Insurance for Newcomers to Canada

Money is a great source of stress for many people. As such, getting your finances in order can be a great way to ensure a peaceful life, especially when you’re moving to a new country. And if you’re moving to Canada, getting great insurance is key to financial liberation. In fact, some insurance covers are compulsory.

So to help you out, today’s post is going to talk about everything you need to know to get life, health, vehicle, and home insurance covers.

Getting car insurance as a newcomer in Canada

Everyone with a vehicle in Canada is required to have car insurance. So where possible, look into your insurance options before buying a car, especially since it’s cheaper to insure cars with high ratings. To check a car’s rating, check the International Bureau of Canada’s website.

Another factor that can affect the price of your insurance policy is your credit rating – always keep it healthy. Also, the liability limit you opt for is directly proportional to the premiums you’ll have to pay – the higher the limit, the higher the premiums. This is not a place to go cheap though – a low liability limit can cost you in the long run.

For instance, if you go for the minimum liability insurance Canada allows, $200,000, it may not be enough to cover a third-party’s vehicle repair and health costs if you get into an accident and it’s your fault. This will force you to pay the rest of the settlement yourself, no matter how substantial it is. That’s why it’s always safer to go for $2,000,000 of coverage.

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Getting health insurance as a newcomer to Canada

Since Canada has a universal healthcare system, your health costs will be low. However, to access the benefits of this system, you need to apply for a health insurance card. Interestingly, each province/territory has its own health insurance plan and coverage policy. So before you move to an area,  you’ll need to do some research.

You particularly need to check how long it will take for you to receive coverage – some provinces require you to wait for up to 3 months. In such cases, you’ll have to get private health insurance to cover you as you wait. No matter which part of Canada you live in though, you can access free emergency medical help, even without a health insurance card. So if you have a medical emergency, just go to the nearest hospital.

Getting life insurance as a newcomer in Canada

While it isn’t compulsory, life insurance is a good thing to have whether you’re living in Canada or not. It’s a great way to protect those you love when you pass away – it could help them pay your student debts, funeral costs, and even the education costs of your children.

If there’s one thing you should know about life insurance though, it’s that it comes in two types – term and permanent life insurance. While the latter has no limitations and is valid throughout your life, you can only secure the former for a set period. As such, permanent life insurance is usually more expensive than term one. No matter which one you go for though, the money obtained is tax-free and will be disbursed in a lump sum.

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Getting home insurance as a newcomer in Canada

This is yet another type of insurance that isn’t compulsory but is beneficial. Whether you’re renting a place or buying a home, it will protect your possessions. It’s therefore not surprising that most Canadian mortgage lenders will need you to have home insurance before they can approve your loan. Some common mishaps that are covered by home insurance include:

• When possessions like laptops and jewelry are stolen from your car – home insurance will cover this even if the theft occurs far away from your home
• When visitors trip and hurt themselves because your lawn is uneven. The insurance cover will not only protect you from lawsuits but also cover all the medical costs of the accident
• When there’s an ice storm that cuts your power for days, resulting in the rotting of all the food in your fridge and freezer – some insurance companies will pay you for the food loss

While home insurance may seem like an unnecessary additional cost, it provides a safety net for when the unexpected happens. Ultimately though, it’s up to you to decide whether this insurance policy is for you or not.

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