by Stephen Tustin | Oct 10, 2024

Protecting yourself and your family against unexpected danger and risk is what insurance in Canada is all about for newcomers to Canada and international students.

Knowing about the different kinds of insurance in Canada available to you is important even before you arrive.  

Insurance is part of your personal finance portfolio. Knowing how it works is smart financial planning that can save you money and build security.

We’re here to help you find the right insurance for your new life in Canada. 

For example, the first type of insurance most newcomers need to understand is renters insurance. Most landlords require it (we explain below). And then there’s health insurance plans. And for those who purchase a car for work or travel auto insurance is a must. 

Insurance is one of the key ways that newcomers to Canada can manage risks. Things can go wrong. Accidents happen. Floods happen. And you don’t want to start over financially from scratch. So, when you purchase insurance, you transfer the cost of a potential loss to the insurance company in exchange for a fee (known as the premium). Insurance companies invest the funds securely, grow, and pay out when there’s a claim.

An insurance broker is not the same thing as an insurance agent. Brokers know how insurance policies work and can access more options than an agent. This lets them pick the best rates for the coverage you need from many insurance companies.

An insurance premium is the amount you or your business pays for an insurance policy. Insurance premiums pay for policies that cover things like healthcare, auto, rental, home, and life insurance.

Risk insurance protects your home and property from “risks and perils.” It covers property damage or loss from accidents or unforeseeable incidents (flood, sewer backup, frozen pipes, etc.)

Most renters in Canada get renter’s insurance and many landlords and buildings require it so it is highly recommended for newcomers and international students as it protects and reimburses you in the event of an emergency. When you rent your first home as a newcomer to Canada or as an international student, remember that while you DO NOT own the property, you most likely DO own the contents (furniture, electronics, personal possessions, valuables, etc.). 

Renters insurance is a must-have because most landlords in Canada require and here are five reasons why you need it.

This is true but that only covers the building you’re living in. It does not cover your family’s belongings. The landlord’s insurance can’t always protect you from everything that could wrong in your new home in Canada. Renters’ insurance does. Learn more about why you need renters’ insurance.

Canada is renowned for its healthcare system, and quality healthcare is one of the reasons newcomers seek to build a life here. Government health insurance programs like OHIP in Ontario and AHCIP in Alberta let you apply for coverage once you arrive in Canada and establish your permanent residency 

But, it’s smart to buy travel medical health insurance to cover unexpected medical expenses before you and your family can join a government health insurance program. Without it, you could end up paying significant out-of-pocket costs. 

Once you arrive in Canada and establish your permanent residency government health insurance programs allow you to apply for coverage. But, in some provinces, there is a wait period before you are eligible for government health insurance. That’s where private insurance coverage is a good idea for both temporary visitors to Canada and people on the path to becoming permanent residents and Canadian citizens.

Read here.

Buying travel medical health insurance can be challenging for newcomers and international students and requires navigating the process with risk factors related to age and pre-existing health conditions. Finding the right coverage is important. It’s vital to know the basic requirements you or a loved one need before you buy a travel medical health policy.

When purchasing travel insurance, there’s no one-size-fits-all solution. As a newcomer to Canada, you need to understand your options and then select the right coverage based on key factors like age, dependants, health status, and deductible preference.

Read More

Building a strong financial foundation is vital to your success. Join this webinar to start your banking journey in Canada on the right foot!

At some point, most newcomers to Canada buy a car, whether to get to work, get things done, or travel. In Canada, you MUST have car insurance if you own a car or other vehicle. This insurance protects you from:

• Repair bills if your car or another vehicle is damaged or in an accident

• Liability claims if you’re responsible for an accident that injures people or damages another person’s vehicle.

Again, car insurance is a must if you own a vehicle. 

In Ontario, every vehicle is required to be protected by an insurance policy. The monetary fines for not having insurance are severe. If caught driving without insurance, your driver’s license could be suspended for a year and your vehicle impounded for up to three months. It’s important to understand which car insurance is mandatory to be fully protected.

The Insurance Bureau of Canada's list of top stolen cars in Ontario. pic.twitter.com/IpGuQWC7f9

— Olú (@Olufemiloye) April 10, 2022

What does car insurance cover? An auto insurance policy is an in-depth document that describes in detail what each section protects. Always be sure to consult an insurance professional if you have any specific questions about your coverage. Read Here. 

Which cities in Ontario have the highest insurance rates? While this might not be a deal breaker when choosing the city where you wish to live and work in Canada, it’s always good to know where and why auto insurance is more expensive. Read Here.

Can I insure a vehicle that is not in my name? That’s a good question for newcomers – and it’s complicated. There definitely are several different scenarios where someone, perhaps a family member or friend, might ask you to insure a car, not in your name. As always, consult an insurance professional. Read Here. 

