Written by Amy Elvidge, Program Manager
Think about your vehicle sitting in your driveway or parking spot right now. For most traditional car owners, that stationary vehicle is costing a fixed, predictable, and frustratingly high amount of money every single month. For decades, our default has been to commute alone in our cars. We have accepted high insurance premiums, volatile fuel costs, and hours of stressful traffic as the mandatory price of getting to work.
But what if you were rewarded for not driving?
As we advocate for smarter, cleaner, and healthier ways to move at pointA, the landscape of transportation demand management is shifting. One of the most exciting catalysts for this change isn’t a new transit line or a sleeker electric bike—it’s an innovative shift in auto insurance. Programs like CAA MyPace, Intact’s MyDrive, Aviva Journey and Dejardins Ajusto are turning the traditional car ownership model on its head, offering an unprecedented financial incentive to embrace alternative transit.
The Financial Payoff: How Pay-As-You-Go Changes the Math
Traditionally, auto insurance assumes you will be driving a standard annual average (often between 15,000 and 20,000 kilometres). If you decide to take the carpool with a colleague, hop on the subway, or bike to work three days a week, your traditional insurance premium does not drop. You pay the exact same flat rate to insure a parked car as someone who drives two hours a day.
Enter CAA MyPace, Canada’s only true pay-as-you-go insurance payment program. Designed specifically for low-mileage drivers who clock under 12,000 kilometres a year, MyPace operates on a simple, transparent model: you pay a base rate to cover your car while it’s parked, plus fixed premiums for every 1,000-kilometre increment you actually drive (Source: mychoice.ca).
When you choose to switch your regular commute to public transit, carpooling, or active transportation, your vehicle’s mileage plummets. Under the MyPace model, a person who drives only 3,000 kilometres a year can save up to 50% or more compared to a traditional policy (Source: CAA North & East Ontario). Add in the savings from avoiding gas and parking, and there is a substantial financial benefit to mixing up your commute.
The Rise of Usage-Based Insurance (UBI)
CAA MyPace is part of an industry-wide evolution toward Usage-Based Insurance (UBI). Other major Canadian insurers have launched smartphone apps and plug-in devices that track and reward low-mileage lifestyles and safe driving habits:
- Intact MyDrive: With Intact’s myDrive app, your insurance premium is based on your driving habits (speed, focus, smoothness) as well as contextual factors (when, where and how much you drive). By adopting safe driving habits, you can influence your auto insurance premium by as much as a 25% savings. They also offer an automatic enrollment discount of 10% (Source: Intact Insurance).
- Aviva Journey: This is an app that gives you real-time visibility on what affects your car insurance premium and provides tips on safe driving. Save as much as 20% on your insurance premium based on your driving habits. And receive 10% off your insurance premium for the first year for enrolling (Source: Aviva).
- Desjardins Ajusto: These systems monitor things like acceleration, braking, and the time of day you travel through a smartphone app. Predictable and efficient driving, and avoiding high-risk rush hour traffic could lower your premium as much as 25%. Plus get an automatic 10% discount for your first 6 months when you sign up (Source: Dejardins).
| Program | Core Focus | Initial Sign-up Benefit | Maximum Potential Savings | Risk of Premium Increase? | Technology & Metrics Tracked |
| CAA MyPace | Pure Distance (Pay-per- km) | Pay a base rate + your first 1,000 km increment. | 50%+ (For ultra-low mileage lifestyles under 12,000 km/year). | No. If you drive more, you simply buy more kilometres. | Vehicle OBD-II plug-in device + app. Tracks total distance driven only. |
| Desjardins Ajusto | Driving Behaviour (Safe habits) | 10% discount for the first 6 months. | Up to 25% off your premium at renewal. | Yes. Up to a 20% surcharge for consistently risky driving. | Smartphone app. Tracks speed, hard braking, rapid acceleration, time of day, and smartphone distraction. |
| Aviva Journey | Driving Behaviour (Safe habits) | 10% discount for the first year. | Up to 25% off your premium at renewal. | Yes. Up to a 5% surcharge for riskier driving habits. | Smartphone app. Tracks speed limits, smoothness (acceleration/braking/cornering), and attentiveness (phone distraction). |
| Intact MyDrive | Driving Behaviour (Safe habits) | 10% discount upon enrollment. | Up to 30% – 40% off for remarkably safe driving. | Yes. Surcharges can apply for high-risk driving behaviour. | Smartphone app. Tracks safe speed, smoothness (braking/acceleration/turns), and focus (phone use). |
For a commuter looking to transition away from solo driving, these programs turn your smartphone into a savings tracker. Every day you choose a sustainable commute is a day you lock in lower insurance rates (Source: mychoice.ca). One warning, if you drive unsafely, your insurance can actually increase under these programs, as insurers see you as a risk to yourself and others on the road.
Embracing the Shift
Rethinking the daily commute doesn’t have to be all-or-nothing. Many Canadians are embracing a hybrid model—taking transit or working from home most of the week, and keeping a vehicle for weekend errands or family trips. Innovative insurance programs like CAA MyPace remove the financial penalty of owning a “part-time” car. They make sustainable transportation practical, profitable, and accessible.
See how much you could save by auditing your weekly kilometres, exploring alternative transit routes, and looking into a pay-as-you-go insurance policy that rewards you for doing the right thing for your wallet, your health, and the environment.
Note: pointA does not derive any monetary benefits from the aforementioned companies or have any working relationship with them.
