Frequently Asked Questions

Do you have questions about Allegory? Find your answers here or send us an email.

    • What is Allegory?

      Allegory is an insurance technology company that is transforming anddemocratizing the insurance industry by using artificial intelligence and behaviouralscience. Unlike traditional insurance companies, we base our insurance on drivinghabits and behaviours instead of demographics. Our core goals are to preventaccidents, improve driving behaviour, and offer cheaper insurance premiums togood drivers.

    • How is Allegory’s business model different from a traditional insurance company?

      Traditional companies use pricing models that are based on the past insurancepolicy and claims data. These models often focus on creating segmentations wherean insurance premium is calculated for segmentation. That’s why two peoplesharing the same age, gender, postal code, and driving history typically will beoffered the same premium. Companies then pool these premiums so they can fundthe claims payments of a subset of customers. In the end, the more premiums theycharge and the slower they pay, the more profit they make.

      At Allegory, we take a different approach. Using our mobile application, we providea premium based on your driving behaviour and short driving history. Whilecreating your short driving history we will alert you of any risky driving behaviouryou may exhibit and provide insights on how to improve your driving. Your drivingbehaviour plays a major role in determining the your personalized premium.

      We continuously engage with you to provide suggestions for how you can furtherdecrease your premium. In the end, our goal is to minimize the number ofaccidents. This will result in fewer claims payments and ultimately lower premiumsfor our customers. We strive to save lives while saving our customers money.

    • What’s the difference between your model and current telematics-based products?

      There are two significant differences. The first one is that our entire model is basedon your actual driving behaviour, which allows us to more accurately assess the riskyou pose as a driver. The second difference is that unlike other insurancecompanies, we don’t use this information to draw you in with minimal, meaninglessdiscounts that are difficult to obtain and maintain.

    • How is Allegory structured?

      Allegory is the brand name for our insurance and technology products.

      Allegory Technology Inc. is a technology company that provides accurate AI-driveninsurance pricing and the technology infrastructure of the insurance company.

      Allegory is also seeking to become an insurance provider in Canada and around theworld. We are currently talking with Canada’s leading insurance companies with theobjective of obtaining underwriting authority on their behalf. This model is called theGeneral Managing Agent (MGA) model, which allows innovators and technologystart-ups to enter the market faster.

    • Is Allegory reinsured?

      Allegory is working to become a general managing agent that has been givenunderwriting authority by an established, regulated, and reinsured insurancecompany. As a perquisite, we will have all the required reinsurance agreements inplace.

    • Where is your head office?

      Our head office is located at 100 College Street Toronto, Ontario M5G 1L5.

    • How can I reach you?

      You can get in touch with our team through our mobile app or Alternatively, you can always send an email

    • How do you calculate my premium?

      We employ two distinct approaches to calculating your insurance premium.

      The first is the Allegory way. We try to understand your driving behaviour over alimited period and then transform this information into an actual insurance policyand premium. Once you purchase your insurance, we continue to use the samemetrics to calculate your renewal premium as well.

      The second is the traditional way. We adopt this approach only when you need topurchase your insurance coverage immediately, i.e. before completing our trialperiod. We use methods similar to other insurance companies to provide you with apremium for a limited time. However, your premium will be calculated based onyour driving behaviour as soon as that limited time ends.

    • What rating factors do you use to calculate my premium?

      We want to answer this question honestly, since transparency is one of our corevalues at Allegory.

      We use a sophisticated artificial intelligence model that calculates the likelihood ofbeing involved in a collision for each customer based on their driving habits. Toensure that these algorithms give accurate results, we need to gather data on yourdriving behaviour over a short trial period so that we can calculate the rightpremium for you.