To discover more about Auto Insurance, click here.

Did you know that most newcomers to Canada buy a home within 3 to 5 years of arriving? It’s true. And for most of us, it’s the largest purchase we make.  So, it’s smart to become familiar with homeowners’ insurance. It’s an important part of your financial security net and in many cases a requirement if you have a mortgage. Knowing how much you’ll have to pay for your coverage should be factored into where and what you buy.  

Yes, they do. There is a median value for all of Ontario but this can be misleading as many factors contribute to your homeowner’s premium.

Yes, natural disasters – ice storms in February to flooding in April to wildfires in August— happen in Canada and are devastating. Home insurance helps protect you and your family from the potential life-altering effects.

What is all-risk insurance?

All risk is one of two types of home insurance; the other is known as a “named perils” policy. The main difference is that a “named perils” policy only covers potential instances that are listed (anything else isn’t covered), whereas an “all-risk” policy covers just about everything except for specifically named exceptions.

Mortgage insurance (not to be confused with home insurance) sometimes called home buyer’s insurance in Canada, is a way to help you spend less upfront yet still afford your home. Mortgage insurance helps you secure your home sooner rather than later by lowering the down payment you must make.

No matter where you choose to live in Canada as a newcomer, these are essential living expenses for almost ALL first-time homeowners. Read Here.

Why do I need it? For newcomers to Canada who are entrepreneurs, business insurance can sometimes seem like an extra burden. Some business owners don’t consider business insurance a necessity. Your company has financial and legal risks even if you don’t have inventory or a retail location.

More newcomers to Canada are arriving with pets (we love pets!). Dogs, cats, and whatever. Pet insurance has increasingly become more important, regarding pet health and owner liability. 

Your dog is legally your “property” which can come with a fair amount of liability exposure if you’re not careful. For that reason, dog bites usually fall under the purview of your personal liability insurance, which is a part of your home insurance policy. Because of this liability exposure, advise your insurance broker (and landlord!) that you have a dog.

Finding the best pet health insurance depends on your pet’s situation and the coverage.

 If you would like to know more about insurance in Canada, here are some helpful links:

• Insurance blogs

• Insurance Bureau of Canada

• Financial Services Commission of Ontario

• Canada Mortgage and Housing Corporation

• Government of Canada, Insurance Company Regulation

• Canadian Underwriter News

Read more about your financial first steps in Canada.

A lesson many newcomers learn when they arrive in Canada is that you need credit to pay for large expenses, buy a car, or purchase a home. However, it’s difficult to borrow without a credit history in Canada. 

Opening a bank account before you arrive in Canada offers many benefits including transferring funds before you travel to Canada. 

For newcomers and international students arriving in record numbers, it’s helpful to understand how the currect inflation rate in Canada can affect how much you pay for housing, groceries, transportation, and other expenses.

Protecting yourself and your family against unexpected danger and risk is what insurance in Canada is all about for newcomers to Canada and international students.

If you became a permanent resident and lived in Canada, even for a short period, filing your first income tax return with the Canada Revenue Agency (CRA) can provide financial benefits.

Recently, Dave Frattini, Managing Partner of Prepare for Canada and Rentals for Newcomers, sat down with Robin Ingle, CEO of Ingle International Insurance, to discuss the importance of Travel Medical Health insurance for immigrants arriving in Canada. 

In their discussion, Ingle, whose mother was an immigrant, explained the Canadian healthcare system, how Travel Medical Health insurance for immigrants works, and why it’s important for newcomers. He emphasized the social-based nature of Canada’s healthcare system and the need for newcomers to buy medical insurance to avoid unexpected expenses

Ingle is an acclaimed specialist in special risk insurance.

Myths About Healthcare in Canada

Ingle provided valuable insights for immigrants on Travel Medical Health insurance and why it’s important to understand coverage levels and policy information. This can help newcomers who do not have provincial health insurance when they first arrive avoid unexpected and high medical costs.

Their discussion explains why newcomers to Canada (and international students) should prepare for healthcare and insurance costs before arriving in Canada. Ingle also dispelled myths about Travel Medical Health insurance.

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PfC: You’ve been helping newcomers with insurance for over 50 years. Can you share your company’s history and why you’re passionate about it?

Robin Ingle (RI): I come from an immigrant family. Two hundred years ago, my father’s family moved from Pennsylvania to Canada, and my mother moved from Finland to Canada for a better life with her family. That’s how they met.

After World War II, when Canada started receiving an influx of immigrants, my parents focused on health insurance for newcomers. That was before there was a social health care system in Canada. They concentrated on helping people in the way that Prepare for Canada helps newcomers acclimate to Canada, find housing, and the biggest part, health insurance.

