Charlottetown, Prince Edward Island – Drivers on Prince Edward Island will be given the option to set their own pace when it comes to auto insurance rates, according to a report from Tuesday.
CAA (Canadian Automobile Association) will begin offering the MyPace insurance policy next month, an option that is expected to adjust rates to fit with the driving habits of customers.
“You have a base rate, and then for every certain amount of kilometres you use, you pay a little bit more,” said Gary Howard, senior vice president of marketing and communications for the CAA.
The base rate covers the first 9,000 kilometres driven as well as the location of the driver.
The company’s website notes: “At 9,000 kilometres, there is no longer a savings benefit with CAA MyPace and a traditional auto insurance policy may suit you better.”
MyPace has been available in Ontario for about a year and a half now and, according to the company, its popularity has spiked since the onset of the COVID-19 pandemic. MyPace policy options are also available in Nova Scotia and New Brunswick.
The policy will require a USB device that can be plugged into the vehicle in order to send data to CAA, via an app.
Howard said that at some point in the future, the USB device could be used to lower rates for drivers who regularly drive within the speed limit, but cited “privacy issues” as the most significant obstacle at the moment.
“There’s been a lot of talk about this over the past few years, companies knowing a little bit too much. I think at some point we will get there, based on different elements that tell us how safely you drive.”
CAA has approved the insurance to be sold on P.E.I. starting Feb. 15.
