Alberta Drivers Beware: Tracking Apps May Raise Insurance

Introduction

Alberta Drivers Beware, a recent change could impact your car insurance! How Tracking Apps Affect Your Alberta Insurance? For a while, some insurance companies offered discounts through tracking apps in Alberta with usage-based insurance (UBI) programs. However, Alberta is now among several Canadian provinces where insurance companies can raise your premiums based on driving habits tracked by these apps.

This means using a tracking app for a potential discount could backfire and lead to higher premiums if your driving isn’t considered safe. Let’s explore how UBI works and what this means for Alberta drivers beware.

Alberta Drivers Beware: How Tracking Apps Affect Your Alberta Insurance

What is UBI?

UBI, or usage-based insurance, is a type of car insurance where your premium is based on how you drive in Alberta, not just traditional factors like age, location, and vehicle type. Previously, UBI programs only offered discounts for safe driving habits.

The Change for Alberta Drivers:

The recent update allows Alberta insurance companies to use data collected by tracking apps to not only offer discounts but also increase your premiums for risky behaviors such as:

• Speeding
• Harsh braking or acceleration
• Texting or using a handheld phone while driving
• Exceeding a set number of kilometers driven (pay-per-kilometer programs)

Before You Sign Up for UBI in Alberta: What to Consider

While UBI can still offer significant savings for safe drivers who drive less (up to 70%!), it’s crucial to understand the risks before enrolling in a program in Alberta. Here are some key considerations for Alberta drivers beware:

• Program Details: Make sure you fully understand the specific terms and conditions of the UBI program you’re considering in Alberta. This includes details on how your driving habits are monitored, what behaviors are considered risky, and how these behaviors will impact your premiums.
• Can You Afford a Surcharge? Consider your driving habits honestly. If you’re concerned about exceeding the speed limit, braking harshly, or driving more than anticipated, a UBI program might not be the best choice. A potential premium increase could negate any initial discount.
• Do the Math: Calculate your potential savings and compare them to the risk of a premium increase. This will help you decide if UBI makes financial sense for you in Alberta.

Alberta UBI FAQs

Q: Is UBI mandatory in Alberta?

A: No, UBI programs are optional for Alberta drivers. You can choose traditional car insurance without using a tracking app.

Q: What happens if I don’t want to use the tracking app in Alberta?

A: You won’t be eligible for UBI discounts, but you’ll avoid the risk of premium increases based on your driving habits.

Q: Can I switch back to traditional insurance after using UBI in Alberta?

A: Yes, you can typically switch back to traditional insurance at any time in Alberta.

Q: Are there other factors that can affect my UBI premium in Alberta?

A: Yes, some programs may consider additional factors like the time of day you drive.

Q: What if I’m a new driver in Alberta? Can I use UBI?

A: UBI programs may be available to new drivers in Alberta, but the specific terms and discounts may vary.

Conclusion

Alberta drivers beware, UBI programs can offer significant savings, but there’s a potential downside. By understanding how tracking apps work and their impact on your insurance premiums, you can make an informed decision about whether UBI is right for you.

Thinking about other insurance needs?

While we can’t help with UBI programs directly, we can help you find the perfect super visa insurance plan! Contact us today for a free quote and peace of mind.

Need a traditional car insurance quote in Alberta?

Look no further than Farnese Insurance, a sister company of Reliant Insurance in Fort Saskatchewan. They offer competitive rates and exceptional customer service. Get a free quote online or visit their office in Fort Saskatchewan for a personalized consultation.