Today, we work worldwide. Providing services and coverage to new newcomers is in our DNA.

PfC: Before we discuss the importance of insurance for newcomers, can you give an overview of the Canadian healthcare system and how it works?

RI: There are misunderstandings about the Canadian healthcare system. It is a social system, but it only applies to permanent residents in Canada who are part of a provincial government health insurance plan. If you do not have PR status, you’re considered a non-resident. If you are getting your permanent residency but haven’t applied for your provincial health plan, you’re considered a non-resident until you join the provincial plan.

In Canada, the costs of healthcare services for non-residents are high. Visiting a clinic can cost anywhere between $100 and $200. Going to a hospital and emergency room can cost anywhere from $2,000 to $5,000. If you have to stay in the hospital on an inpatient basis, it can be $3,000 or more per day.

Major hospitals charge $17,000 or more for a day’s stay in an intensive care unit. This is very expensive for people outside the provincial government health system.

An important thing that people need to understand is that healthcare providers in Canada are private. The provincial government is the biggest payer and manager of the government health system. A private doctor bills the government, and the government pays the largest portion of their bills (only a small amount of patients are non-residents). The government pays the physicians and the hospitals. So it’s a slightly different system than in the UK or Europe.

PfC: Why should newcomers buy Travel Medical Health insurance?

RI: The cost is not high. For example, for a family, you will pay insurance for three months. You might pay upwards of $500 for three months to cover the waiting period before you get onto a provincial health plan. That would cover inpatient hospitalization, outpatient care, and emergency visits to a clinic.

Most newcomers who have come through the immigration process are healthy, so the cost is reasonable and in line with the type of risk.

PfC: You stated that newcomers don’t have provincial coverage until they obtain their health card. It’s important to stress that any medical incident can be costly without provincial or private healthcare.

RI: You need to be prepared. You pay a small amount for the coverage and know you and your family will be covered if something happens, like an accident.

A while ago, my sister fell and broke her hip and had to go to the hospital. That was an accident. You could get the flu, or a bee sting and need to go to the hospital because of an anaphylactic shock. Insurance covers hospital visits under these plans. 

PfC: When should newcomers purchase Travel Medical Insurance?

RI: People can purchase insurance before or after they arrive. However, depending on the coverage, there is a 48-hour waiting period when you arrive. This means you can’t claim for a sickness within 48 hours of buying it. 

PfC: Who should purchase Travel Medical Health insurance? 

RI: Newcomers do not want to begin their lives here with extra bills. Health insurance coverage is worth a small amount of money for anybody not covered under a provincial government health plan.

Also, Canadians returning from working, studying, or living outside Canada for more than 183 days must reapply for their provincial government health plan, depending on the province. And they have to wait up to three months to get that coverage. So insurance is not just for newcomers. It’s also for those who have been out of the system for some time.  

PfC: Who is eligible for Travel Medical Health insurance?

RI: Anybody coming into Canada who is a non-resident, a newcomer, or anybody applying for permanent residency. Or anyone going through the immigration process as a refugee. Anybody in these categories considered a newcomer can apply.

First and second-generation Canadians who are already citizens often buy coverage when their families visit. They often don’t think about this because they’re now Canadian citizens. They don’t realize how much medical costs can be for visitors or grandparents visiting.

You also have new rules, like the Super Visa, where you can bring an older relative over for a period of time if you’re a new Canadian. So, you need Super Visa visitor insurance. You need a minimum coverage of $100,000 for 12 months. There are different categories, but anybody visiting who’s not covered should get coverage. 

PfC: Are there groups that are not eligible for Travel Medical Health? 

RI: There are no ineligible groups. If you do not have coverage under a provincial government plan, you should get it. And, if you have a pre-existing medical condition, you need to ask questions because the plans may not cover that medical condition.

If you’re (a visitor) taking medication for a pre-existing heart condition, for example, and go to the hospital and try to buy the coverage, you will not be eligible for most plans. 

PfC: What should newcomers look for in a Travel Medical Health Insurance policy?

RI: Often, newcomers or Canadians bring relatives over and must buy visitor insurance or provide coverage before they enter a provincial health plan. They’ll buy the cheapest product, which means less coverage. I advise that they buy the mid-level coverage. With low coverage, you can get $100,000 or $50,000 worth, but that can disappear quickly. If you’re in the hospital for even a few days, it can cost $50,000, and the low-coverage insurance won’t cover anything else.

Choose between $350,000 and $500,000 worth of coverage. Make sure you’re covered for the full period you need. Ask for additional coverage if you need it.  

PfC: We’ve talked about “travel medical health insurance,” which often goes by different names. What should newcomers look for to ensure their travel medical health needs are covered? 

RI: Here, it’s called Visitor to Canada insurance. Be sure you read the information provided and understand what is covered. Financial literacy is important, especially with insurance and financial products.