      Our model takes thousands of data points into consideration, which can be groupedinto a few different categories:

      • How you drive: Attentive driving, acceleration, braking, cornering, andspeeding are the most important factors. Other considerations include longperiods of driving without stopping, as well as the days you drive on and thetimes of day you drive at.
      • What you drive: Since many modern vehicles are equipped with manystandard and optional safety features, we incorporate them into our pricingmodel as well. The presence of adaptive headlights, crash-imminent braking(CIB), blind-spot detection (BSD), parking sensors, and forward-collisionwarning (FCW) can all influence pricing.
      • How much you drive: The amount of driving you do is another critical factorthat will influence pricing as risk increases when you drive more.
      • Where you drive: We use a state-of-the-art geospatial model to predictlocation-based accident risks. The temperature, wind speed, visibility, and average traffic volume of where you drive are all taken into consideration.
      • Other: Regulators mandate certain rating factors. For example, all theinsurance companies must provide a winter tire discount, a graduatedlicensing discount, and a retiree discount in Ontario. To comply withregulatory requirements, we need your driver’s license number, your pastand current license classes, and the start date of those licenses. Your date ofbirth is also required to verify your ID and check your eligibility for a retireediscount.
    • My driving is mostly local. Is this worth trying?

      Absolutely! Since our model uses distance as one of the premium determiningfactors, low mileage drivers can save extra on their insurance premiums.

    • Are you going to increase my rates?

      We believe that insurance is not about punishment and prejudgement butprevention and protection. Therefore, if you keep the same level of good driving,we’re not going to increase your rates. Moreover, we’ll always guide you on how tosave more on your insurance premium with our smart coaching feature.

    • Why aren’t you just using my driving record, history, or demographics like every other company?

      We believe in fairness and transparency. We don't judge people based on their age,gender, previous accidents, or where they live. We think that the fairest way ofcalculating insurance premiums is to understand the actual driving behaviour andour customers’ perceived risks. This approach is where we differ from othercompanies.

    • Will you increase my rates due to location?

      No, we will not. We will provide you with all the necessary devices to keep yourvehicle safe in risky areas, such as high crime or theft areas.

    • How much of a discount can I earn?

      Our model is not discount-based. We calculate a personalized insurance premiumbased on driving behaviour, mileage, vehicle specifications, and you drivinglocation. However, as a benchmark, good drivers can save more than 50% on theirinsurance premium compared to a traditional insurance policy.

    • Are you using my credit score?

      We are not using your credit score to determine your insurance premium as it hasno direct correlation to your driving skills.

    • Will you increase my prices?

      Upon completion of the trial period, your premium will be determined based on yourcurrent driving behaviour, mileage, vehicle specifications, and your driving location.Therefore, your premium will not change, provided that these factors remainunchanged. For example, you may see a slight increase in your renewal premium ifyou start driving more.

    • I’m a safe driver and haven’t been in accident for 25 years. My record should qualify me for a discount regardless of whether I rarely exceed speed limit.

      If you are a safe driver you are going to pay less for your insurance with Allegory.Occasionally exceeding the speed limit will not impact your overall score or yourinsurance premium.

    • How frequently are you going to change my rates?

      You will receive your rate as soon as you complete the trial period. After this, we'llrecalculate your premium once every three months to reflect the improvements inyour driving accurately and fairly.

    • My rate is already low. Why should I be insured with Allegory?

      Most of the time, our customers see even lower rates than what they pay with theircurrent provider. So, if you are a good driver, we would encourage you to tryAllegory for an opportunity to save more. There is no commitment in the event thatour services are not for you.

    • My car has a forward collision warning system. How do you incorporate this into your pricing?

      Since these safety features have shown promise in accident prevention, we considertheir presence when determining your insurance premium.

    • How do you define safe?

      Unfortunately, there is no global standard for what safe constitutes in behaviour-based insurance programs. However, certain behaviours have been researched andproven dangerous. For example:

      • Using a mobile phone while driving
      • Increasing or decreasing speed more than 10 kilometers per hour in onesecond
      • Exceeding speed limits by more than 10%
      • Taking a turn while your lateral acceleration is more than 10 kilometers perhour in one second
      • Fatigue and impaired driving
      • Long night driving without resting enough
      • Speeding when there are adverse weather conditions
      • Driving faster or slower than the average traffic speed

      Therefore, we follow these globally accepted safe driving behaviours whilecalculating your driving score and premium.

    • Am I going to be penalized if I accelerate to avoid a situation?

      Since our scoring model considers the overall consistency of your driving behaviour,you will not be penalized for rare acceleration and braking events.

    • Are you using an OBD2 device to track my driving?

      Currently, we only use your mobile phone sensors to detect your trips and calculateyour driving score.

    • Are you going to increase my premium if I have an accident?

