Pay as you go for car insurance

July 03, 2018, Kitchener, Ontario

Posted by: Robert Deutschmann, Personal Injury Lawyer

We have pay as you go cell service, now we have pay as you go car insurance. This is new for Ontario and is being advertised as the first of its kind for Canada.

It is designed for low kilometer motorists who drive fewer than 9,000 km/year. CAA Insurance is calling it MyPace and billing it as an option for drivers starting in July. It will allow motorists to monitor how much they drive, and then to pay for the insurance on the mileage accordingly.

The MyPace will rely on a plug-in device that connects the car to a mobile app or web portal. It will track the time, date, kilometres and distance total driven. It is distinct from other programs available that adjust your premiums according to speed of the car and breaking patterns which gauge personal driving habits and driver risk. CAA calls it a welcome option for drivers looking to purchase insurance. Drivers will get notices each time they approach a 1000 km threshold of driving. If they exceed 9000 km in a year they will pay the full premium of the policy instead of a fraction of it.

The question that underlies this trend hasn’t changed though. Why are we paying such high premiums in Ontario and putting up with ever decreasing benefits which are becoming more and more costly to obtain as insurers drag injured people through the courts and tribunals?

Ontario is well known to have the highest insurance rates in Canada, with average Ontario premiums being double that of the average for the rest of Canada. You can find more about how we over pay in Ontario and the record amounts of money being raked in by insurers in my previous blog post on the Lazar Report. The Toronto Star reported on the report which called our insurance regime ‘one of the least effective in Canada’. 



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About Deutschmann Law

Deutschmann Law serves South-Western Ontario with offices in Kitchener-Waterloo, Cambridge, Woodstock, Brantford, Stratford and Ayr. The law practice of Robert Deutschmann focuses almost exclusively in personal injury and disability insurance matters. For more information, please visit or call us at 1-519-742-7774.

It is important that you review your accident benefit file with one of our experienced personal injury / car accident lawyers to ensure that you obtain access to all your benefits which include, but are limited to, things like physiotherapy, income replacement benefits, vocational retraining and home modifications.

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