CAA Unveils pay-as-you-go Auto Insurance Program



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Thread: CAA Unveils pay-as-you-go Auto Insurance Program

  1. #1
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    CAA Unveils pay-as-you-go Auto Insurance Program

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    I wonder if this would apply to bikes. It MIGHT be cheaper for some people. I'd be curious to check..

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    Re: CAA Unveils pay-as-you-go Auto Insurance Program

    If I am correct CAA is basically an agent and other insurance companies underwrite the policies. It works because CAA has the volume. It would be interesting to know who really picks up the tab. It could be spread over several companies.

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    Re: CAA Unveils pay-as-you-go Auto Insurance Program

    As long as the device isn't tracking speed and acceleration against you, then it might be a decent deal. I'd be curious for my truck. I drive just below 9000km a year in it and am currently getting wrecked by insurance on it for being young and a male.

    I doubt it would be for motorcycles. Probably just uses an OBDII device.
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    Re: CAA Unveils pay-as-you-go Auto Insurance Program

    OBDII from press conference. Base rate + x dollars per 1000 km. Less than 9000 km/yr (at 9000 you are paying full normal policy rate). Rate only based on km, time/gps/driving style not used in pricing.

    They specifically avoided answering any questions regarding the actual rates or possible percentage savings. It would have been nice if they gave an idea (eg. from a standard policy expect 20% base rate + 10%/1000). My suspicion is it will be more like 50% base + 7%/1000 as it's not worth their time to write up a policy for less than 50%.

    It will be interesting to see how this holds up. I suspect they will find that if people are using this for their primary vehicle, those drivers will have a much higher frequency of claims/km and when the rates are adjusted to account for this, the product will lose any advantage over a conventional policy.

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    Re: CAA Unveils pay-as-you-go Auto Insurance Program

    What percentage of the driving population drives less than 9,000 Km (5600 Miles) a year? Motorcycles might be a good fit due to the seasonal nature of the beasts but cars????

    Maybe the downtowners in their condos?

    Using GreyGhost's assumptions and my pleasure use car policy of about $1200.00, start with $600 up front plus 17,000 km / year (9,000 allowed no charge). 7% X 1200 X 8 = $504.00. Add that to the base and $600 + $672 = $1272. Doesn't work for me and I think GG's assumptions are reasonable.

    Using the 20% /10% becomes $240.00 base + ($120.00 X 8 units) = $1200.00. Now we're a match but any change in pattern could put me underwater. I like flexibility.

  6. #6

    Re: CAA Unveils pay-as-you-go Auto Insurance Program

    In the Q and A it seemed as though the mileage charge stopped accruing after 9000km.
    The odd times I felt I'd approached the truth, it rested on the premise that people are essentially good and smart.

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    Re: CAA Unveils pay-as-you-go Auto Insurance Program

    Quote Originally Posted by nobbie48 View Post
    What percentage of the driving population drives less than 9,000 Km (5600 Miles) a year? Motorcycles might be a good fit due to the seasonal nature of the beasts but cars????

    Maybe the downtowners in their condos?

    Using GreyGhost's assumptions and my pleasure use car policy of about $1200.00, start with $600 up front plus 17,000 km / year (9,000 allowed no charge). 7% X 1200 X 8 = $504.00. Add that to the base and $600 + $672 = $1272. Doesn't work for me and I think GG's assumptions are reasonable.

    Using the 20% /10% becomes $240.00 base + ($120.00 X 8 units) = $1200.00. Now we're a match but any change in pattern could put me underwater. I like flexibility.
    Quote Originally Posted by fastar1 View Post
    In the Q and A it seemed as though the mileage charge stopped accruing after 9000km.
    I agree with fastars interpretation. At 9000 km the policy is at max price which theoretically matches the rate on a traditional policy.

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    Re: CAA Unveils pay-as-you-go Auto Insurance Program

    Quote Originally Posted by fastar1 View Post
    In the Q and A it seemed as though the mileage charge stopped accruing after 9000km.
    I didn't watch the whole thing. Too much gas bagging rhetoric. If there is a cap at 9,000:

    50% / 7% for me would be $1356.00 50% X 1200 + 9 units at $84 each

    20% / 10% becomes $1320.00 20% X 1200 + 9 units at $120 each

    Still not working for me AND I have to watch my mileage.

    I knew a lady that had a small car and hardly drove it. She lived, worked and shopped downtown. She had a car because it gave her the freedom to visit an ailing relative in the burbs.

    For me the cap would have to be at 7,000 or so to show any value. If the savings are minimal why not pay the few extra bucks and get the eat all you want buffet?

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    Re: CAA Unveils pay-as-you-go Auto Insurance Program

    People that drive more than 25,000 km a year should not be paying less than me. Their at higher odds of being in an accident because they are on the road more.

  10. #10
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    Re: CAA Unveils pay-as-you-go Auto Insurance Program

    Could possible work for me too....for the cage.

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    Re: CAA Unveils pay-as-you-go Auto Insurance Program

    9000km/365 days=24.6575342466 km per day/2=12.3287671233 km 1 way of a round trip, can be extended if no driving on the weekends(9000/260=34.6153846154 km per weekday/2=17.3076923077 km 1 way of a round trip, not accounting for holidays off work).
    Could work for some people I guess.
    Last edited by Lord Letto; 05-24-2018 at 07:59 PM.

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    Re: CAA Unveils pay-as-you-go Auto Insurance Program

    Well they SAY it will only be used to track mileage, but if it is an OBDII device using the port, they would have access to all the other info. IE speed, acceleration etc. They may not initially use the data, BUT insurance companies are in business to make a profit, NOT to benefit their clients, so I could foresee a period in time when like the other "cost saving devices" actually ends up negating any possible savings. The news reports, also said they would be able to track time of day use. So I could also envision them saying yes you qualify via the mileage BUT we are sorry your excluded as you ONLY drive during rush hours...lol

  13. #13

    Re: CAA Unveils pay-as-you-go Auto Insurance Program

    Quote Originally Posted by nobbie48 View Post
    What percentage of the driving population drives less than 9,000 Km (5600 Miles) a year? Motorcycles might be a good fit due to the seasonal nature of the beasts but cars????
    Last 2 or so years I've been under 5,000km on the car actually...switched jobs and now that I work downtown I take transit each day for work, and with the bike out in the warmer months it gets used most weekends except for if I need to give someone a lift or pick stuff up (and need the trunk space).

    Still not sold on this as they could in theory use other information unless the contract was such that they only were privy to mileage, and required signed consent for more. Figure though savings will be minimal (probably less than 50%), plus the typical "insurer may terminate or change contract at any time" stuff we see from insurance companies and wireless providers.
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