For Drivers

Usage Based Insurance

Also known as “pay-how-you-drive” or “pay-as-you-drive”, Usage Based Insurance (UBI) is a type of auto insurance that evaluates your driving habits to determine if you’re eligible for discounted rates or rewards.

UBI Programs

The objective of UBI programs is to encourage and reward safe driving habits, as well as reduce the frequency and severity of accidents on Alberta roads.




In Alberta, some insurance companies offer drivers the opportunity to earn discounts or rewards based on their driving habits. Think of it as an incentive to be safer behind the wheel.

When a driver opts in, the insurance company starts collecting driving data through either an OBDII device or a mobile application. The driver’s base auto insurance rate may increase or decrease based on factors such as:

  • Time of day
  • Location driven
  • Distance driven
  • Speed
  • Acceleration speed
  • Instances of hard braking
  • Mobile phone use

As new insurance companies begin offering this type of program, some may introduce surcharges for unsafe driving behaviour.


Under this program, drivers pay a set rate for coverage based on the vehicle’s use. There may be an initial fee for coverage when the vehicle is not being driven and then a separate fee applied based on a kilometer threshold.

Privacy and Data Collection

While UBI programs do involve the collection of data about your driving behaviour and location, all insurance companies and their service providers are required to comply with Alberta’s privacy laws. Any concerns about the nature of data collected, how it’s stored, and how it’s used should be directed to your insurance company.

Driver Resources

Enrolling in a UBI program may not be right for you. Discover other ways to lower your auto insurance rate.


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