Car and home insurance in Canada

Where you buy car insurance

• ✓Alberta, Ontario, Nova Scotia, New Brunswick, Newfoundland and Labrador, PEI and the territories: you buy from a private insurer, through an agent, a broker or directly.
• ✓British Columbia, Manitoba and Saskatchewan: you must buy the mandatory minimum from the government insurer (ICBC, MPI or SGI), and can buy extra coverage privately.
• ✓Québec: bodily injury coverage comes from the government insurer (SAAQ); property damage coverage is bought from a private insurer.

What sets your premium

Insurers weigh many factors. The main ones:

• ✓Your vehicle: make, model, year, safety features, repair costs and how often that model is stolen.
• ✓Your driving and insurance history: claims, convictions and driver training, plus that of other drivers on the policy.
• ✓How long you've been licensed, your age, and your licence class.
• ✓Where you live and how much you drive each year.
• ✓Whether the car is also used for business, and market conditions like repair costs, theft and fraud.

10 ways to pay less for car insurance

1. 1Shop around and compare quotes: the simplest way to save.
2. 2Raise your deductible: a higher deductible means a lower premium.
3. 3Drive less; carpool or take transit some days.
4. 4Drop collision coverage on an older car (your legal liability stays covered).
5. 5Keep a clean driving record.
6. 6Install an anti-theft system and ask about the discount.
7. 7Try a usage-based (telematics) program that prices your actual driving.
8. 8Compare insurance costs before you buy or lease a car.
9. 9Bundle home and auto and ask about multi-policy or loyalty discounts.
10. 10Review your limits, deductibles and coverages with your representative every renewal.

Home, condo and tenant insurance

Home insurance isn't required by law, but your mortgage lender will require it, and most condo boards and many landlords expect it. Homeowner policies cover the building, your belongings and your personal liability; condo policies cover your unit's improvements, belongings and liability on top of the building's master policy; tenant policies cover your belongings and liability.

Water damage claims can be expensive, and coverage for flooding from outside (overland water) or sewer backup is usually an add-on. Check that your policy includes it, especially if you have a finished basement.

Frequently asked questions