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Telematics use in Ontario auto insurance

Although relatively new to the insurance automobile landscape, telematics is not new technology. It has been used in Quebec for several years and in Europe even longer. Formula One race teams even use it to help monitor and improve their performances.

The devices which are now available to our client are small and easy to install. They perform the following tasks.

  • A high frequency motion sensor will monitor how a vehicle is driven and capture that information.
  • Data is transmitted via a SIM card
  • Where and when the vehicle is driven is captured with the GPS unit

This device and the costs to operate it are included in your insurance premium.

After the device has been installed in your vehicle it will begin to collect data on your driving. This data is sent securely to the company where your driving style is assessed. Feedback on your driving habits is available to you online or with one company, a smart phone application.

The driving habits that are monitored to determine your score; speed, acceleration, braking, cornering, time of day and your vehicles GPS location. One of our companies does not record the time of day and another doesn’t capture the GPS location.

Not all vehicles are equipped to work with the telematics device. Most vehicles that were manufactured since 1996 are equipped with an OBD port which is what this unit plugs into.

A new policy will automatically include a partial good driver discount. This can be improved if proof of good driving is confirmed after the device has been installed. If however your driving behaviour is not consider good you may not receive an additional discount and the initial discount may be removed.

Including the initial 10% discount, with good driving you can earn up to an additional 15-25% discount (depending on company).

We currently represent two separate companies that have an automobile insurance policy offered with the installation of a telematics box. One is a special line only offering insurance to driver 24 and under and the other to all drivers that qualify.

If you are interested in learning more about telematics or would like a quotation to see what your premium could be, please call our office and ask for one of our brokers to assist you.

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