Insurance in Canada: A guide for expats

Insurance is a major industry in Canada, with many companies offering a wide range of products. However, while many types of insurance may be desirable, few are legally required.

Understanding how the insurance market works is important for finding the right coverage for your needs and selecting a suitable provider.

This guide gives an overview of insurance in Canada – what it is, how it works, and the types available. It is intended for general information only and should not be considered professional advice.

Overview of insurance in Canada 🇨🇦

Canada’s insurance market ranks in the top 10 in the world, based on the value of policies purchased across both property, health, life and other categories. Most insurance in Canada is privately purchased, with people and businesses paying monthly or annual premiums. In addition to this, workers contribute to mandatory social insurance programs like the Canadian Pension Plan through payroll taxes.

Regulation of insurance is tackled at both federal and local levels. For federally regulated insurance, the Insurance Companies Act is the guiding legislation. There are further rules set out by provinces and territories, for things like mandatory levels of auto insurance.

There are two main categories of insurance in Canada:

• Property and casualty insurance, which covers things like homes, cars, and businesses.
• Life and health insurance, which covers personal health, disability, and life protection.

As well as government agencies, there’s also the Insurance Bureau of Canada which is the insurance industry body for Canada and which lobbies for better understanding and use of insurance.

How does insurance work for expats in Canada?

Insurance in Canada generally works the same way for expats as it does for Canadian citizens. However, some types of coverage – especially health and life insurance – may require proof of Canadian residency.

It’s important to remember that while Canada’s public health system is paid for through taxes (Medicare), the actual provisions can vary by your residential location.

Not all elements of care are paid for by the government, and there may be a waiting period to access treatment if you’re an expat entering the country for the first time.

This usually means that expats choose to have private health cover – at least as they settle into their new home in Canada.

If you move to Canada and already have insurance in your home country, contact your insurer to ask whether your policy can be transferred or extended. In some cases, overseas insurance remains valid if the company has a license to operate in Canada and your plan includes international coverage.

Many expats choose global insurance plans, such as international health or life insurance, offered by specialized providers. These plans are useful if you travel frequently or need coverage in multiple countries, including Canada.

Do I need an insurance ID number or card as an expat in Canada?

To access the public health system you need a provincial health card (with an ID number). The requirements including wait times vary depending on where in Canada you live, and so you’ll need to check with your local province or territory to understand how to get your card and number.

You don’t need a special ID number or card to buy private health or other types of insurance in Canada. When you take out a policy, the insurer will give you a policy number – this is what you’ll use when filing a claim or seeking assistance.

If you’re an expat in Canada, services like Wise can make managing your international finances easier. Wise lets you send money to 140+ countries using the mid-market exchange rate with no hidden fees.

With a Wise multi-currency account, you can hold and exchange money in 40+ currencies and receive international payments in 20+ currencies, which can be very helpful for managing claims or premiums from abroad.

Which insurance in Canada is legally required?

Auto insurance

Auto insurance helps protect drivers of cars, trucks, and motorcycles against financial losses from accidents, theft, or damage. Auto insurance coverage rules, requirements and purchase options are set out by provinces and territories.

In some places, like Alberta and Ontario you can buy all your auto insurance from private providers of your choice. In other areas, including British Columbia, you are obliged to get a basic level of coverage from the government insurer, and can then also choose to buy additional policies from private insurers to get a more comprehensive cover overall.

Finally, in Québec you must buy some insurance from a government provider, with other mandatory cover elements purchased from the private market.

The main types of auto insurance are:

• Liability insurance: Covers damage to other people, or to another person’s property or vehicle when you are at fault.
• Accident benefits: Pays for medical costs and related expenses if you’re in an accident.

Drivers can purchase extra coverage to protect against risks not included in the minimum legal requirements, such as:

• Collision coverage: Pays for repairs to your own vehicle after an accident, even if you were at fault.
• Breakdown coverage: Helps cover towing and emergency repair costs.
• Comprehensive coverage: Protects against theft, vandalism, fire, natural disasters, or other non-collision damage.

Some comprehensive policies also offer added benefits, such as paying for a replacement vehicle while yours is being repaired.

