If you don’t drive much in Alberta and despise the chance of expensive car insurance when renewal rolls around, a new device might help you save some serious cash.
The Alberta Motor Association (AMA) announced on Tuesday it is bringing in the province’s first pay-as-you-go auto insurance, and it’s touted as having saved some Albertans more than 40% off their premiums.
“AMA MyPace is a groundbreaking, distance-based insurance product where, alongside a fixed fee for things like theft and hail, policyholders only pay for the number of kilometres their vehicle is driven,” the association said in a news release.
The device is offered by the Alberta Motor Association Insurance Company (AMAIC), which operates exclusively in Alberta as a subsidiary of the Alberta Motor Association (AMA).
It’s said to offer “significant” savings for vehicles driven less than 9,000 km a year. According to a recent survey, AMA found that nearly 60% of participants drive their vehicles 9,000 km or less annually.
The driving distance is recorded by a device that easily plugs into a port in the vehicle, and customers are billed monthly based on the vehicle’s distance driven in the previous month, along with a fixed amount to cover hazards while parked.
They can view the vehicle’s recent trips and monthly kilometres in the AMA MyPace app.
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In a 2023 survey of AMA members, over 30% of participants stated they are driving less than they were pre-pandemic. Members cited work-from-home arrangements, retirement, and gas prices as key factors in their reduced driving.
Additionally, commute distances have been gradually declining. According to the Alberta Insurance Rate Board, 45% of Canadians reported they commuted fewer than 5 km/day in 2018. Today, that number has risen to 57%.
“Albertans are driving their vehicles less. AMA MyPace is designed to meet their changing insurance needs and save money,” says Rob Jesso, chief operating officer at AMAIC. “AMA MyPace is a whole new way to look at insurance. Albertans with low-mileage vehicles can now take more control of their monthly bill.”