The Canadian Automobile Association (CAA) is set to introduce pay-as-you-drive insurance in Ontario in July. The plan permits drivers to buy insurance in 1,000 kilometre blocks and seems to herald a money-saving advantage for those who don’t drive too much. The new program is called CAA MyPace. Drivers will pay a base yearly rate, and then each time you use up your 1,000 km block, the system alerts you and lets you pay for another. Klickage is automatically recorded by a device attached to the car. CAA Insurance pitches the new plan at drivers who cover less than 9,000 km per year, like seniors and drivers who mostly use public transit. “Over the last number of years, auto insurance has been front of mind for a lot of Ontarians,” said Elliott Silverstein, manager, government relations, CAA South Central Ontario. “Today’s announcement provides an additional layer of choice for those who are low-mileage drivers and marks an important step in the modernization of insurance in Ontario.”
