This week, Desjardins Insurance announced Ajusto, the first widely available auto insurance program in Ontario that provides savings based on driver usage. With Ajusto, motorists are able to save up to 25 per cent or more on their vehicle insurance, as a result of their driving habits.
“Desjardins Insurance is introducing an innovative and personalized technology that helps transform the traditional model of car insurance,” remarked Sylvie Paquette, president and COO of Desjardins General Insurance Group.
“By tailoring premiums to individual driving habits in addition to traditional predictive factors such as age, gender, type of vehicle and home location, drivers can now take control of their savings,” Paquette said. “Ajusto is one step that makes car insurance more affordable for good drivers in Ontario.”
Ajusto is a free and voluntary program available to all Ontario car owners who drive a vehicle made in 1998 or later with limited exceptions. The savings begin when participating customers join the program and are applicable upon renewal of their insurance policy. The program measures three factors to determine cost savings:
- Distance travelled annually (up to 10 per cent off)
- Extent and frequency of hard braking and acceleration (up to 10 per cent off)
- Time of day the vehicle is driven (up to five per cent off)
Desjardins says that premiums will not increase as a result of participating in the program nor will it result in any other adverse effects. Customers can opt out of the program at any time and without penalty.
“Savings with Ajusto are in addition to other savings offered by Desjardins Insurance. Our studies show that our employees who participated in a pilot program were on track to achieve an average additional savings of 12 per cent,” said Ken Lindhardsen, vice-president of Claims Operations and Legal Counsel. “When combined with other Desjardins Insurance savings, Ajusto represents the ultimate form of personalized insurance.”
Ajusto customers receive a small wireless telematics device that is quick and easy to install in the vehicle’s diagnostic port, which is usually located under the steering wheel. Customers can then track their driving habits and savings online. The information on the online dashboard, which is only accessible by the customer, includes a detailed graphic of the customer’s driving habits that is updated daily. The discount is calculated monthly.
The data collected by Ajusto is subject to strict privacy policies and is not used for any other commercial purposes. The data featured on the dashboard is analyzed by Desjardins Insurance on a confidential basis solely to determine savings.
Desjardins Insurance also offers a similar program, Intelauto, to clients of The Personal Insurance Company, a Canadian leader in group insurance. Ajusto and Intelauto are currently the only usage-based insurance programs to be approved by the Financial Services Commission of Ontario (FSCO) after passing a stringent review process. Both programs have also been launched in Quebec, and will be offered in other provinces, following regulatory approval.
While usage-based insurance programs are common in the U.S. as well as the UK and Europe, the Ajusto and Intelauto programs are a made-in-Canada solution. The wireless telematics device was developed by iMetrik, a Montreal-based technology company, and both programs run on Canada’s largest high-speed mobile network with Bell.
