There’s a type of insurance for everything. After all, you need to protect various types of property in your life, so why wouldn’t you have insurance? From car insurance to home insurance, there’s something for everyone. Some types of insurance are mandatory, and others are not. However, finding out the type of insurance you need is essential when making a purchase because it can be a significant upfront investment, but it is worth it in the end.
How do you get insurance, though? Shopping around when you’re unfamiliar with insurance policies can be overwhelming. However, by being proactive and working with an insurance broker, you won’t have to worry about a thing. So, let’s get into it! How do you purchase insurance, and how can a company like BrokerLink help you out? Let’s talk about it.
Insurance basics
What is insurance? Insurance is a way of getting compensated in the event of an incident that causes damages. This can range from property damage to medical expenses associated with a car accident. Insurance is provided by a company that you pay on a monthly or annual basis to keep your policy in place.
Where to purchase insurance
Purchasing insurance is like having a safety net if something goes wrong. However, finding a provider is often the most difficult part. Where can you buy an insurance policy? Let’s go over your potential options:
Insurance broker
Using an insurance broker to find your car or home insurance provider is the best way to go. What is an insurance broker, and what do they do? An insurance broker consists of agents who make finding insurance simple. Your insurance agent will research various insurance companies in the area to find a policy at the most affordable rate. After shopping around, your insurance provider will provide you with quotes and coverage options to let you choose a company.
Insurance company
Your other option is to go directly to an insurance company to purchase a policy. If you would rather speak with potential insurance companies directly, you can do the research on your own. Calling around and visiting different companies throughout the area can give you great insights into local policies. It will also give you an opportunity to discuss your insurance needs with a company before making a commitment. After all, you will be paying the insurance company directly.
In the end, it doesn’t matter where you buy your insurance. The most important part is having an insurance policy that works for you. You can purchase insurance policies over the phone, online, or in person. You should also keep in mind that bundling your insurance policies with the same company will get you a discount. This might also be the case if you apply online or have a good credit score.
Choosing an insurance broker or company
Before choosing an insurance company, you should get some more details about them. It will help you ensure they are qualified and are legally able to provide you with the insurance policies you need. Use questions from the list below to help narrow things down:
- If they can provide references from past clients
- If they have proper training and qualifications
- If they have successfully completed the Life Licence Qualification Program when buying life insurance
- If they are part of a professional association (e.g. Advocis, the Financial Advisors Association of Canada, the Insurance Brokers Association of Canada)
- Amount of time they’ve been in business
- Types of services available after selling you a policy
When choosing an insurance company, you have to be vigilant. It will allow you to find someone who is qualified to provide you with the services you need. Not having insurance can lead to financial and legal repercussions. The right insurance policy will offer you the coverage you need to protect yourself or your property if an incident occurs. Now that you have insurance, let’s find out how your insurance policy determines your rates.
How insurance companies determine your rates
Your insurance rates will vary depending on a plethora of factors. The costs of your insurance rates are called premiums, and they can fluctuate over time. However, there are a few things your insurance company will consider when determining your rates, including:
- Age
- Sex
- Medical history when determining life insurance or disability insurance
- Credit history
- Previous claims made
- Amount of coverage you are seeking
Before deciding if they want to insure, companies consider the risks. In other words, your insurance company will see what coverage you are eligible for before assigning a policy. This is called the underwriting process. The process determines the following:
- The amount of coverage the insurance company will provide
- Excluded conditions when applicable
- How much money you will pay
An example is your insurance company asking you to prove you are in good health before approving you for life and health insurance. This might require completing a medical questionnaire or, in other cases, having you undergo an exam. The purpose is to ensure insurability.
Even if you are applying for home or auto insurance, you will have to complete a questionnaire. You must be honest because it’s the only way to cover what you need. Inaccurate or dishonest answers have serious consequences, including:
- Cancelling an insurance policy and having claims refused in the future
- Being unable to receive insurance from almost any company in the future
You should always strive to pay your insurance company on time and give honest answers when purchasing a new policy. It will prevent issues with finding insurance in the future and allow you to retain your policy for even longer. Next, we’re going to get into what you have to pay for when you purchase an insurance policy.
Paying for insurance
When it comes to paying for your insurance, you will be dealing with the previously mentioned premiums and a deductible if you have to make a claim. Let us break down the differences between premiums and deductibles below:
Premium
Your premium is the amount you pay to retain your insurance policy. You pay this to your insurance company on an annual or monthly basis, and the amount you pay will vary depending on previously mentioned factors.