      First of all, we hope that you are never involved in a car accident. However, if youare in an accident, we will not increase your rates. Our goal is to protect, not punishyou.

    • Will you increase my premium if I speed on the highway?

      Our scoring model considers the overall consistency of your driving behaviour, soyou will not be penalized for rare speeding events. However, regularly exceedingspeed limits will negatively impact your driving score and premium.

    • How does it work?

      Allegory utilizes an app-only approach for your insurance needs. Once youdownload the app, all you need to do is start driving and complete the trial period toreceive a quote. Although the duration of this period depends on your drivinghabits, it will not take more than three weeks. Once you accept the quote, yourinsurance will start immediately and you will receive a new quote once every threemonths.

    • What happens if I don’t accept the quote?

      All drivers must complete the trial period to be able to get a quote. If your quotelooks good, you can purchase your insurance immediately through our app.Otherwise, you can continue using it without any commitment and improve yourdriving score until you feel a switch to Allegory would be right for you.

    • What kind of coverage do you offer?

      We offer all the typical mandatory and optional coverages, so you don’t need toworry about insufficient coverage.

    • Do you only offer car insurance?

      Currently, we’re working hard to revolutionize auto insurance. Stay tuned for health,travel, and home insurance.

    • Is my information kept confidential?

      At Allegory, data privacy and confidentiality come first (see our Privacy Notice). Wewill never share or sell your information for marketing purposes. However, there iscertain information we must share with our partners and regulators. For example,we need your driving records for regulatory and federal statistical purposes. Inaddition, we may share your contact information with our partner companies tohandle your claims.

    • What personal information do you store?

      First and foremost, we do not store any information that’s not mandated byregulators or not used in our premium calculation. Since we value transparency,below is a list of what we do and do not store.

      What we store:

      • Your login credentials: We never use any third-party sign-up services. Dueto recent data breaches of such providers, we’ve decided to use ourproprietary sign-up process. Your credentials are kept in an isolated andencrypted database that has no direct internet access.
      • Customer Information: Most of the data, such as your name, date of birth,and address are stored in our secure data servers for regulatory purposes andto verify your identity in case of account, policy, or claims inquiries.
      • Location and Sensor data: We store your driving locations and sensor datain our secured and encrypted data storage. However, our models will soon berun on your device with your data without being shared with us. Thus, yourprivacy will remain intact.

      What we do not store:

      • Sensitive Information: Sensitive data includes but is not limited to- yourmedical records, SIN, and income information, which we are not accessingnor storing by any means.
    • Collecting speed data is fine but why are you collecting my location data?

      The reasons we are collecting and storing your location data are:

      • To be able to display it on a map so you can view your previous trips
      • To be able to retrieve the road type (e.g. highway, urban), posted speed limits, weather conditions, traffic conditions, and curves to calculate yourdriving behaviour accurately
      • To be able to dispatch emergency services in case of an accident or a carbreak down

      We collect location data to provide a better insurance premium and assist ourcustomers more efficiently when they need their insurance. We never sell your datato any third-party companies. All your data is kept anonymously in our securedservers which are only accessible by eligible company personnel.

    • What security measures and standards does your company follow?

      Our IT infrastructure follows the list of assurance programs below:

      • SOC 1/ISAE 3402, SOC 2, SOC 3
      • FISMA, DIACAP, and FedRAMP
      • PCI DSS Level 1
      • ISO 9001, ISO 27001, ISO 27017, ISO 27018
    • For how long do you keep my personal data?

      We keep your personal data as long as it is permitted by provincial and federal laws,or until you request a deletion of your account from our servers, provided that youare not insured with Allegory.

    • Are you “big brother”?

      No, we are not. We are just a modern insurance company that strives to eliminaterisks from your life and provide you with the best premium possible.

    • What do you do “more” with my data?

      We follow all the laws around data protection and privacy. We also have strictinternal rules in terms of data usage. We are not selling your data to any third-partycompanies for marketing or other purposes. If you have any concerns about dataprivacy, please check our Privacy Notice or contact us

    • Could there be legal ramifications if your system proves that the client has broken the law in some way?

      We do not under any circumstances, share your personal information with otherindividuals or organizations without your permission- including public organizationsand corporations, unless applicable by law. The only exception is if a court ordercompels us to. We will share your information with government agencies if theyneed or request it.

