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Some Ontario drivers with usage-based insurance can be penalized for bad driving

  TORONTO Usage-based insurance programs in Ontario, also known as pay-as-you-drive, increased 37 per cent in 2020 over the year before. In the past, people could only be rewarded for good driving with discounts on your premiums, but now one company has been granted permission to raise rates for drivers who take part in risky driving behaviour. The Financial Services Regulatory Authority of Ontario (FSRA) recently approved a change allowing Travelers Canada Insurance to charge bad drivers a 10 per cent surcharge if they take part in what it considers risky driving. Now that one company has been approved to charge bad drivers, more companies could also seek permission to do the same.

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