Pay-as-you-drive car insurance coming to Canada?

yes i'll buy it if we can save money ,ortherwise you' ll stupid. NO

I can't see why insurance companies wouldn't rush into this. Why not give the drivers with the least experience/practice driving or the one's who only drive in citieis the lowest rates?
A male college student living in Toronto will certainly drive less than a salesman on the praries so of course he should be charged much less. I can't see anyway this could end badly, after all I feel much safer driving with my grandma than I do with my dad.

Steve, not sure where your coming from, the driver driving across the prairie is far less likely to get into an accident than the driver, in let's say calgary. Look at the stories, every time it snows in Calgary the city is put at a standstill by traffic accidents. I'd say they average about 300 every bad condition driving day. I'd say if you look at the stats, dollar value in damage on any given bad driving condition day, you'll find it much higherin cities, per kilometer driven, than outside cities. Just because rural drivers are travelling farther, doesn't mean their getting in as many accidents per kilometer. By the way those 300 accidents are the reported ones. There's likely 3 times that in unreported parking lot dings and bangs. Insurance compananies already take into account where you live in relation to your premiums, you'll find that rural insurers pay less premiums, why because they get into less accidents. The closer you live to metropolitan areas, the more you'll pay, I've lived in both I know.

the insure company call the economical group should not be in business as my daughter was hint in her car while sitting in stoped traffic on the 404 south by another carat the rear of her car at 80km now she has been injure & was fully cover by this theving insurance company at the time of the accident she had been on there policy for some time as well but now is telling her after 4 months after been absent from work that she will not be getting paid for her time off work from this accident that her work should cover time off with pay so why do we need them is my question to you out there & why do we need to pay insurance to these thieves in the first place just because there in bed with goverments in the frist place then they wonder why people want to sue them as have not be the cause up till now it should be a choice to have it as the stupid n. d. p. brought this n. f. l & has no reasoning what so ever so you see they really need to over haul this system at once Paul t. o

as long as the insuramce does not add the money lost from the divers that do not drive much and put it on the drivers that do drive alot of milage agail 39

PS... satire

When my car stays on the driveway most of the time, the insurance company is in no danger for any potential damage and expense. Therefore, a lower rate is a more logical/ethical option.
But now, how do you measure mileage use of a car ? Through the Odometer or relying on the declaration of the insured about low usage ? How low driving use can be determined ? How did the U.S. States that implemented pay-as-you-drive insurance do it ?

Yeah, sorry Steve, kinda figured that after i re-read it a couple of times, but I'd already posted.

For Geo: How do they measure mileage? In the UK they offer a 'free tracker' to help recover your car if it gets stolen & logically to track miles covered. Now what happens if they were to overlay a map with speed limits / road restrictions onto your tracker route? Imagine that you're driving down a road & your signal from the tracker gets reflected by a high sided vehicle resulting in an abnormally high speed reading, 'just' as you get into an accident (and to complicate matters your tires are spinning on ice showing a high speed reading on you onboard computer). An insurance adjuster would likely void the claim and push for you to be charged (documented systems showed the vehicle speedometer at 85 KPH in a 30KPH zone, clearly racing/speed testing. Then it would be up to you to hire a crash engineer team to reconstruct the accident, prove your point and undo the damage.
Better case scenario, you pay only $500/year because you do less than 8000 KMS. Their system rounds up each 7.5KMS trip, putting your mileage at 8010 KMS and voila a bill in the mail for the $1200 difference between the 8000 KMS coverage and the 8000+KMS coverage.
Another scene, you drive past a murder scene 3 minutes after a murder. Police have your GPS location & time from your insurance company but not that of the murderer driving a 1975 Ford Granada. Who's an easier suspect to find and charge?

hey Steve, your dead wrong about people in the rural areas, they drive farther distances but get into less accidents. You city folk are the problem with the high rates! You should be useing public transportation if you can. You said you feel safer with your grandma than your dad? Whats that about, this isnt a whine and cheese session. Keep your personal comments to yourself. As far as your speed indicator in your vehicle it measures all four tires not just the spiinning tires. Boy you are a paranoid indiviual police tracking murders on the gps from insurance companies,...... like i said you public transportation, you wont have to worry about all these problems, and you might even free up the emerg wait times by cutting stress for yourself. Lol

Insurance companies do nothing to save the consumer money. They are given a liscence to steal and rob you of anything they can. If they get this Pay as you go insurance in place, it will be set up that they are the only ones that benefit from it. The consumer will be the one on the hook and the insurance companies will make sure that you will have so much red ink to go through to collect on any damages. policies will be loaded with so much small ink print that lawyers will have trouble reading it. One way they could cut their costs is to pay claims that need to be paid and stop challanging claims that they know they will lose in court. They know which ones they are going to lose but challange or delay in the hope you give up so they do not have to pay. I know, I chanllanged a claim and it took them seven years to pay out but only when the courts ordered tehm to. The court told them they should have paid the claim six years prior. It cost them about ten times more then than it would have been six years prior. Oh yeah, the insurance industry are always crying poverty, close to bankruptcy, profits not high enough,etc,etc,etc , but, really think about it, have you heard of any insurance companies ever going bankrupt???????? I am sixty two years old and never heard one going bankrupt yet.

Roger, I couldnt agree more, they will win in the end, you might save a little, but the red tape will be diasterous. Insurance companies dont make money by handing it out to its consumer. Oh ya whats with this steve guy, you said it right to Larry.

@ Larry / eric, If you cannot see Satire when it is written, AND when it is followed up with a Satire label you are going to have a hard time figuring out 1/3 of what is on the internet. But at least I can clearly see how Sarah Palin & Glenn Beck get people to support them.

Sounds like an interesting idea as long as they do not off load costs on those who drive the average and higher distances. Sorry about your daughter Paul but your rant does not really relate to the article. I have a few concerns with a policy such as this however it does bear looking into. My concerns relate to the safe driver discounts and how they will be given or adjusted to take into account distance travelled. I think this idea needs a bit more work but it may be economical for some in the long run.

yes i would look into it but i drive for a living so i think it would not benifit me at all

I can understand that a few insurance companies may be able to squeeze through the many companies with this type of plan for now. How would the insurance companies deal with lost revenues for investment if all had the same plan ? Figure wages and operating costs that always rise as well .

Just in addition to my prior post what would make anyone think if insurance rates are as high as they are now what would stop them from doing the same thing over again in any new senerio ?????????????????????

Pay as you drive insurance is very popular in the Auto industryYour risk profile is built on a range of factors, such as your age, address, driving history, gender, and the motor vehicle that you drive.
which will be very beneficial.

Reforming the system to PAYD is something I would support because it shifts the cost from fixed to variable. One tends to have more control over their variable costs. For example, if I want to reduce my annual insurance cost (premiums) I can choose to drive my car less. Under the present “fixed” system I have less control over these costs.