What is Pay as You Drive Insurance

Glossary - Letter - P

Pay as You Drive Insurance: Definition

Pay as you drive insurance calculates premiums according to an individual’s driving profile, rewarding secure driving while tracking and increasing premiums on dangerous driving styles. Drivers who constantly speed, brake suddenly or drive in bad weather conditions (e.g. snow, rain) find themselves paying higher premiums than those who follow the rules of the road.  A “black box” device installed in the car tracks key parameters of the journey and transfers the data to the insurance company, who then regulates the premium rate.

Pay as You Drive Insurance: Definition

Pay as You Drive Insurance

Some insurance companies in Canada already offering simplified versions of pay as you drive solutions:

  • Industrial Alliance
  • Desjardins Insurance
  • The Co-operators
  • Interested to save on your auto insurance? Get a free quote today
  • Discover the lowest auto insurance rate across numerous insurance companies
  • Spend 15 min to start saving hundreds of dollars annually

Get a free Auto Insurance quote from 10+ Canadian insurers in Alberta


Our Publications related to Auto Insurance

What Analysis of 4,000+ Car Insurance Consumer Reviews Reveals about Canadian Insurers

What Analysis of 4,000+ Car Insurance Consumer Reviews Reveals about Canadian Insurers

Background: The last two years have been marked by unprecedented challenges due to the pandemic, both for consumers and companies. Despite the pandemic, life continued, and Canadians were driving cars, were buying or renting houses, going to a doctor and continued doing many other things related to insurance. As the largest Canadian insurance review platform, […]

Introducing a New Tool to Find Out What Issues Canadian Face with Their Insurers

Introducing a New Tool to Find Out What Issues Canadian Face with Their Insurers

The arrival of COVID-19 has pushed Canadians, more than ever before, online for finding and applying for insurance and banking products. It is not easy, though, to make the right choice without knowing if a particular insurer will be there when you need them the most. As the largest Canadian review platform with thousands of […]

Car Insurance in Alberta – Top Media Stories, Spring 2017

Car Insurance in Alberta – Top Media Stories, Spring 2017

Here are two summaries of top Alberta Car Insurance stories that were published in March and May 2017 in Canadian media outlets: CBC News Edmonton: Insurance company offers $5,500 for truck appraised at more than $40,000 (click to scroll to the story summary) Simcoe Reformer: Changes to benefit entitlement in 2016 adds to family’s struggle […]

Cheap Car Insurance – 7 Things to Know if You Are New to Canada

Cheap Car Insurance – 7 Things to Know if You Are New to Canada

Something that is quite straight forward for Canadians often turns out to be more complicated for those who are new to Canada. Searching for auto insurance and getting a cheap car insurance policy is one such issue, but we are here to help. Here are some questions you need to answer and steps you need […]

111 Insurance Myths – Everything You Must Know

111 Insurance Myths – Everything You Must Know

Hundreds of websites on the Internet perpetuate insurance myths. In this article, we have summarized all the insurance myths we are aware of and catalogued them by type, starting with home insurance, followed by auto insurance, life Insurance etc. If interested, you can unlock another 20 additional insurance myths at the end of our article. […]