Almost everyone knows what insurance is. Making wise financial decisions, lowering your insurance costs, and making better financial planning are all possible when you learn about Canada’s insurance costs and the options available.
As a consumer, you are protected by an insurance policy or agreement with an insurer. As long as you follow the contract’s terms and conditions, you can receive compensation for property losses (or damages) or life losses (or injuries). An excellent strategy to get ready for unanticipated or unexpected circumstances that will require financial help is to have insurance. It decreases the risk that any mishaps will require you to pay out of pocket.
Among the five key types of insurance in this article are health insurance, car insurance, life insurance, tenant insurance, and home insurance. We will also discuss the factors that determine your insurance premiums, outline the average cost of insurance, and give you some tips for lowering them.
Canada’s insurance cost
Canada offers a variety of insurance options, including health, car, life, and tenant insurance. You regularly pay your insurance provider premiums in order to maintain coverage. These rates are determined using a variety of variables, and they differ depending on the type of insurance. Below are some examples.
Health insurance
Health care is provided for free by the Canadian government. A provincial or territorial health insurance program financed by the government will typically cover most of your basic medical needs. Medical expenses incurred while traveling, however, may not be covered by provincial health insurance, including prescription drugs, physiotherapy, nursing care, dentistry, ambulance services, wheelchairs and other durable equipment, critical illness or severe injuries, and physiotherapy. A variety of providers offer private or supplemental health insurance plans that cover these types of treatments.
Health insurance costs are affected by a number of factors, including:
- In addition to prescription medicines, dental care, physiotherapy, prescription eyeglasses, disability, critical illness, and long-term care, other benefits may also be covered under your plan;
- Plan cost is determined by the number of coverage days and out-of-pocket expenses/deductibles you have (the higher the coverage, the lower the out-of-pocket costs/deductibles).
- Number of covered individuals/dependents – whether you are the only one insured or your family members are included;
- Preexisting medical conditions, your age, and your health history;
- Location of residence.
Approximately $4,000 CAD is usually spent by Canadian families on private health insurance each year. Prices may vary depending on a variety of factors, including insurance coverage, deductibles, the number of dependents, age, medical history, and the province where you live.
To give you a better sense of how expensive health insurance is, here are some typical costs of tests, treatments, and operations in Toronto:
Dental procedures: Root canals often cost more than $800 CAD, while dental cleanings can cost as much as $300 CAD. The cost of a tooth filling typically ranges between $80 and $350 CAD.
Eye test and prescription eyewear: Depending on the product, price points range from $75 to $250 CAD. In Canada, the public healthcare system typically does not pay for eye exams. A few exceptions apply to children, the elderly, and those who require an eye test due to a medical condition. In Canada, glasses cost an average of $150 per pair.
Having a baby as a permanent resident in Canada
Almost all of the costs involved in becoming pregnant and giving birth in Canada are covered by national medical insurance. Postpartum rooms can cost several hundred dollars without private insurance or supplemental coverage, so you would be responsible for extra fees only if you choose a private room.
Canada’s insurance cost for cars and auto
It is absolutely essential that you have auto insurance if you own a car or other type of vehicle. Having auto insurance protects you against the costs of auto repair in the event of vehicle damage, accident, or injury to other individuals. The law in Canada prohibits drivers from driving without insurance.
Factors affecting the cost of car insurance
You can choose to increase or decrease your deductible amount depending on your age and driving history, as well as the province or territory in which you live.
Canada’s car insurance: It’s cost
The cost of vehicle insurance varies from province to province. In order to give you an idea of what auto premiums are like in Canada, we’ve compiled the following statistics courtesy of the GISA – (General Insurance Statistical Agency) and the IBC – (Insurance Bureau of Canada):
| Province | Average Auto Premium (CAD) |
| British Columbia | $1,832 |
| Alberta | $1,316 |
| Saskatchewan | $1,235 |
| Manitoba | $1,080 |
| Ontario | $1,505 |
| Quebec | $717 |
| Newfoundland and Labrador | $1,168 |
| Nova Scotia | $891 |
| New Brunswick | $867 |
| Prince Edward Island | $816 |
Tips for reducing auto insurance premiums
- Your VIN – (vehicle identification number) should be provided to your insurer. A different, more expensive car model or make could be quoted to you if you do not have the correct VIN.
- Comparing quotes from multiple insurance companies before buying auto insurance is a good idea
- In order to cover claim costs, you should increase your deductible.
- Utilization-based insurance (UBI) (also known as pay-as-you-driving or telematics). Your insurance is customized based on your driving pattern. This tool provides an objective picture of your driving habits based on the monitoring of your real-time driving behaviors. It may be possible to save money on insurance premiums at renewal if you exhibit better driving habits or improve your driving behavior. By reducing the premium and helping young and new drivers build insurance histories faster, these programs can benefit them.
