TORONTO -- Many drivers in Ontario have been frustrated with the rising cost of car insurance, especially during the pandemic when many people are driving less.

CAA Insurance has a relatively new policy called MyPace, which is like pay-as-you-drive insurance, and said the number of people buying the policy has gone up 300 per cent in the past ten months.

CAA President Matthew Turack said, “We are the first and only pay-as-you-go auto insurance program in Ontario. We are very proud to be leading the market this way."

Turack said that if you are a driver who doesn’t drive a lot you could save up to 50 per cent on your car insurance premiums.

To take part in the MyPace program, you need to install a telematics device that tracks how much you drive and then the cost of the service is based on your annual mileage.

For example, if two separate drivers with similar driving records owned the same type of vehicle and one drove 5,000 kilometres a year and the other drove 30,000, both would generally pay the same insurance premium.

However, with pay-as-you-drive insurance, the person driving less could see their premium cut in half.

“It's a pay-as-you-go auto insurance program. We charge you in 1,000 kilometre increments so you only pay for what you use and you will never pay more than your standard policy."

Some insurance companies also use telematics devices to monitor driving habits and say you could get a reduction on your premiums if you're a good driver.

Anne Marie Thomas with said, “It monitors things such as the times of day you drive, the speeds you drive, do you accelerate quickly or do you brake too hard."

Thomas said that due to a recent regulatory change, some insurance companies can actually increase their rates if they feel you're a bad driver.

“If you know you have a tendency to go over the speed limit or take the corner on two wheels, you might want to consider not installing a telematics device," said Thomas.

Meanwhile, CAA insists it is only interested in how much you drive and not your driving habits.

“MyPace is about billing you in 1,000 increments for your car. We are not looking at your driving behavior, we are not looking at how your drive,” said Turack.

The MyPace program is best for anyone who drives fewer than 9,000 kilometres a year, so if you’re retired, commute or find you're driving a lot less, pay-as-you-go insurance could be an option for you.