Most standard policies do not cover theft of personal items from the vehicle – your home insurance might cover this though.

Home insurance 🏡

Home insurance helps protect your home and belongings against risks such as theft, fire, or storm damage. Although not strictly a legal requirement in Canada, mortgage lenders may ask you to have it before approving a home loan.

As well as home insurance there are also specialist policies for condos and for tenants. These focus on your property and belongings rather than on insuring the fabric of the building.

Home insurance usually covers things like:

• Damage to the fabric of your home
• Damage, theft or loss of your personal possessions
• Personal property stolen from your vehicle
• Injury to visitors to your home or property
• Accidental damage you cause to somebody else’s property

Most home insurance policies don’t cover:

• Damage caused by earthquakes or floods (you’ll need separate policies for those)
• Normal wear and tear or maintenance issues
• Negligence or intentional damage

When you buy home insurance, you’ll usually be asked for the estimated value of your home and belongings, as well as details of any security features in your home, such as alarms or smoke detectors.

Canada Pension Plan (CPP)

More or less all employed and self employed people in Canada are covered by the Canada Pension Plan aside from Quebec which has its own Quebec Pension Plan.

This isn’t a private insurance policy, but rather a government backed social insurance plan which employees and employers, as well as the self employed, pay into. Once you are eligible you can use your CPP contributions as the basis of a claim for retirement benefits, or for other benefits including disability benefits for example.

Employment Insurance (EI)

Canadian Employment Insurance offers benefits for unemployed people, including those who take time off work due to illness, pregnancy or caring. Again this is a social insurance you can claim by making contributions while you’re employed in Canada.

Insurance for businesses with employees 💼

Employers must pay their own contributions for CPP and EI and might also need to pay for mandatory Workers’ Comp based on provincial rules.

Many large employers may also offer private health insurance, including different plan levels, allowing workers to choose the coverage that best fits their needs.

Optional forms of insurance in Canada

Health insurance

Canada’s public health system is free at the point of need, but does have limitations and restrictions. It doesn’t cover every possible cost, and there may also be a wait time before you can access help if you have moved to the country recently. For this reason many people in Canada also buy additional private health insurance to cover all eventualities. Some employees of large companies also receive private health insurance through their employer.

Life insurance 👥

Life insurance provides financial protection for your loved ones if you die or become critically ill. It can help cover living expenses for dependents, mortgage payments, outstanding debts, and funeral costs.

When a claim is made, the insurer usually pays a lump sum to the chosen beneficiaries. The amount depends on the coverage level and type of policy you choose. The main types are:

• Term life insurance: Covers you for a set period—typically 10 to 30 years—often during times of higher financial responsibility, such as raising children or paying off a mortgage.
• Permanent life insurance: Lasts your entire life, guaranteeing a payout whenever you die. Premiums are higher, but the policy often includes a cash value component that can be borrowed against or withdrawn.
• Universal life insurance: A flexible form of permanent life insurance that allows you to adjust your premiums and death benefit over time.

Some employers provide group life insurance as part of their employee benefits package. This coverage is usually limited, so many people choose to buy additional private insurance for full protection.

Common exclusions on life insurance policies are deaths due to suicide, high-risk activities, and undisclosed underlying health conditions. Policies may also become invalid if you stop being a Canadian resident, so check with your insurer before moving abroad.

Life insurance premiums in Canada vary widely based on age, gender, health, lifestyle, and coverage amount.

Disability insurance

Disability insurance replaces part of your income if you’re unable to work because of illness or injury. There are two main types: short-term (usually for a period of up to two years) and long-term (for longer periods, sometimes lasting a lifetime).

The percentage of income replaced depends on your plan. Most policies have a waiting period before benefits begin, which can range from a few weeks to several months.

Policies typically exclude self-inflicted injuries or those resulting from criminal offenses.

If your illness or injury is work-related, you may instead be covered by workers’ compensation insurance, which is separate from disability insurance.

Pet insurance 🐱🐶

If you have a pet in Canada, you can buy pet insurance to help cover vet bills. Most policies are for dogs and cats, but some insurers also offer coverage for birds, horses, or exotic pets.