Deductible
If you have to make an insurance claim, the deductible is the amount you pay out of pocket. A higher deductible can reduce your insurance rates because the company will not have to provide as much coverage.
In Canada, it’s important to be honest when applying for an insurance policy. It allows you to pay a premium that will cover if something ever happens. After all, it’s better to be safe rather than sorry. Next, we will review how you can keep your insurance policy in place in the long term.
Looking for reliable insurance coverage tailored to your unique needs? Contact BrokerLink today for a comprehensive quote on various insurance options. Whether it's auto, home, business, or life insurance, our experienced brokers are here to help you find the best policies at competitive rates. Don't wait—reach out to BrokerLink now and ensure you and your assets are well-protected!
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Keeping your insurance policy
Maintaining your insurance is essential. After all, it’s your one form of protection from having to pay for things out of pocket. Let’s find out how you can keep an insurance policy in place for years to come below:
Pay your insurance premiums before the due date
When you first purchase an insurance policy, you will find how much coverage costs. Insurance payments are called premiums. You can choose to pay these fees annually or on a monthly basis. When you don’t pay for these on time, your insurance company will cancel your policy.
Losing coverage isn’t good because it can make it harder to find coverage from other insurance companies in the future. It can also cause you to pay more once you find a new company. Paying on time can save you money over time and will encourage your company to insure you for even longer. You don’t want your insurance policy to end before it should
Tell your insurance company if anything changes
Your insurance company is there to compensate you when you get into various situations. That’s why you need to let them know as soon as possible if anything changes. After all, there are many parts to an insurance policy.
This will vary depending on the type of insurance coverage you are talking about. For example, your car insurance provider has to know if you commit traffic violations or when another driver uses your car. In the case of life insurance, you should notify your insurance provider if you are dealing with a medical situation or illness.
It’s important for insurance companies to know about these things because it can potentially save you money. For example, if you are working remotely or retiring, you can save money on your car insurance policy.
Types of insurance you can purchase in Canada
There are many types of insurance in Canada. Each one has unique policies that will allow you to protect yourself and your property from future damages. Whether you are getting car insurance or another type of insurance, you will reap their benefits. Let’s discuss each one and who will require each service. Here are the most common types of insurance available across the country:
Car insurance
Car insurance is mandatory across Canada. Purchasing your first car insurance policy or updating your car insurance policy can be an exciting yet nerve-wracking experience. Let us ease your mind by explaining a little more about the purpose of auto insurance. There are four main types of car insurance policies, and we explain each one below:
Third party liability coverage
This car insurance policy covers accidental injuries or property damages, as well as medical expenses or lost wages. It also helps pay for legal defence and court fees if needed after a car accident.
Collision coverage
You will use this auto insurance policy if you get into a collision with another driver or object. It will also help you in a hit-and-run accident.
Comprehensive coverage
Car insurance isn’t just for accidents. A comprehensive auto insurance policy can cover expenses associated with theft, vandalism, fire and water damage.
Accident forgiveness coverage
Getting into your first at-fault accident can be overwhelming and can raise your insurance premiums. However, accident forgiveness coverage stops your insurance rates from going up when you get into your first one.
However, you should keep in mind that car insurance will not cover other vehicles. You will have to purchase separate insurance policies for your boat, trailer or RV. They all have these types of coverage, but you have to pay for them separately. These are not considered changes to your car insurance policy. As mentioned earlier, bundling can lead to great savings.
Home insurance
Your home is your sanctuary; you should protect it at all costs. Many things, including weather and other unexpected events, can damage it. That’s where home insurance can help you out. Like its counterparts, there are multiple types of home insurance available. Let’s find out what they are and how they can protect your home from perils. Common home insurance policies include:
Basic
The most standard home insurance policies protect your home from events like fire, lightning, wind storms and hail. Review your policy to see what coverage you have.
Broad
Outside of elemental protection, home insurance can cover a couple more things, including damage, theft, and vandalism. It also compensates you for unexpected circumstances like burst pipes.
Comprehensive
Think of comprehensive home insurance as the full package. It covers everything that’s been listed already. Ask your insurance company what this policy can do for you.
Like other insurance products, home insurance has various types of coverage. Consider checking your home insurance policy from time to time. However, this type of coverage is not mandatory by law in Canada, but you will likely have it anyway. That’s because banks and lenders usually require you to have home insurance before approving you for a mortgage loan.
