Once you’ve landed in your new home in Canada , and everything is settled, you’ll most likely start thinking about long-term factors like home and car insurance or maybe even life insurance.
It is important to prepare for any unforeseen tragedy, such as an injury, damage to your car or home, for example. Having insurance to take care of these unforeseen circumstances can bring great relief to you and your family.
Another benefit of having insurance is knowing that one day you will be able to leave money for your children or loved ones, and by doing so, you will create financial security. Let’s explore the different types of Canadian insurance in detail.
Types of insurance you will need in Canada
1. Medical insurance
The Canadian government uses tax revenue to provide essential medical services somewhat free of charge. The official name is Medicare. Each province and territory is responsible for allocating its own health services, which means that the extent of medical coverage will vary from province to province.
Is Canadian Medicare free?
The answer is yes, the medical services offered as free are limited. That is why it is important to have private health insurance. Medicare will only cover hospital and medically necessary doctor services.
Provincial health insurance plans generally cover:
Emergency hospital treatment.
Most primary and secondary care, meaning any medically necessary service to help diagnose and treat any injury/illness.
Maternity services (including prenatal and postnatal care).
When you use Medicare services, you are not billed directly, since the bills go to the government and there are no overages to pay.
What does Canadian Medicare not cover?
Here’s what provincial health insurance plans typically don’t cover:
Evidence required for official documents.
Please note that this list will change depending on the province or territory in which you live. And some items on the list are covered by Medicare for children, people age 65 and older, and people with low incomes.
Should you have private health insurance in Canada?
Obtaining private health insurance in Canada depends solely on your medical needs. Even if you are fit and healthy and may wear glasses, you may want to consider private health insurance.
Private health insurance plans cover services such as:
Routine dental care.
Corrective vision care.
Physical and psychological therapies.
Emergency medical services when traveling abroad.
It would also be worth having private health insurance if:
You are old.
You travel a lot between Canadian provinces/territories.
Canadian employer group health insurance doesn’t offer enough.
You take prescription medications regularly.
Health care premiums for a family in Canada are around $157 per month, for an individual male it is an average of $47 per month and for an individual female, it is $80 per month.
2. Property insurance
Owning a property is probably one of the biggest financial investments you can make. Replacing or repairing a home in the event of theft or fire can be extremely expensive. Having homeowners insurance will give you a sense of peace knowing that if something happens, you are covered. You will also be required to have property insurance from financial institutions before receiving a mortgage.
Property insurance pays for damage or loss to your home, condo, or property. The insurance company may cover:
damage, theft or loss of your personal belongings.
Personal property stolen from your vehicle.
damage or injury to others who visit your home or property (for example, if someone falls in the driveway and is injured).
accidental damage you cause to the property of others (for example, if a fire that starts in your home causes damage to your neighbor’s home).
3. Vehicle insurance
If you want to have your own vehicle in Canada, it is mandatory that you have car insurance. In all Canadian provinces and territories, drivers must have at least liability benefits and accident or bodily injury coverage. Some provinces may require additional coverage to own a car. Auto insurance can be provided by a public or private insurer.
Compulsory vehicle insurance in Canada
Liability insurance: covers losses such as injury or death that your vehicle causes to other people or damage to their property. It does not cover the cost of repairs to your vehicle.
Accident Benefits – Covers the cost of your own medical expenses and lost earnings when you have an accident.
Optional vehicle insurance in Canada
Collision Insurance: Covers the cost of repairing or replacing your vehicle if it collides with another vehicle or object.
Comprehensive insurance: Covers the cost of repairing or replacing your vehicle due to other types of damage or loss, such as vandalism, fire or theft.
Vehicle insurance policies by province or territory
Province and territories that have purely private auto insurance systems:
Newfoundland and Labrador.
Prince Edward Island.
Province and territories that have hybrid car insurance systems, in which residents must purchase the compulsory basic insurance through the provincial government:
Quebec residents have two insurance policies:
Government insurer: insures against injuries to persons resulting from the operation of motor vehicles.
Private insurer: insures against property damage
4. Pet insurance
Pets become like a family, they are like a family. We buy the food we think is the best, we make sure their sleeping area is as comfortable as possible, and we make sure they get all the love and attention. So why not make sure they’re covered too? Pet insurance is the best for your pet and your pocketbook when an emergency occurs that results in an unexpected veterinary bill.
How does pet insurance work?
You’ll pay a monthly fee, and if your pet gets sick or injured, the insurance company will cover a certain amount of the expense. Here are some examples of costs that are commonly covered by pet insurance:
There are pet insurance companies that offer additional services in their packages such as check-ups, vaccinations or parasite prevention. In general, there are five factors that vary the cost of pet insurance:
your pets reproduce.
the age of your pet.
the deductible you choose.
the scope of coverage.
A deductible is what you agree to pay for your vet bills before your policy goes into effect. So if your deductible is $200, you’ll have to cover 100% of expenses until you reach that amount and only then will pet insurance kick in, to cover any additional amounts after that. In other countries, this deductible can also be called a franchise.
Affordable Pet Insurance Companies in Canada
Pets Plus Us Accident Plan.
5. Travel insurance
Travel insurance is very important, especially if you are traveling with all your belongings when you move to Canada. When you take out travel insurance, you are covering yourself against travel risks such as loss or theft of luggage, cancellation coverage if you cannot travel for an unexpected medical or personal reason. You will also be protected from unexpected medical costs.
Travel insurance could cover the following list of items, depending on the insurer:
Lost or delayed baggage.