Are car insurance apps worth it?
Insurance apps can save Canadians money. But are they the right choice for you?
by Team Onlia
As an insurance broker, Onlia partners with Canada’s most trusted insurers to find Canadian drivers the best coverage for their needs. Car insurance apps are a tool drivers can use to prove they have safe driving habits in real time, but it’s important to understand the benefits and drawbacks of car insurance apps so you can make the best decision for your insurance needs.
Car insurance and Telematics/usage-based insurance programs
Most insurance apps are telematics or usage-based insurance (UBI) programs. They use an app on your phone or device connected to your vehicle’s diagnostics port to track factors like mileage, braking, acceleration, speed, time of day, and sometimes phone use while driving, to help determine premiums and sometimes award discounts.
Who saves money with usage-based car insurance apps?
Like with most insurance rate calculations, the more you can prove you practice low-risk driving habits while using a telematics app, the more you’re likely to save on coverage. Characteristics of those who save with usage-based car insurance apps include those who:
Drive infrequently (with no or shorter daily commutes and low annual mileage)
Have safe driving habits (smooth braking, limited speeding, not demonstrating signs of distracted driving)
Want personalized rates based on actual driving rather than broad, less-precise rating factors
Like receiving feedback on driving behaviour
Are willing to accept higher rates if a driver insured on the policy demonstrates higher risk driving
These programs may also be useful for newer drivers who have training and safe driving habits, but lack experience and want to build a record of safe driving with their insurer.
Who might pay more with usage-based car insurance apps?
Characteristics of those who pay more or feel uncomfortable with usage-based programs include those who:
Frequently drive late at night or long distances.
Don’t want to share driving and location data.
Privacy is one of the biggest concerns with telematics programs. Canadian insurance companies are legally required to explicitly gain each customer’s consent to participate in insurance programs that monitor driving.
Prefer predictable premiums. These programs can increase rates if your driving data indicates higher risk.
Drive in situations where hard braking or heavy traffic is common.
What data do car insurance telematics apps collect?
Telematics apps use GPS data to track location and speed. Your phone’s accelerometer can also be used to track acceleration and deceleration (i.e. breaking).
It’s important to review the privacy policy of any telematics app program you choose to participate in, but these are the common data points that are collected and attached to your user profile:
Location/Route
Speed
Distance
Phone usage while driving
Acceleration and breaking
You may also be able to review a record of your trips, used by your insurance provider to evaluate your driving frequency and performance.
How much can drivers save with car insurance telematics app discounts?
Like all insurance prices, savings from telematics programs are highly personalized and calculated in conjunction with other factors like:
Driving experience and history of you and others insured under your policy
The number and type of vehicle/s insured
Your city and postal code
Where you park your vehicle
Additional discount opportunities like bundling car and home insurance
Some usage-based insurance programs will offer a discount for joining.
Does Onlia have a car insurance app?
Because we’re a brokerage, Onlia doesn’t have a usage-based telematics app, but Onlia customers can use the Onlia Connect app to access insurance documents and submit claims information from the convenience of a phone. Customers can download Onlia Connect from Google Play and the App Store.
Get rewarded for safe driving with Aviva Journey
Onlia’s partner, Aviva, offers a usage-based app to help clients save on car insurance while gaining valuble insights into their driving habits. Aviva customers who sign up for Aviva Journey can receive a 10% discount on auto insurance.
Are car insurance apps worth downloading?
Car insurance apps can be worth it for drivers who maintain safe driving habits and drive fewer kilometres each year. Many usage-based insurance programs offer discounts based on factors such as mileage, braking, speed, and phone use while driving. However, savings vary by insurer and driver, and some people may prefer not to share their driving data. Always review the program details and privacy policies before enrolling in a usage-based insurance program.