Think you’re a safe driver? Insurance company offers Albertans chance to prove it

Do you consider yourself a safe driver? Motorists in Alberta now have the chance to prove it and it could lead to lower insurance premiums.

Allstate Canada announced Tuesday it is launching Drivewise, a usage-based insurance program, in Alberta.

The program uses technology installed within a driver’s vehicle to monitor their driving behaviour. Over the course of six months, a small wireless telematics device is installed in the driver’s vehicle to collect and analyze data on how the vehicle is driven.

“Being able to monitor your progress online and checking the website based on how you’re doing, maybe it will make you more aware of those hard brakes or those incidents where you’re speeding, where you maybe don’t realize that you’re doing it,” Allstate’s Amanda Sawatzky said.

“If you look at other jurisdictions, if you look at Europe – it’s really popular with drivers and it’s quite pervasive,” Heather Mack, director of government relations for the Insurance Bureau of Canada, said. “So I think this is just the first entrant and we’ll see more and more innovation coming from insurers.”

Drivers could be eligible for an up to 30 per cent insurance discount with the company if they demonstrate the following safe driving habits:

• They drive at safe speeds
• They do not drive often
• They usually drive during safer hours (5 a.m. – 11 p.m.)
• They avoid rapid acceleration and hard breaking

According to Allstate Canada, participants will not experience an increase in their premium if they aren’t able to demonstrate safe driving habits.

Allstate said no personal information is collected or shared through usage-based insurance programs, and not all programs collect location data.

“Instructions from the government are very specific that insurers may not use GPS tracking,” Mack said. “You’re not allowed to use any of that type of information for rating and it’s for discounting only. So even if you’re not the great driver that you think you are, you’re not going to be penalized at this point.”

With files from Shallima Maharaj.