Ensure the insurance covers you and your family for doctor visits and hospitalization if needed. If you need medication for an emergency, ensure it is covered. For newcomers, that would be Super Visa insurance.

PfC: Could you expand on the difference between travel medical health insurance and travel insurance? 

RI: Travel insurance in Canada draws a good distinction between the two.

Travel insurance in the Canadian market is traditionally for a Canadian citizen travelling outside of their home province in Canada. Travel insurance within Canada covers the difference between what the province and the insurance will cover. So, it’s a different level of coverage.

Also, when people leave their country of origin or their original country of residence, they often buy local coverage, which may not have the same level of coverage they will need in the Canadian market. So make sure you compare the products. We’ll provide background information if anybody has questions.

PfC:  Can you explain the relationship between Ingle Insurance and Aha, your broker of choice for Prepare for Canada?

RI: Aha is a great property and casualty organization providing automobile, home, and business insurance access. We like how they do business, and we use their platform to compare products. We fit well because we have access to our products, and all major companies to get the right product to fit the individual’s needs. That makes a big difference. Plus, Aha provides information to help individuals understand what kind of coverage they need and how to get it. We do exactly the same thing. 

Related Posts:

Insurance in Canada: What Newcomers Need to Know

Why Newcomers Need Tenant Insurance

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*NOTE: This interview has been edited and condensed

Steve Tustin is the Editor for Rentals for Newcomers and a contributing editor for Prepare for Canada.

He is also the former managing editor of Storeys.com and a former senior editor at the Globe and Mail and the Toronto Star.

*Prepare for Canada did not use AI-generated content in writing this story; all sources are cited and credited where possible.

© Prepare for Canada 2024

Buying tenant insurance is essential for international students renting, studying, and working in Canada.

Having tenant Insurance can save you from unforeseen costs and protect your possessions, and your school may even require it (college or university if you’re living on-campus).

Landlords may demand tenant insurance

Likewise, if you’re renting off-campus, your landlord may demand it as part of the rental agreement. 

So, what is student tenant insurance, what does it do, and how do you get it?

Tenant Insurance covers your personal property, liability, and additional living expenses if, for example, you must move temporarily due to an event such as a flood or fire in your apartment or building.

Tenant insurance protects students

While your landlord will have insurance, this will only cover the building itself; for example, it does not insure your belongings or cover your liability in case of damage or injury. 

So tenant insurance, also known as renters insurance, gives you security and protection – in other words, peace of mind. 

7 things international students must know about tenant insurance

• 1. YOUR STUFF
• Tenant insurance covers your personal belongings within your apartment. The insurance helps pay for any loss or damage to your personal property (and includes items damaged or stolen).  Your stuff – such as electronics, phones, laptops, gaming systems, and jewelry is expensive and valuable. They are also prime targets for thieves.
• 2. LANDLORDS LIKE IT
• Landlords expect you to have tenant insurance. They will ask for a copy of your policy before you move in.

• 3. SO DO SCHOOLS
• If you live on campus in student housing, your school (university or college) will likely insist you have renters’ insurance. The school is your landlord. Most schools will detail in the residency agreement that they are not liable for theft or damage to student property.

• 4. EMERGENCIES HAPPEN
• Tenant insurance ensures that if you can’t live in your apartment due to a covered emergency such as a fire, you will get financial assistance for temporary accommodation (like a hotel or Airbnb) and food.

• 5. ACCIDENTS HAPPEN, TOO  
• Count on it, and some are costly. Personal Liability coverage in your tenant insurance policy protects you if your landlord holds you responsible for property damage or personal injury to someone at your apartment. Also, parties and sharing student accommodations with others bring visitors, including some who may cause damage or steal your stuff.  You could be held responsible if they damage your home or injure someone.

• 6. IT IS NOT THE LAW
• Legally, you do not require tenant insurance in Canada. No law makes renters purchase tenant insurance coverage, but remember that it protects you and provides security and peace of mind. And, of course, your landlord may obligate you to buy it according to the terms of your lease agreement with your landlord.

• 7. IT IS AFFORDABLE
• Given how affordable contents insurance is for renters in Canada, it makes sense for students to insure their valuables, particularly those living so far from home.

How do international students get insurance?

Contact an insurance company and talk to the broker about renters’ insurance for university and college students. They have the knowledge and expertise to guide you through this process. Here’s a handy link where you can get a quote online.

Remember, when you decide to get tenant insurance, read the agreement carefully to know what is covered (and what is not!). Be sure to share the agreement with your landlord.

Also, it’s always a good idea when looking to rent a home in Canada to inform a prospective landlord that you intend to get tenant insurance. This shows landlords you will be a responsible tenant.