivers, considering they’ve been doing so for over 120 years.

Contact them to get a complimentary quote for your auto insurance — and while you're at it, learn more about CAA’s offerings for home, travel, life, and pet insurance as well.

*Auto Insurance is underwritten by CAA Insurance Company.
Vehicle compatibility and enrollment in CAA MyPace® payment program is subject to terms and conditions.
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