How these driving apps could lower your auto insurance

KEY FINDINGS

• Telematics can help reduce premiums: Safe and consistent driving habits tracked by telematics apps can lead to discounts on auto insurance.
• Different apps cater to different needs: Options like CAA MyPace, Intact’s my Drive, Allstate’s Drivewise, and Desjardins’ Ajusto offer unique features for various driving patterns and preferences.
• Privacy concerns remain a factor: While these programs are voluntary, some drivers worry about how their data is used and shared.

As more employers roll out return-to-office mandates, many Canadians are driving more frequently. At the same time, drivers continue to look for ways to manage rising auto insurance costs.

How does usage-based insurance work in Canada?

Usage-based insurance (UBI) adjusts premiums based on how safely and how often a person drives. In Ontario, insurers can apply both discounts and surcharges using telematics data, which means driving behavior can directly influence the price of coverage.

Telematics apps — offered by multiple major insurers — use phone sensors or a plug-in device to capture real-time information such as speed, braking, and time of day. 

Safe and consistent driving may lead to lower premiums, while higher-risk patterns may reduce discounts or, in Ontario, increase the premium.

What is telematics?

Telematics is the technology that connects telecommunications and data processing to track and monitor a vehicle’s performance and location. By using a small device installed in your car — often called a telematics box — data such as your speed, driving patterns, and engine diagnostics are collected and securely transmitted over mobile networks.

The information is then transmitted to the insurer, who uses it to assess a driver’s risk profile and apply discounts for consistently safe habits. The apps also provide feedback that helps drivers understand their own behavior over time, which can support safer and more consistent driving.

Read more: The Rates.ca Annual Best Auto Insurance Study

What are the apps that are used?

If you’re interested in using telematics, here are four apps to try:

1. CAA MyPace (Pay-Per-Kilometre)

CAA MyPace remains one of the leading options for low-mileage drivers, now especially relevant for those who commute only a few days per week.

• The mileage threshold for potential savings is 12,000 km/year.
• You pay a base rate plus blocks of 1,000 km, automatically reloaded.
• Requires a telematics device and the MyPace app.

2. Intact Insurance — my Drive

Intact’s program offers personalized pricing tied directly to day-to-day driving behavior.

• Save up to 30%, including a 10% activation discount.
• Premium adjustments based on speed, focus (phone distraction), and smoothness (braking and acceleration).
• Includes tools such as Crash Assist, recall alerts, and weather notifications.

3. Allstate — Drivewise

Drivewise is popular among drivers who want the option to save without the risk of penalties.

• Up to 30% savings, plus a discount just for enrolling.
• Tracks speed, braking, trip times, and time of day.
• Data will not increase your premium under Allstate’s current rules.

4. Desjardins — Ajusto

Ajusto remains one of the most comprehensive behavior-based programs in Canada.

• 10% discount for the first 6 months when you sign up.
• Tracks speeding, cornering, phone distraction, and late-night driving.
• Uploads data via Wi-Fi, so a mobile data plan isn’t required.
• Available in Ontario and Quebec.

Read next: As insurance premiums rise, quotes for usage-based auto insurance increase by nearly 20%

Privacy and the future

With all the data being tracked and shared with providers, some people are concerned about privacy and how this might negatively impact their car insurance rates.

For example, what if the app determines you are making too many hard stops (but you live in the city, and this is common in city driving)? Others worry that these apps may somehow have access to your other private data and be able to use it against them.

These programs remain voluntary. If the idea of sharing driving data doesn’t feel comfortable, drivers can continue using traditional auto insurance.

As telematics becomes a more common part of how insurers assess risk, drivers have more ways than ever to align their premiums with how they actually drive.

For those who maintain safe, consistent habits — or who drive fewer kilometers — UBI can offer meaningful savings and greater transparency. For others, traditional insurance may still be the better fit. Ultimately, choosing whether to enroll comes down to comfort with data sharing and confidence in your driving habits.

Learn more: Over half of drivers of connected cars are concerned about data privacy