CAA knows how things in life can spin out of control. But auto insurance shouldn’t be one of them. That’s why CAA Insurance Company is putting choice and control back into the hands of people with CAA MyPace™.
First unveiled in Ontario in May 2018, CAA MyPace is Canada’s only pay-as-you-go auto insurance payment program and is now available in Nova Scotia, New Brunswick, and soon in Prince Edward Island.
“We’re excited to offer this new program to the Maritime provinces,” says Gary Howard, Senior Vice President, CAA Atlantic. “Drivers now have access to an insurance payment option designed to meet the needs of their individual lifestyles.”
Designed by CAA Insurance Company to meet the expressed needs of its customers, CAA MyPace gives motorists the power to monitor the distance they drive and, based on that mileage, how much they pay for auto insurance.
Low-mileage customers who drive less than 9,000 kilometers per year benefit the most. These could include people who aren’t using their cars much during the COVID-19 pandemic; Monday-to-Friday public transit commuters who leave their vehicles at home; and retirees who may use their cars sparingly – for example, to visit family on weekends.
How it works is easy. Drivers enroll as they would with any other CAA Insurance Auto policy. A telematics device is plugged into their vehicle and connects to a mobile app or web portal allowing them to track how many kilometres they are driving. The device is compatible with most vehicles that were manufactured in 1997 or later, including some hybrid models. (Diesel vehicles manufactured in 2005 or earlier and electric vehicles are not compatible ). Drivers pay for auto insurance based on the mileage they drive.
Motorists start with a base rate and are charged in 1,000-kilometre increments, which are reloaded automatically. Customers receive notifications when they are close to the end of a 1,000km increment, making it easy for them to monitor their use. What’s more, data is collected only to determine the number of kilometres driven; it’s not used to increase insurance premium rates or monitor driver’s movements.
Existing CAA Insurance customers can switch policies mid-term without paying special fees. If they do need higher mileage coverage later, CAA MyPace customers can move back to a traditional policy without penalty. People insured by other companies may even find the savings at CAA MyPace worth the cost of changing provider before their next policy renewal.
According to Matthew Turack, President of CAA Insurance Company, CAA MyPace is catching on. “Since we launched in Ontario, we’re seeing close to 250 per cent year-over-year growth with people driving less due to the COVID-19 pandemic,” he says. “But even taking that into consideration, our data shows that people are driving less these days, generally. In fact, as employers implement more flexible work arrangements, people will continue to commute less. Customers not only want more flexibility; they are demanding it.”
Traditionally, companies create a product and figure out the math, the profit margin, the rating structure, and then worry about how to convince customers it’s right for them. Through studies and focus groups, CAA MyPace puts the customers wants and desires first. The financial models flow from there.
Says Turack: “Consumers today want choice and convenience when they access products and services. From coffee pickups and dinner reservations to selecting your TV channel package, more and more people are using mobile apps and technology to access what they want. We wanted to make sure that we were giving customers what they want, in the way they want it to stay modern and relevant.”
In fact, offering this kind of relevance has been a Canadian Automobile Association priority since its founding in 1903. Today, it’s a federation of eight not-for-profit clubs providing roadside assistance, member savings and comprehensive automotive and travel services. It also advocates on issues of concern to its Members, including road safety, the environment, mobility, infrastructure, and consumer protection.
Consumers in Atlantic Canada can get a quote for CAA MyPace through selected insurance brokers, CAA Stores, calling 1-877-552-5717 or visiting www.caamypace.com. •
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