Canada insurance providers

How to choose insurance in Canada

Buying insurance is often a necessary evil. I don't think anyone actually enjoys purchasing insurance, but if something bad happens you sure are glad that you have it. Here is some information on the insurance business in Canada and how to choose the best insurance for your needs.

What are insurance products?

Insurance products (also known as insurance policies) are the aggregate of the money that you pay (called a premium) to the insurance company to ensure that if you lose something of importance to you, you are adequately compensated.

In addition to the mainstay life insurance and health insurance products, insurers offer specialized policies for different industries and niches such as crop insurance, business continuity insurance, and accidental death and dismemberment insurance.

What is an insurance claim?

When "something bad happens" you will likely be making an insurance claim. This usually involves submitting paperwork to your insurance company so that you can get money when your house burns down, or your car gets damaged, or your pet gets sick.

Making an insurance claim is where the rubber meets the road when dealing with insurance providers. It is the sign of a good insurance provider that your claim is processed quickly and with minimal inconvenience.

What is a deductible?

A deductible is the amount of the insurance claim not covered by your insurance policy. For example, if the deductible for your car insurance is $400 and you get $1000 worth of damage, then you will be paying the $400 out of pocket and the insurance company will pay the remaining $600.

You may be able to get a lower deductible in exchange for paying a higher monthly insurance fee.

What is an underwriter?

An underwriter is responsible for evaluating the risk associated with providing a certain type of insurance to a certain type of customer, and deciding the fee for providing this insurance. For example, a life insurance underwriter may decide that smokers should pay a higher fee and/or have a higher premium to account for the increased risk of heart and lung disease.

What makes a good insurance agent?

A good insurance agent should help you adjust your insurance products as your needs evolve. For example, when you are single or recently married you might not require life insurance, but you certainly do when once you have children. Your insurance representative should ensure that you have the best coverage for your needs, within the budget that you define.

Find local Insurance in hundreds of cities across Canada

Featured Insurance