Drivers may soon be able to prove to their insurers that they are safer and be rewarded with discounts.
Motorists in the Canadian province of Alberta could soon have the option to have telematics devices installed in their vehicles so that they can take advantage of discounts from usage based insurance programs when they prove that they have cautious driving habits.
The province is currently studying the technology which would reward safer drivers.
The usage based insurance devices would be installed on a voluntary basis to allow motorists to show that they are not a high risk to their insurers. These usage based insurance programs would use a device to record and transmit the driving data of the motorists to the insurers, who could then rate each individual driver’s safety level and award discounts when applicable.
The usage based insurance devices are already available to drivers in the province of Quebec.
This will give drivers who always claim that they are safer behind the wheel than other road users, the chance to prove that they are as good as they say. The programs are not meant to make unsafe drivers pay more, but the usage based insurance technology will identify the lower risk motorists so that they can be rewarded with lower premiums.
To take part in a usage based insurance program, a small telematics device must be installed into the vehicle. It records the driver’s speeds as well as other types of information such as the number of miles driver and the times of the day that the vehicle is used. Some programs also record the number of times that a driver brakes hard and makes sudden directional changes (such as lane changes). This helps to determine whether or not speed limits are being obeyed, when corners are taken too fast, and if the motorist is driving too closely to the vehicle ahead.
The province of Alberta is now studying to see whether or not it should give the green light to usage based insurance technology, as is the case in Quebec. The industry in the country believes that it is merely a matter of time before the entire country gives its approval to the technology.