Standard pet insurance typically covers accidents and illnesses, and you can often pay extra for plans that include preventative care – such as routine checkups, vaccinations, and dental cleanings.

Policies usually don’t cover pre-existing conditions or cosmetic procedures (like ear cropping or declawing).

Travel insurance ✈️

If you’re planning to travel abroad, travel insurance can help protect you against trip cancellations, lost luggage, and medical emergencies overseas. The cost depends on the level you choose.

Common exclusions include non-emergency medical treatment and losses caused by negligence (for example, leaving luggage unattended).

If you already have private health insurance, check whether it includes international coverage to avoid paying for duplicate protection.

Business liability insurance 🏢

There are two main types of business liability insurance in Canada:

• Commercial General Liability (CGL): Covers claims for bodily injury or property damage caused to others.
• Professional Liability (Errors and Omissions – E&O): Covers claims and legal costs resulting from professional mistakes, negligence, or failure to deliver services as promised.

Liability insurance isn’t legally required for all businesses or freelancers, but it’s often necessary to secure contracts or professional licenses. For example, doctors, lawyers, and construction companies typically need liability coverage. Even when not mandatory, it’s strongly recommended to help protect against costly legal claims or damages.

How to choose an insurance company in Canada 🇨🇦

When choosing insurance in Canada, you may want to consider a number of factors beyond premium price, such as:

• Flexibility: Can you tailor the policy to meet your needs, ensuring that essential coverage isn’t excluded and you’re not paying for benefits you don’t need?
• Deductible options: Many forms of insurance include a deductible, which is an amount you must pay when you make a claim before the insurance applies. Can you adjust the deductible to lower or raise your premiums?
• Claims process: How long do claims take? Does the insurer deal with payments directly or do you need to pay upfront and request a reimbursement?
• Customer reviews: How does the company rate on independent review platforms or customer satisfaction surveys?
• Overseas coverage: Is the policy still valid if you travel or move abroad?
• Ethics and sustainability: How does the company perform on corporate responsibility and sustainability rankings?

Tools for comparing insurance in Canada

• Rates.ca or LowestRates.ca – compares real time quotes for a range of insurance types including auto insurance and home insurance
• Compare Health – you can search for affordable health insurance, including dental cover options

Making insurance claims

If you need to make an insurance claim in Canada, the first step is to contact your insurer as soon as possible. Many companies now allow you to file claims online, although you can also do this by phone or mail.

The exact process varies between insurers, so check your policy documents or the company’s website for specific instructions. Typically, you’ll need to provide your policy number and complete a claim form with details such as the date, location, and nature of the incident. You may also need to submit supporting documents, such as photos, receipts, or police reports.

Your insurer may contact you for more information while reviewing your claim. Most claims are resolved within around 30 days, although more complex cases can take longer.

If you’re unhappy with how your claim is handled, first raise the issue directly with your insurer. If it’s not resolved, the Canadian government website has information on how to file an insurance complaint.

If you’re an expat in Canada making a claim on an international insurance policy, you can use a Wise multi-currency account to receive your payout. The account lets you receive payments in 20+ currencies.

You can also send payments to accounts in 140+ countries with Wise. International transfers are quick and low-cost, using the mid-market exchange rate with no hidden fees.

Glossary of Canadian insurance terminology 🇨🇦

📌 Name	📂 Description
Deductible	Portion of the insured loss paid by the policyholder.
Premium	Money charged for the insurance coverage reflecting expectation of loss.
Risk	The chance of loss, and the likelihood of incurring loss or innjury.
Term	Period of time for which policy is in effect.
Underwriter	Person who identifies, examines, and classifies the degree of risk to determine whether or not coverage should be provided and, if so, at what rate.

Useful resources

(last checked 19th January 2026)

• Canadian government – Insurance landing page with links to useful detail on different types of insurance
• Canadian government – Getting an insurance policy
• Insurance Bureau of Canada – Insurance industry body for Canada
• Insurance Bureau of Canada – Mandatory auto insurance details by location
• Canada Pension Plan – Starting point to learn more about the CPP contributions and benefits
• Employment Insurance – Landing page for government backed employment insurance information