Industrial Alliance launches pay-as-you-drive program for young drivers

Quebec-based Industrial Alliance is introducing a new way of insuring younger drivers that tracks behaviour behind the wheel.

Based on the pay-as-you-drive model, “Mobiliz” uses telematics technology to monitor distance travelled as well as three driving behaviours: speeding, forced acceleration and hard braking. Industrial Alliance says it will provide free installation of a GPS-type module to Quebec drivers aged 16-24 who join the initiative.

The web-based auto insurance program will also allow drivers to access information on their driving habits, the effect on premium and safety tips.

“Mobiliz will enable youths who drive responsibly, but frustrated with their high premiums simply because they are young, to benefit from the lowest rates in the industry,” says Michel Laurin, president and CEO of operations at Industrial Alliance Operations, Auto and Home Insurance Inc. “As for youths who currently have extreme driving habits, Mobiliz will offer them the necessary financial incentives so that they can adopt more responsible driving habits.”

Industrial Alliance is primarily a life and health insurance company, but its president and CEO Yvon Charest called the auto insurance program “first and foremost a cause. By this initiative, we wish to actively take part in solving a societal issue and save lives by way of what we do and know best — that is, insurance.”