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Canada Insurance Guide

the insurance in Canada. The auto insurance is mandatory in all the provinces (the "mandatory auto insurance" — the "third-party liability minimum" — the "Ontario $200,000 minimum" — the "BC $200,000 minimum"). The home insurance is required by the mortgage lender (the "homeowner insurance" — the "property insurance" — the "comprehensive coverage"). The life insurance provides the "death benefit" to the beneficiaries (the "term life" — the "whole life" — the "universal life"). The health insurance covers the "medical expenses not covered by the Medicare" (the "prescription drugs" — the "dental" — the "vision" — the "paramedical"). The travel insurance covers the "medical emergencies outside the province" (the "out-of-province medical" — the "travel medical insurance"). The FCAC (the "Financial Consumer Agency of Canada") accepts the complaints about the "bank-owned insurance companies". The OmbudService for Life and Health Insurance (OLHI) handles the life and health insurance complaints. The General Insurance OmbudService (GIO) handles the home and auto insurance complaints.

Home Insurance

• Homeowner insurance: The "comprehensive coverage" (the "all-perils") — the "named perils" (the "list of the covered risks"). The coverage includes the "building" (the "structure"), the "contents" (the "personal property"), the "liability" (the "third-party injury"), and the "additional living expenses" (the "ALE" — the "hotel and food if the home is uninhabitable").
• Condo insurance: The "condo unit coverage" — the "walls and the fixtures inside the unit" — the "personal contents" — the "liability". The "condo corporation's insurance" covers the "common elements" and the "building structure".
• Tenant insurance: The "rental insurance" — the "contents coverage" (the "furniture, the electronics, the clothing") — the "liability coverage" (the "injury to the visitor") — the "additional living expenses". The tenant insurance is NOT required by the law but the landlord may require it.

Auto Insurance

• Mandatory coverage: The "third-party liability" (the "$200,000 minimum" — the "$1 million or $2 million recommended"). The "accident benefits" (the "medical, the rehabilitation, the income replacement"). The "uninsured motorist" (the "coverage if the at-fault driver is uninsured"). The "direct compensation" (the "property damage coverage" in the "no-fault provinces").
• Optional coverage: The "collision" (the "damage to the own car from the accident"). The "comprehensive" (the "theft, the vandalism, the fire, the hail"). The "loss of use" (the "rental car coverage"). The "waiver of the depreciation" (the "new car replacement").
• Provincial systems: The "Ontario" — the "private insurance" (the "rate-regulated by the FSRA"). The "BC" — the "ICBC public insurance" (the "government insurer"). The "Quebec" — the "SAAQ for the bodily injury" (the "private insurers for the property damage"). The "Alberta" — the "private insurance" (the "rate-regulated"). The "Saskatchewan" — the "SGI public insurance". The "Manitoba" — the "MPI public insurance".

Life & Health Insurance

• Term life insurance: The "temporary coverage" — the "10-year, the 20-year, the 30-year term". The "death benefit" is paid to the beneficiary if the insured dies within the term. The term life is the "most affordable" and the "most popular" (the "term life is 90% of the life insurance policies in Canada").
• Permanent life insurance: The "whole life" (the "lifetime coverage" — the "cash value accumulation"). The "universal life" (the "flexible premium" — the "investment component"). The permanent life is more expensive than the term life.
• Health and dental insurance: The "employer health plan" (the "group insurance" — the "workplace benefits"). The "private health insurance" (the "individual plan" — the "Blue Cross" — the "Manulife" — the "Sun Life"). The "COBRA-style coverage" (the "continuation of the group benefits" — the "optional insurance").

For the mortgages and the mortgage insurance (CMHC), see our Mortgages Guide →. For the retirement planning and the RRSPs, see our RRSP Guide →.