- Older vehicles might be a good candidate for dropping collision coverage. In the event of an accident that is your fault, collision coverage pays for damages to your car, but the maximum it will pay is the car’s value. Your vehicle may not be worth the cost of collision coverage if it is worth less than $2,000 or $3,000 CAD.
- You may want to consider a home and auto insurance package.
- Your car should be equipped with a theft deterrent system approved by the manufacturer.
- Avoid license suspensions, parking tickets, and driving offense convictions to maintain a good record.
- From November to April, make sure your car has winter tires.
Life insurance
Your family and loved ones can count on life insurance for financial support when you are gone. The beneficiary gets a lump payment that is tax-free when the recipient dies.
Life insurance cost factors
Having a younger age will lower your premiums since your age affects how much you pay. Furthermore, life insurance premiums vary by gender; men pay more than women. Aside from the level of coverage you choose (the amount of money your dependents will receive as a death benefit if you pass away while maintaining your policy), the length of your policy (the longer the policy, the higher the cost), and your current health conditions, there are several other factors to consider.
Canada’s Cost of life insurance
Life insurance amounts vary based on personal factors, making it difficult to find an average. RBC Life Insurance offers a quote tool that allows you to provide your information online.
Advice on lowering life insurance premiums
- If you’re healthy and young, you should purchase life insurance.
- In comparison with a permanent life insurance policy, term life insurance can save you more money. As long as you keep up with your premium payments, permanent life insurance policies are valid for the remainder of your life. It is usually 10, 20, or 30 years before you become eligible for term life insurance.
- Short-term policies are better.
- Before you buy an insurance policy, make sure you compare quotes from multiple companies.
- It will be more economical to make annual payments rather than monthly payments.
- Make substantial savings by quitting smoking. The number of smokers who buy life insurance is 2x to 3x higher than that of non-smokers. A full year must pass after quitting smoking before applying for insurance. Avoid buying non-medical life insurance whenever possible.
Tenant insurance
Renting a house in Canada typically requires tenants to have tenant insurance. As a tenant, your property is protected, you’re covered if a visitor is injured, your third-party liability is covered if your apartment suffers damage from nearby apartments, and you’re also covered if you are forced to relocate after a disaster. Although your landlord may have homeowner’s insurance, it will not protect your possessions or your liability, so you will need to purchase your own policy.
Tenant insurance cost factors
Tenant insurance costs are determined by several factors, including:
- Property type (basement apartments may be more expensive due to flooding risk).
- Personal property coverage.
- A fire hydrant and a fire station are within a reasonable distance from your address (to determine the crime rate).
- You have a limit of liability.
- Detailed information about your claim history.
- Your building’s age and condition.
Canadian tenant insurance costs how much?
It is typically affordable to purchase renter’s insurance, but the amount of protection you need or the duration of coverage may increase the cost. Each month, Canadians pay an average of $20 to $30 in CAD for tenant insurance.
Homeowner’s Insurance
A home insurance policy or a property insurance policy can cover expenditures if anything unplanned happens to your house and possessions. A homeowner’s insurance policy can also help pay for repairs to your house following a severe storm, in addition to replacing your property if it is destroyed by fire or other natural disasters. Aside from theft coverage, it also covers additional living expenses in case your home is rendered uninhabitable by an insured incident, as well as a personal liability when someone is injured on your property.
Canada does not require homeowners’ insurance. In any case, if you’re seeking a mortgage, your bank or lender will likely require that you have an active homeowner’s insurance policy. The responsibility of owning a home is huge, and it can affect your financial security if something goes wrong. Consequently, homeowners should purchase insurance.
Homeowners insurance cost factors
Your property’s size and composition are the two biggest factors affecting your insurance premium (the bigger the house, the higher the premium). In addition, the following factors were taken into account:
- Construction quality and age of your property;
- Home type (semi-detached, condominium, vacation home, etc. );
- Your home’s contents and appliances; their condition and value;
- Setup of piping and electricity;
- Your home’s location (if it’s in an earthquake, flood, or tornado-prone area);
- You live in a neighborhood with a high crime rate; and
- Detailed information about your claims.
Canadian homeowners’ insurance costs how much?
In 2018, JD Power & Associates’ 2018 Canada Home Insurance Study found that home insurance costs on average $1,284 CAD in Ontario and the Atlantic provinces. This contrasts with a low of $1,200 CAD in the western provinces and $960 CAD in Quebec.
Homeowners insurance tips for reducing premiums
- Insurance packages that include house and auto insurance are available. Bundling can result in discounts.
- Before making a purchase, compare quotes and shop around.
- Discounts could be offered if you put up home security measures.
- Be sure to maintain the condition of your home. You may qualify for a lower homeowners insurance premium if you install a new furnace that reduces fire hazards, change your siding from wood to non-flammable aluminum or brick, and/or make regular repairs to items like your roof, porch steps, walkways, and driveways to reduce hazards.
