Pay-as-you-go car insurance could be possible for P.E.I. drivers

The Canadian Automobile Association (CAA) will be speaking with P.E.I.'s superintendent of insurance about bringing pay-as-you-go auto insurance to the Island.

The company is launching a pilot project in Ontario this summer called CAAMyPace,allowing drivers there to keep an eye on how much they driveand only pay for auto insurance based on that mileage.

• Drivers take on car insurance companies for coverage you can't get in Canada

While there's no guarantee that pay-as-you-go insurance will hit the Island,MatthewTurack, the president of CAAInsurance, did say that itwill be speaking with regulators in all four of the Atlantic provinces this summer about incorporating the program in the future.

"We're going to work with each one of them individually taking the experiences we have gotten from Ontario and really look at what is the right fit for each individual province," he said.

'It gives more control to the driver'

For those in the pay-as-you-go program, Turack saysdrivers pay in 1,000 kilometre increments and that a USB-sizeddevice will be pluggedinto the car tomeasure your mileage.

"This allows people to pay for the mileagethey're driving in a verified way but really only get billed when they hit those increments. It gives more control to the driver," he said.

If you drive very little, 1,000, 2,000, 3,000 kilometres, then you're going to save a lot more. Matthew Turack

He said CAAMyPace is ideal for those driving fewer than 9,000 kilometres per year, like retired people, those with a shorter commute and more.

"If you drive very little, 1,000, 2,000, 3,000 kilometres, then you're going to save a lot more. If youdrive closer to that 9,000 than your savings will be less," he said.

Those who use one car for longer commutes and a second car for shortertripscan also benefit, he said, for drivers who want to have smaller premiums on the car that's driven less.

"That fits their lifestyle because you can put one car on traditional auto insurance and a second car on the CAA MyPace and really save."

More P.E.I. news