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Insurance in Canada; Demonstrating “Hope for the best, prepare for the worst” to the full extent! 

Insurances are almost the same all over the world, you pay the insurance companies in certain time intervals, and when you need financial help, they will help you financially, or somewhere along these lines. Insurance in Canada works the same way.

In this article we focus on the subject of the insurance in Canada, and learn about different kinds of insurances there, and we talk about the prices of them with a few examples. So buckle up, we are going to take you on a tour about insurance in Canada.

Different types of insurance in Canada 

In Canada, insurance is categorized into six main branches.

Life Insurance

Life insurance itself is divided into two different plans in Canada; Term Life Insurance, which covers the insured for a specific amount of time, may vary between a year or much more, and Permanent Life Insurance, which protects the insured for their lifetime and can provide a death benefit.

Business Insurance

All businesses come with risk; depending on the nature of business, the amount of risk might differ. This is why the business owners tend to find ways to minimize their damages should the worst happen. Business Insurance in Canada is a means for this goal, helping to identify and manage the risks.

Health Insurance

All residents and citizens are covered in health insurance programs in Canada through the healthcare system. But this doesn’t cover everything, so there are extended or private health insurances to cover where the government doesn’t. 

Auto Insurance

Cars, trucks, and motorcycles are all included in Auto insurance in Canada which is mandatory. The owner and user of the vehicle must use the insurance. The insurance covers both personal injuries and property damages, but it’s a bit different among provinces; the portion government or insurer must pay in case of claims is different along with other features, though in all cases, the concept of insuring is the same.

Home and Property Insurance

Rented or owned houses and properties can have insurance to make sure if a fire, theft, etc., happens, the insured is compensated. Property insurance covers other things apart from home, furniture, electronics, jewelry, etc.

Travel Insurance

Travel insurance is divided into two parts; first, Travelling Within Canada; the health insurance plans might differ in different parts of the country. Travel insurance ensures no unforeseen thing happens to internal travelers. Second, Travelling Outside Canada, like traveling within Canada, this plan helps to avoid facing large medical bills outside the country.

What are “Exclusions”?

While getting insurance, there are factors the insured must take note of. For example, there are “exclusions” that might nullify insurance plans, e.g., traveling to a high-risk country might be excluded in travel insurances, or some insurance plans might exclude some medical conditions from their coverage.

The price of the insurances in Canada

To get a better gist of the insurance system in Canada, here we will have a few examples of the price fee the insured must pay. Keep in mind these fees might change in different provinces, different insurers, and different plans. 

Price of auto insurance in Canada

As said above, the price might differ in different situations, car insurance in British Columbia costs more than 1800 CAD yearly, while it costs only 717 dollars in Quebec for a year (2020). 

The price of auto insurance in Canada
The price of auto insurance in Canada

One important thing to note is that the prices are not the same for immigrants without Permanent Residency status. They must pay higher fees due to their driving licenses being new in Canada. For new residents of Canada, the fees could even double up.

Price of life insurance in Canada

The same can be said for other insurances; life insurance can cost approximately 30 dollars to 500 dollars a month, depending on gender, age, health condition, the insurance company one uses, etc. For example, for a 28 years old healthy man living in Nova Scotia, with no record of smoking, a 30-year term with a coverage of 1 million CAD, the price will be somewhere between 850 CAD to 1100 CAD yearly.

Price of home insurance in Canada

When it comes to home insurance, the number of the variables are more. The area of the house, type of house (detached, semi-detached, condo, townhouse, etc.) are all variable and affect the price rates. Also if one owns it or it’s rental, the heating system, the year the house is built, construction type, etc. For example, for a detached house in Halifax, built in 2010, with a living area of 1000 square feet, electrical heating system, and having 1.5 stories, the cost of home insurance will be between 1500 CAD to 3000 CAD yearly depending on the plan. 

If you rent a house in Canada, you must consider having tenant insurance as the owner’s insurance does not cover the tenant’s furniture. The price varies around Canada, but approximately it will be between 20 to 30 CAD per month, or 240 to 360 CAD yearly.

Our last words on Insurance in Canada

We all know that it does not matter how much and how well we plan for our lives, unexpected things might happen. Insurances are way to manage these unexpected happenings, and to minimize the damage. But anyway, let’s all hope that the worst don’t come to happen.

Here we finish our article on insurance in Canada in hopes of it being useful for you. If you are interested in knowing more about Canada, check our other articles on Geography, Politics, Socio-cultural, and historical aspects of Canada.

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