With the launch of Allstate’s new usage-based insurance policy, brokers in Alberta have access to a new program that could offer clients the option of making savings on their premiums. Telematic technology is at the heart of the policy, with the machinery collecting data on how a vehicle is being driven, with the incentive for adoption being that safe drivers will be granted discounts on their insurance coverage.The information gathered by the diagnostic system of the vehicle over the course of half a year includes such factors as how often the policyholder uses the handbrake, what times of day the driver is out on the road, and just how far they drive daily. The data is then forwarded electronically to Allstate for analysis. After the six months is up, Allstate recovers the telematic technology that captured the data and consequently applies discounts.

Such policies have already gathered pace south of the border, where they represent the possibility for a significant consumer savings.