How to Buy Insurance Online

Purchasing insurance is one of the most important things that you can do to help protect yourself and your loved ones. Insurance is available to help cover you in all aspects of your life and it ensures that you are protected if the unexpected happens. Without proper and comprehensive insurance policies, you and your family may endure unnecessary financial hardships if disaster strikes.

What is insurance?

Insurance is a measure of protection that is supplied by an insurance provider. It is available to cover all different aspects of a person’s life and ensures that, in the event of any damage or loss, financial assistance will be given. Insurance companies charge a yearly premium, which is usually broken down into monthly payments. Some insurance, such as auto insurance, is mandatory by law in Canada, while other types, such as health insurance or life insurance are not.

Here is a table with some of the country’s most reputable insurance providers; click on any of their names to see more information about them!

What types of insurance are available to purchase online?

There are many different types of insurance policies available to Canadians and each one is designed to offer protection for a different aspect of your life. Some of the most common types of insurance available to purchase online are:

  • Automobile Insurance – Auto insurance is required, by law, throughout Canada. If you drive a car, that vehicle must be protected by automobile insurance. This type of insurance covers damage to your car and to others in the case of an accident and also covers bodily injury in the event that someone is hurt.
  • Health Insurance – Health insurance will provide protection in the event that you become sick. Dental, vision care, prescription drugs, physiotherapy, massage therapy and medical devices are just a few of the things usually covered by this type of insurance. 
  • Life Insurance – In the untimely event of your death, life insurance will pay out a pre-specified amount to your beneficiary that can be used to help pay off any remaining debt, funeral expenses or to help support them when you no longer can.
  • Travel Insurance – If you travel frequently then obtaining travel insurance can help to protect you against medical expenses, trip cancellation, trip interruption and lost, or stolen luggage when you are abroad.
  •  Identity Theft Protection – This type of insurance helps to protect against identity theft and will reimburse the holder for expenses that are incurred while trying to reclaim their identity.
  • Disability Insurance – In the event that you become sick or disabled and are unable to work, disability insurance will help to replace a certain percentage of your lost wages.
  • Pet Insurance – Pet insurance is becoming more and more popular in Canada. It is designed to help protect your dog or cat in the event that they become sick and require medical care. 
  • Home Insurance – In Canada, home insurance is not mandatory if you own your home in full, however most mortgage companies will require that you have valid and comprehensive house insurance in order to approve you for a mortgage. This type of insurance will protect against fire, and flood and will cover loss or damage of the contents of your home in the event of a disaster or theft.

What is the process for purchasing an insurance policy online?

Almost all insurance companies offer online insurance quotes and most will also offer the option of purchasing an insurance policy online. This is making the process of comparing different companies and obtaining the coverage that you require a much faster and easier task.

One of the quickest ways to compare different policies and companies is to search an insurance comparison website. These sites will ask you for some basic information regarding the insurance that you are interested in and will provide you with a list of valid and reliable Canadian insurance providers. They will also compare monthly premiums and deductibles as well as the features and coverage options that each plan offers.

Depending on the type of insurance that you are seeking you may need to have the following identification and documentation handy when filling out your online quote or application:

  • Auto Insurance – Make, model and VIN number of your vehicle, SIN number and a valid driver’s license.
  • Home Insurance – Your address, SIN number and mortgage company’s information.
  • Life, Health and Disability Insurance- Proof of identity and citizenship, workplace information and income statements, medical and health information. 
  • Travel Insurance – Date and location of travel and proof of identity.
  • Identity Theft Protection – SIN number and proof of identity.
  • Pet Insurance – Age and breed of your animal, proof of your identity and your Veterinarian’s contact information. 

Frequently asked questions about how to buy insurance online

How do I know if I need insurance?

If you drive a vehicle or mortgage a home, then insurance is mandatory. All other types of insurance will help to protect you from unexpected financial loss in the case of sickness, accidents or theft. Because our futures are all unknown, obtaining insurance to help keep ourselves and our families safe is always recommended.

How will I know which policy is right for me?

Different people will have different needs when it comes to choosing the right policy. Some important things to consider include:

  • What is being covered under the policy?
  • What criteria has to be met in order to make a claim?
  • How much money will be received if a claim is made?
  • What is the deductible amount?
  • How much is the premium and does this amount fit into my budget?
  • What are the exclusions in the policy?

Comparing different policies online will give you a good idea of which ones will best suit your individual requirements.

What is an insurance deductible?

A deductible is a pre-specified amount of your claim that you agree to pay before your insurance will pay. For example if your deductible amount is $200 and you make a claim for $1000, you are responsible for paying that deductible amount and your insurance company will pay the remaining $800. With most insurance companies, the higher the deductible, the lower the premium amount.

What is an insurance premium?

An insurance premium is the fee that is paid to purchase your insurance. This amount can be paid monthly, quarterly or yearly. The amount that you pay for your coverage is determined by the insurance company and is based upon how likely they think you are to make a claim. The higher risk you are deemed to be, the more expensive your premium amount.

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Amanda Leach

Fifteen years can be a long time to work in one industry, but not when you are doing something that you love. Amanda has enjoyed the freedom of working as a freelance writer for the majority of her career. She has successfully combined her passion and skill for writing while still enjoying a life filled with travel, learning and exciting new experiences. While she loves exploring all different types of writing, her PhD in Consumer Psychology has made her a sought after writer for marketing, business and technology fields. Amanda is a regular contributor to Smarter Loans.