    • What if my mobile device is stolen or lost?

      If your mobile phone gets stolen, we urge you to let us know as soon as possible.We will then suspend your account temporarily to prevent any unauthorized accessto your data. Once you recover your phone or purchase a new one, you candownload our app and log in to your account.

    • Is my data encrypted?

      All your data is encrypted in our servers. Moreover, all the communication betweenyour mobile device and our servers is also encrypted using TLS 1.1. system.

    • Can I ask to have my personal data deleted?

      GDPR (General Data Protection Regulation under European Union Laws) is one of themost comprehensive data privacy acts around the world, and “Right to beforgotten” is one of the essential rules of it. This rule gives consumers the right torequest their data removed from a company’s records. Since our app is being usedglobally, we’re following GDPR as well as Canadian provincial and federal lawsaround data privacy.

      If you wish to have your data deleted, please send an email You must send this email from your registeredemail address and include your verified phone number too. Once we receive yourrequest, we will contact you to confirm your request for deletion. Please be awarethat this process is irrecoverable, and you will lose all your past trips and progress.

    • Can I stop using your app for a while?

      Yes, you can. If you delete the Allegory app from your mobile phone, we’ll no longermeasure your driving behaviour. Once you’re ready to record your trips again,download our app and log in to your account to retrieve all your previous trips andprogress. Please be aware that stopping use of the app will impact your trial periodprogress and may affect your quote.

    • Why should I “always allow” location and motion services?

      Our app works in the background to detect your trips automatically. To be able to dothis, we check whether your location and motion have changed by a certainamount. We do not collect your exact location during this process. Once we identifya difference, we start your trip immediately and send you a notification to let youknow. We need to access your location and motion data at all times to initiate thisprocess seamlessly. Otherwise, you will not be able to effectively use our app andthe data collected will not properly reflect your driving habits.

    • How can I get my insurance?

      As of today, we are not able to provide insurance since we are still waiting toreceive our license. However, you can download our app, see how well you’redriving, and improve your driving skills. After you complete the trial period, we willalso provide you with an estimated insurance premium based on your drivingbehaviour. This will allow you to make a comparison with your current insuranceprovider. Once we are ready to sell insurance, we will notify you immediatelythrough our app and email.

    • How can I report a claim?

      As of today, we are not able to provide insurance. Therefore, using the Allegory appdoesn’t mean that you have insurance with Allegory. In case of an accident, pleasecontact your current insurance company immediately. If you need immediateassistance, you may use the emergency button in our app to call 911 and notifyyour emergency contact with your current location.

    • Tell me about insurance fraud. How do you prevent it?

      Unfortunately, insurance fraud is a major issue in Canada. According to researchdone by Aviva Insurance in 2018, auto insurance fraud costs Canadians over $2billion every year. Besides, almost 82% of consumers feel their premiums are toohigh due to insurance fraud. Considering that the average premium is $1,400, andthere are 7.7 million insured vehicles in Ontario, nearly 10% of your premium goesto fraudsters.

      Below are the most common reasons for insurance fraud. Let’s take a look at whatwe’re doing right to prevent fraud.

      • Fraudulent sale and issuing of auto policies: This type of fraud isimpossible with Allegory since every customer and driver needs to downloadour mobile application.
      • Non-payment: We charge the first installment of insurance premiumupfront.
      • Rate Evasion: This type of fraud occurs amongst individuals in high-riskdriving areas who deliberately register their licenses or vehicles to lower riskdriving regions. Since we are not using address location as a premium factor,we don’t expect to see any rate evasion issues.
      • Thefts: We will equip our customers with state-of-the-art devices, so wecould protect them against theft.
      • Exaggeration: By using mobile and in-vehicle sensors, we can identify thetime, location, and severity of accidents. So instead of paying inflated claims,we can immediately pay to our honest customers who need it.
      • Tow trucks and appraisers: We work with the industry’s well-known andtrusted tow truck companies and appraisers, so all the claims payments willbe monitored and audited strictly.
      • Repair Shops: Our third-party providers for repair shops must sustain acertain level of compliance and audit standards.

      In the end, by using technology efficiently and intelligently, we can eliminate theissue of customers losing 10% of their valued premium to fraudsters.