Business insurance
Owning a business is not only a lot of work, but it’s also a huge investment. That’s why you should have some form of business insurance. It will allow you to recoup your income if something were to happen that would jeopardize your business. Business owners should consider the following types of business insurance coverage policies:
Property coverage
If you have a physical storefront or office location, you should opt for property coverage. Maintaining a building or even a small space can be difficult. That’s why if an event like a fire or flood happens, you’ll want insurance.
General liability
Having general liability insurance coverage will protect your business if someone takes legal action against your business. It pays for legal fees if someone sues you for injuries or property damage.
Medical payments/workers compensation
Health expenses can add up, especially if someone gets injured while working for your company. This policy will cover expenses such as medical bills and lost wages.
Business income coverage
If someone breaks into your business or some other type of hazard prevents you from running your business on a regular basis, you can benefit from this coverage. It will give you money to make up for the income you lost during the closure.
Commercial Auto Coverage
If you drive a company vehicle, you will need commercial auto insurance. It covers financial losses associated with bodily injury or property damage caused by a company vehicle.
Transit coverage
When you sell physical products, you are eligible for transit insurance coverage service. Basically, it provides payment if your products disappear during the shipment process before they arrive at your business.
If you own a business, you’re going to claim some point or another. However, you never know what it will cost. Update your business insurance policy as necessary and speak to an insurance advisor to see if you are eligible for these benefits. Like home and car insurance, you will use this type of insurance fairly often as a business owner.
Life insurance
Life insurance is never something you want to talk about or go get a quote online for. However, it’s important to save those around you the financial burden if the inevitable were to happen. You never know when life will change, which is why you should be prepared. With a good life insurance policy in place, your dependents won’t have to worry about funeral and other expenses when you pass. Common life insurance policies include:
Term life insurance
Flexible and affordable, term life insurance provides coverage during the peak years of risk and activity while being completely renewable. It pays a tax-free benefit to your identified beneficiaries if you die while the policy is in effect.
Whole life and permanent life insurance
Choosing whole life insurance provides coverage for your entire life. The difference is a guaranteed face amount, premiums and surrender values. You can adapt this coverage to suit your budget and pay for it at the times you desire.
Key person insurance for business
If the owner of a business passes away, there needs to be a plan. That’s where key person insurance comes into play. Before they pass, a business owner can designate someone to be the beneficiary of the business and to receive a tax-free benefit that must be used to train new workers during financial hardship.
Buy/sell insurance for business owners
When you pass, you might wonder where your business goes, but this can also be helpful when planning for a loss or disability of a partner. You can make it so the other partner has to purchase the share or sell the business.
Life insurance coverage has many advantages and is helpful, especially if you don’t have a large amount of savings either in a personal or business account. However, you might know that life insurance policies can come into effect when someone is still alive. Critical illness insurance helps support you when you lose wages or accumulate additional costs due to a medical condition altering your life. If an injury, illness, or both cause you to have a disability, this type of disability insurance can compensate you for time off work.
Health insurance
Whether you have a critical illness or not, you should buy insurance, specifically health insurance. Having health insurance will provide the right coverage in the event that you end up in an accident or develop a critical illness. There are multiple types of health insurance that can help you in these situations, such as:
Disability insurance
Accidents happen, which is why you should get an insurance quote for disability insurance. Losing limbs, getting sick, having a chronic condition, and other events can cause you to miss work. Disability insurance will be provided monthly until you retire to make up for the time you will miss at work.
Critical illness insurance
If you get a life-threatening diagnosis, opt for critical illness insurance to protect you and your loved ones. It will compensate you for the financial losses you will suffer, such as lost wages. It gives you a one-time tax-free benefit that will pay for all the expenses and bills accumulated when you were unable to work.
Extended health and dental coverage
In Canada, we benefit from universal healthcare that includes regular check-ups, hospitalizations, chronic condition management and critical illness treatment. However, dental and vision care, prescription drugs and other treatments are not covered, which is why you need extended health and dental coverage.
You should buy health insurance for your own protection. Life is unpredictable, and you never know what will happen, so you should always be prepared. Even in Canada where healthcare is universal, you still have to pay for dental care and vision care. Why have the extra expenses added to your bills when you don’t have to?
Contact BrokerLink for all your insurance needs today!
When you buy insurance, your best bet is to ask an experienced broker for help. The BrokerLink Brokers are here to help you with all your needs. Whether you need home and car insurance or any other type of insurance, we will work with you to find the right policy at an affordable rate.
What are you waiting for? Contact BrokerLink today to find an insurance policy that suits your needs today. We also find insurance companies that offer discounts for purchasing multiple policies. We’re here to help every step of the way.
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