When you move to Canada, do you know what insurance you need and how to obtain it for your family and yourself? According to Quora, here’s how to buy insurance online while adjusting to your first hours, days, weeks, and months in Canada.
Well, the first step when entering Canada legally is –
Step 1: Go to Service Canada and get a social insurance number.
Step 2: Apply for a provincial medical card.
Step 3: Set up a bank account with a local bank.
Step 4: Arrange for a Health Canada Medical Exam
Once you take care of the important steps above, you want to plan for the unexpected. What does unexpected mean? Well, you or your family could deal with many issues such as getting sick, an accident, or even losing a job. Having insurance will protect you from the unexpected and ensure that you and your family have peace of mind.
Real Stories of Canadians Without Insurance
These are real stories of tragedy experienced by Canadians who did not have insurance, along with the consequences that followed.
Maki Ueyema and her husband moved to Toronto from India in September 2010. Since Ontario’s health coverage required a three-month waiting period, Maki, who was three months pregnant, was uninsured.
At five months, she went into premature labor with twins and needed an emergency C-section, resulting in a $22,000 medical bill. This illustrates the potential consequences of not having health insurance.
If Maki had health insurance, she would have been covered for most or all of her premature labor bills. If Maki and her husband had planned for this, it would take the financial pressure and stress away and would save the new family lots of money.
Especially when you and your family are new to a country, you may not have a lot, so if you think you will have kids or are going to have kids, getting health insurance will protect your finances and newborns.
Maki’s case is not unique, and many immigrants who land in Canada pay taxes right away but don’t think of getting insurance because they don’t think anything bad will happen to them or their families.
According to the National Library of Medicine, Canada brings in 250,000 immigrants a year, and a portion of them go to Quebec, Ontario, and British Columbia. Despite a lovely Canadian greeting and welcome, many immigrants have to wait or put it off because they are too busy getting acclimated to the society and forget about the important things.
In this blog, with someone with previous experience working in the insurance industry, I will share with you the tips and tricks you need to look out for and pay close attention to ensure you and your family are protected from the unexpected.
Insurance Guide for New Immigrants in Canada
When new immigrants arrive in Canada, securing appropriate insurance coverage is essential for their well-being and financial security. Follow these steps when considering health, auto, life, and other insurance types:
1. Health Insurance:
Provincial Health Coverage: Most provinces, including Ontario, impose a waiting period (up to three months) before new residents are eligible for provincial health insurance. During this time, it’s crucial to have private health insurance to cover potential medical expenses.
Private health insurance: To bridge the gap during the waiting period, consider purchasing private health insurance. Providers like HealthQuotes.ca offer coverage options tailored for visitors to Canada, immigrants, foreign students, and foreign workers.
2. Auto Insurance:
Mandatory coverage: Auto insurance is mandatory in Canada. New immigrants planning to drive should obtain auto insurance before operating a vehicle. It’s advisable to contact insurance providers to understand the coverage options available.
3. Life Insurance:
Assessing Needs: Evaluate your family’s financial needs and consider obtaining life insurance to provide financial security. Consulting with licensed insurance brokers can help determine the most suitable coverage.
4. Other Insurance:
Home or tenant insurance: Protect your residences and belongings by securing appropriate insurance coverage.
Travel Insurance: If you plan to travel, consider obtaining travel insurance to cover unexpected events.
General Recommendations:
Consult Licensed Brokers: Engage with licensed insurance brokers to explore various insurance products and receive personalized advice.
Compare Quotes: Utilize online platforms to compare insurance quotes from multiple providers, ensuring you select the best coverage for your needs.
Source: insurance-canada.ca
Avoiding Insurance Scams
Since you’re new to Canada, scammers think you don’t know the system, so they target immigrants. Let’s look at the dos and don’ts when buying insurance online or offline:
| Do’s | Don’ts |
|---|---|
| Make an informed decision—Choose based on your needs, not just because a friend has it. | Don’t pick based on friends’ choices—Their needs may be different from yours. |
| Pick a licensed broker—Ensure they have a solid reputation in Canada. | Avoid unlicensed or inexperienced brokers—They may not follow regulations. |
| Choose reputable companies—Opt for trusted names like Desjardins, Allstate, or Cooperators. | Don’t rely on unknown insurers—They might not have the stability or support you need. |
| Ask about coverage details—Know exactly what you’re paying for. | Never assume your broker knows what you need—Always clarify details. |
| Check reviews & testimonials—See how others rate their experience. | Avoid falling for hype—If an offer seems too good to be true, it probably is. |
| Ensure easy account access—Set it up for family use when needed. | Don’t keep accounts in one name only—Ensure a trusted family member has access. |
Red Flags of False Insurance Brokers
1. Unlicensed Brokers: Verify the broker’s license status by reaching out to the provincial insurance regulatory body.
2. Too-Good-To-Be-True Quotes: If an insurance quote is significantly lower than others, it may be fraudulent.
3. Pressure Tactics: Con artists might coerce you into registering right away before you have a chance to go over the specifics of the policy.
4. No Physical Office or Contact Details: An independent verification of a reputable insurance company’s registered business address and contact details is required.
5. Requests for Odd Payment Methods: Steer clear of brokers who insist on wire transfers, gift cards, or cash-only payments. Ways to Guard Against Insurance Fraud.
6. Check the credentials of the broker: Consult Ontario’s Financial Services Regulatory Authority (FSRA) or a comparable organization.
