Alberta’s first pay-as-you-go auto insurance policy is here

If you want to save some money on auto insurance because you drive your vehicle only on the weekend or for leisure, then this is for you. AMA has launched Alberta’s first pay-as-you go motor vehicle insurance policy for low-mileage drivers. Henna Saeed reports.

Alberta’s first ever pay-as-you-go auto insurance program has arrived and follows in Ontario’s footsteps in saving car owners some money.

The Alberta Motor Association (AMA) has introduced a distance based insurance product called MyPace, which gives people who don’t drive their cars as much as others a chance to save some money, as long as they are okay giving up their driving information.

The two prerequisites for the program are installation of a telemetric device and the make and model of the vehicle, as certain old cars and some new electric vehicles do not comply with the tracking device.

Jim Setch, AMA VP of underwriting, says the new program is aimed for people that drive fewer than 9,000 kilometres a year.

“We look to engage with our customers through one of our 150 or so agents, and sit down and make an estimate on how far your driving, in a fairly detailed way,” he says. “Taking for example, how far you drive to work everyday.”

He says they have been working on MyPace for over one year now and the intention is to provide affordable insurance options to members and also attract new clients.

The program will also apply to people with more than one vehicle.

“We think this a solution for those folks that have that spare pickup truck, for example,” Setch says.

Drivers enrolled in the MyPace program will receive a monthly bill of insurance depending on their car usage in the last thirty days and the base rate per kilometre will depend on usual factors like age, experience, violations, and past annual kilometres.

Setch says if someone enrolled in MyPace program is anticipated to cross the distance threshold, they can be transferred to another AMA auto insurance policy without any hassle.

AMA is also offering a MyRide program that can offer a discount for people that drive over 9,000 kilometres, but focuses on their driving habits.

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