New Co-operators program with UBI technology aims to reward safe drivers in Ontario

The Co-operators announced Monday it is introducing a program in Ontario that employs usage-based insurance (UBI) technology to allow for more customized auto insurance and lower premiums for safe drivers.

The en-route Auto Program – which uses UBI technology developed by Intelligent Mechatronic Systems (IMS), a provider of connected car technology – will be available in Ontario as of April 2.

Clients will receive a 5% discount and could earn up to 25% off their auto insurance, depending on their driving behaviour, notes a statement Monday from The Co-operators Group Limited.

The 5% discount is applied automatically upon enrolment, and once the policy comes up for renewal – and once the vehicle has passed 125 days and 1,000 km – the discount will be recalculated based on the data collected, note reports The Co-operators, a Canadian-owned co-operative with more than $34 billion in assets under administration.

Data collected through the small wireless telematics device plugged into a vehicle port include instances of sudden braking and rapid acceleration, as well as the total distance driven and times of day.

“The information collected as part of the program will only be used to reward safe drivers – it will never result in premium increases,” the statement notes.

Participating clients will have access to coaching tips, through the myenroute Dashboard, information that can be used by drivers to improve their driving behaviour. This could, in turn, result in more savings.

Calling the program “as customized as auto insurance gets,” Kathy Bardswick, president and CEO of The Co-operators, says the program allows a person’s premium to reflect his or her personal driving behaviour, as well as provides the driver “with reports you can use to become a safer driver.”

Dr. Otman Basir, CEO of IMS, says that the UBI Intelligence solution “is both scalable and cost-effective; empowering insurance clients to quickly deploy programs for their policyholders.”