Telematics, also referred to as Plug and Save, is a new product designed to reduce your auto insurance rates in the province of Ontario.

It is a small device that is installed in your vehicle and monitors your driving. For example, it will keep track of your braking, your takeoff  (let’s say from a red stop light) and how many kms your vehicle has been driven. The device also monitors the time of day you do most of your driving. Perhaps for you it’s 2am and for someone else is it during the day. It offers insight into your driving habits, giving a clear picture of how you use your car.

Insurance providers take this technology and provide further discounting based on usage. That’s why it’s called usage based insurance. So, if the data gathered shows that you are a low-risk driver, for example someone who does not drive aggressively, your auto insurance premiums will reflect that. You would essentially be rewarded for your good driving habits.

~ Update February 2021: Insurers in Ontario now have the option to leverage surcharges for poor driving behaviour in their telematics offerings. Learn more here. ~

Some companies offer 10% off of rates just for signing up, then with monitoring you will receive the rate they believe based on the data captured. Further discounting of up to 25% off your auto rates is possible with Telematics.

Interested in learning more on how Telematics or Plug’n Save can lower your auto insurance rates? Contact us anytime 1-855-237-2905 or provide your information online.