Insurance in Canada is shaped by two things that differ from most other countries: it is regulated province by province, and in four provinces the government runs all or part of car insurance. Which coverage you are legally required to carry, who you can buy it from and where you complain if a claim goes wrong all depend on where you live. This overview sets out which coverage is mandatory, which most households carry, how regulation works in each province, and where to find our guides to each type of insurance.
What coverage is mandatory, and what most households carry
Only car insurance is required by law everywhere in Canada. The rest is required by a lender or landlord, or chosen based on what a household could not afford to lose.
| Insurance type | Required? | Who typically carries it |
|---|---|---|
| Car insurance | Yes, in every province (minimum third-party liability of $200,000 in most provinces, $500,000 in Manitoba and Nova Scotia, and $50,000 for property damage in Quebec) | Anyone who owns or drives a vehicle |
| Home insurance | Not by law, but required by mortgage lenders | Homeowners; flood and earthquake are usually separate |
| Mortgage default insurance | Required when the down payment is under 20% | Buyers with a smaller down payment |
| Tenant insurance | Not by law, but often required by landlords | Renters |
| Life insurance | No | Anyone whose income supports dependants |
| Disability insurance | No | Working adults; replaces part of your income if you can’t work |
| Travel insurance | No | Anyone travelling outside Canada, since provincial plans pay little abroad |
| Critical illness insurance | No | A supplement for people without emergency savings |
Priorities also shift with life stage. Students and young adults usually start with tenant and car insurance; a first career adds disability and basic life coverage; marriage, a home and children raise life insurance needs; homeowners with growing assets add umbrella liability; and retirees review what they no longer need while travel medical coverage matters more.
How insurance is regulated in Canada
Insurance is regulated mainly by the provinces, and each province has its own regulator. The federal Office of the Superintendent of Financial Institutions (OSFI) also supervises federally regulated insurance companies.
| Province | Regulator |
|---|---|
| Ontario | FSRA (Financial Services Regulatory Authority) |
| British Columbia | BCFSA |
| Alberta | Alberta Superintendent of Insurance |
| Quebec | AMF (Autorité des marchés financiers) |
| Saskatchewan | FCAA |
| Manitoba | Financial Institutions Regulation Branch |
| Atlantic provinces | Each province’s own regulator (FCNB in New Brunswick) |
Two national ombudservices handle complaints once an insurer’s own process is exhausted: the General Insurance OmbudService (GIO) for home, auto and business insurance, and the OmbudService for Life and Health Insurance (OLHI) for life, health and disability insurance.
Car insurance is where provincial differences matter most. BC (ICBC), Saskatchewan (SGI) and Manitoba (MPI) have public auto insurers, and in Quebec the SAAQ covers bodily injury from car accidents alongside private insurers. Ontario, Alberta and the Atlantic provinces have private auto insurance markets. How that changes prices and coverage is explained province by province in the car insurance hub.
How insurance works
A policy is a contract: you pay a premium, and the insurer agrees to cover specific losses. The premium reflects your risk (age and health for life insurance, driving record and location for car insurance, rebuild cost and claims history for home insurance). A deductible is the part of each claim you pay yourself, and choosing a higher one lowers the premium; the trade-off is explained in insurance deductibles explained. Exclusions list what a policy does not cover and matter as much as what it does.
Four documents come with most policies: the policy wording (the full contract, including the exclusions), the declaration page (your coverage amounts, deductible, premium and policy period), endorsements (changes that add coverage such as sewer backup or earthquake, or modify terms), and the renewal notice, sent before the renewal date with the new premium. The renewal notice is the point to compare prices; the reasons premiums rise are covered in why did my insurance premium go up.
You can buy through an independent broker who compares several insurers, a captive agent who sells one company’s products, directly from an insurer online, or through an employer’s group benefits plan, which often includes life, disability, extended health and dental coverage. The trade-offs are compared in insurance broker vs buying direct. When something goes wrong, the steps are in how to file an insurance claim.
Insurance guides by type
Car insurance
The car insurance hub covers how auto insurance works in each province, what drives the price and how to compare insurers.
- How car insurance works in Canada
- Average car insurance cost by province
- Best car insurance companies in Canada
- Collision vs comprehensive coverage
- What to do when your car is written off
Home and tenant insurance
The home insurance hub covers homeowner, condo and tenant policies, their costs by province and the companies that sell them.
- Average home insurance cost in Canada
- Best home insurance companies in Canada
- Condo insurance
- How tenant insurance works
- Best tenant insurance in Canada
Life, health and disability insurance
The life, health and disability insurance hub covers life insurance along with the coverage that protects your income and health.
- How life insurance works in Canada
- How much life insurance you need
- Term vs whole vs universal life insurance
- Disability insurance
- Critical illness insurance
- Health insurance and provincial coverage gaps
Travel, pet and other insurance
The travel, pet and other insurance hub covers coverage for specific situations, plus the guides on claims, deductibles and brokers that apply to every policy.
- Is travel insurance worth it?
- Best travel insurance in Canada
- Travel insurance for snowbirds
- Pet insurance
- Umbrella insurance
- What to do when a claim is denied
Related topics
- Personal finance: financial planning, estate planning and life stages
- Mortgages: mortgage default insurance and buying a home
- Credit cards: the travel and purchase insurance built into credit cards
Browse All Insurance Articles
Browse all 4 articles in this section.
Sources
The figures and rules on this page come from these sources, last checked against them on September 25, 2026. How we check facts.
- CMHC: Calculating GDS / TDS
- CMHC: CMHC Purchase
- CMHC: Home Start
- CMHC: CMHC Improvement
- Department of Finance Canada: Technical backgrounder mortgage insurance rules income proposals revised october 14 2016
- Department of Finance Canada: Government announces boldest mortgage reforms in decades to unlock homeownership for more canadians
- Department of Finance Canada: Straight switches and portfolio insurance
- Department of Finance Canada: Boldest mortgage reforms in decades come into force today
- Financial Consumer Agency of Canada: Down payment
- Financial Consumer Agency of Canada: Buying home
- OSFI: Minimum qualifying rate for uninsured mortgages
- OSFI: Final Revised Guideline B-20: Residential Mortgage Underwriting Practices and Procedures