Tips When You Buy Insurance Online
1. Verify Broker Credentials: To find out if a broker is licensed, contact the Financial Services Regulatory Authority (FSRA) in Ontario or the comparable body in your province.
2. Request Written Documentation: Prior to signing, make sure you have a written policy document and have read it.
3. Speak with the Insurance Company Directly: Before sending any money, give the insurance company a call to confirm the broker and the specifics of the policy.
4. Make Use of Reputable Insurance Comparison Websites: Sites like beatmyinsurance.com let you compare multiple quotes anonymously, save time, and get the best deal, all for free!
5. Report Suspicious Activity: Notify your local consumer protection organization or the Insurance Bureau of Canada (IBC) if you believe there has been fraud.
RCMP Issues Alert on Life Insurance Scam
The RCMP is alerting the public about a new life insurance policy scam on March 5, 2025.
The public is being alerted by the New Brunswick RCMP to a new scam involving life insurance policies that is presently going on in the province.
According to police, scammers use obituaries to gather information before contacting a deceased person’s family a few months later to inform them of a payout from a life insurance policy. Scammers frequently use a well-known life insurance company and a common first name to identify themselves, then tell the relative that they are the beneficiary.
The scammer will use the details in the obituary to obtain more personal information. Once they acquire personal data, they can use it to perpetrate additional frauds. For instance, a scammer can use someone else’s name and personal information to fabricate identity documents and apply for credit.
Aviva Insurance fraud: Beware of ghost brokers selling fake insurance.
Introducing Jill*. Jill needed auto insurance after buying a new vehicle, so he hopped on the internet to buy insurance online.
Fred* was the first person she came across on Google. Fred claimed to sell insurance at a “really good price” in his social media advertisements. Jill made a call to Fred to buy auto insurance. Fred questioned her about her driving history and other personal details. Jill consented to use an electronic fund transfer to pay Fred each month.
Jill was involved in an automobile accident a few months later. When Jill called what she thought was her insurance company, they informed her that they did not have a record of her in their database. “How could this be?” Jill asked herself, “I pay my insurance premiums on time every month.” Unfortunately, it appears that a “ghost broker” has deceived Jill.
This type of fraud can leave you without insurance, cost you hundreds or thousands of dollars, and put you in legal jeopardy.
For instance, in Canada, it is mandatory for vehicles to be insured, and car owners are required to have liability insurance; failing to do so can lead to serious legal consequences.
Similarly, mortgage lenders often mandate that homeowners maintain home insurance to ensure that their property is fully protected and their home equity is safeguarded in case of a loss.
Ghost brokers may also issue fake insurance documents that look real and legitimate. These fraudulent documents can include a policy and a “pink slip,” which is also referred to as a liability slip. These slips contain your name, mailing address, vehicle details, insurance company, and policy information. Unfortunately, these insurance slips can be easily forged and counterfeited.
Avisa Shares Tips to Avoid Insurance Scams
How can you protect yourself from fake insurance coverage?
When purchasing auto, home, or other insurance, it is important to speak with an insurance professional who is properly licensed and qualified to sell insurance. Only buy insurance online from a brokerage or agent you trust. Otherwise, you may fall victim to insurance fraud.
To confirm a specific insurance broker’s license status, please refer to the licensing body within your province. Often the website will have a search function where you can confirm a specific broker’s status.
You can also ask the broker or agent for his or her license number and cross-reference it with the licensing body’s website. Only buy insurance online from a licensed broker, this help ensure that your auto or home will be covered in the case of a loss.
If you suspect anyone of ghost brokering or you have fallen victim to a ghost broker yourself, report it right away to your local police and the Insurance Bureau of Canada.
rAutos Caught in Insurance Scam on Reddit
A user took it to Reddit to share his experience on auto car insurance:
“A car struck my 1989 Jetta coupe, my most valuable possession, two months ago. I was just going about my business on the freeway when a car rear-ended me, which was extremely annoying. This car is very rare, very clean, and very important to me. It could have been worse, but it wouldn’t have been more annoying. The officer who struck me concluded that the other driver was at fault, and the police report reflected this determination. The insurance company wants to declare my car a total loss and give me $700 for it, even though I have a quote of
$3500 to repair and pull my frame and fix the dent. HOW IS IT WORKING? I’m furious, heartbroken, and frustrated. All I want is my car.”
Key Takeaways
Lastly, here are the key takeaways from this blog you should take away as a newcomer to Canada when looking to buy insurance online.
Securing the right insurance is essential for new immigrants in Canada to protect themselves and their families from unexpected financial burdens. The initial steps upon arrival include obtaining a social insurance number, applying for provincial health coverage, and setting up financial accounts.
Insurance types to consider
Health Insurance: Provincial health plans may have waiting periods, making private insurance necessary in the interim.
Auto Insurance: Mandatory before driving in Canada.
Life Insurance: Provides financial security for dependents.
Home/Tenant Insurance: Protects against property damage or theft.
Buy Insurance Online Safely: Work with licensed brokers, compare quotes, and verify policy details to avoid scams.
Fraudulent brokers, ghost insurance policies, and pressure tactics are common red flags. Always confirm a broker’s credentials, request written documentation, and report suspicious activity to consumer protection agencies.
BeatMyInsurance.com makes the process easier by allowing you to compare multiple quotes while staying anonymous until you accept an offer—saving both time and protecting your identity.
By taking proactive steps and remaining vigilant, new immigrants can navigate Canada’s insurance system with confidence, ensuring their financial stability and peace of mind.
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