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Car insurance for military personnel and veterans in Canada can differ from standard policies due to some specialized offerings and discounts. Military personnel and veterans have made significant contributions to the country, and in recognition of their service, many insurance companies provide tailored benefits. If you’re a member of the Canadian Armed Forces (CAF) or a veteran, here are some things you should be aware of:

  1. Discounts: Many insurance providers offer discounts to military personnel and veterans. These discounts can vary by province and insurance provider, but they can result in significant savings.
  2. Location-Based Discounts: Members of the CAF might be posted in various locations, some of which are considered less risky in terms of accidents. Thus, the location of your posting can affect your premium.
  3. Deployment Considerations: If you’re deployed and your vehicle will be stored and not driven for an extended period, some insurance providers may offer reduced rates. This is because the risk of an accident occurring is minimal when the vehicle is not in use.
  4. Specialized Providers: There are insurance providers in Canada that specifically cater to military personnel and veterans. For example, The Personal Insurance Company has been providing home and auto insurance to members of the Canadian military community for over 30 years.
  5. Coverage During Relocation: If you’re relocated within Canada due to your military service, ensure that your policy covers you adequately during the move. Some policies may have provisions that cater to such situations.
  6. Claims Service: Some insurers offer priority claims service for military personnel, recognizing the unique challenges and time constraints that they may face.
  7. Other Benefits: Some providers might offer additional perks like emergency roadside assistance or flexibility in policy terms for military personnel.
  8. Veterans Affairs Canada (VAC): Veterans should check with Veterans Affairs Canada to see if there are any specific programs or partnerships offering insurance benefits or discounts.
  9. Shop Around: Just like with any insurance policy, it’s a good idea to shop around and compare quotes. While many providers offer military discounts, the amount and terms can vary.
  10. Ask Questions: When discussing a policy with an agent or representative, ensure you disclose your military or veteran status and ask about any special provisions, discounts, or benefits that might apply to you.

 

Auto Insurance Cost for Military Personnel & Veterans in Canada

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Auto insurance rates for military personnel and veterans in Canada can vary based on factors such as the driver’s age, driving record, and location. Here is an example of what a military personnel or veteran might pay for auto insurance per year and per month, based on a sample driver profile, in 10 major cities across three provinces.

Driver Profile:

  • 35-year-old military personnel or veteran
  • No accidents or tickets in the past five years
  • Owns a 2018 Toyota Camry LE
  • Drives an average of 12,000 km per year
  • Purchases a standard auto insurance policy with $1 million in liability coverage and a $1,000 deductible

Ontario:

  1. Toronto: $1,450 per year or $121 per month
  2. Ottawa: $1,200 per year or $100 per month
  3. Mississauga: $1,350 per year or $113 per month
  4. Brampton: $1,500 per year or $125 per month
  5. Hamilton: $1,250 per year or $104 per month
  6. London: $1,100 per year or $92 per month
  7. Markham: $1,550 per year or $129 per month
  8. Vaughan: $1,450 per year or $121 per month
  9. Kitchener: $1,100 per year or $92 per month
  10. Windsor: $950 per year or $79 per month

Alberta:

  1. Calgary: $1,000 per year or $83 per month
  2. Edmonton: $950 per year or $79 per month
  3. Red Deer: $900 per year or $75 per month
  4. Lethbridge: $850 per year or $71 per month
  5. Fort McMurray: $1,150 per year or $96 per month
  6. Grande Prairie: $950 per year or $79 per month
  7. Medicine Hat: $850 per year or $71 per month
  8. Airdrie: $1,050 per year or $88 per month
  9. Spruce Grove: $1,000 per year or $83 per month
  10. Leduc: $900 per year or $75 per month

Quebec:

  1. Montreal: $1,100 per year or $92 per month
  2. Quebec City: $950 per year or $79 per month
  3. Laval: $1,000 per year or $83 per month
  4. Gatineau: $900 per year or $75 per month
  5. Longueuil: $1,000 per year or $83 per month
  6. Sherbrooke: $850 per year or $71 per month
  7. Saguenay: $800 per year or $67 per month
  8. Trois-Rivières: $850 per year or $71 per month
  9. Terrebonne: $1,100 per year or $92 per month
  10. Saint-Jean-sur-Richelieu: $850 per year or $71 per month

Please keep in mind that these are example rates for a specific driver profile and do not represent the exact cost that any given driver may pay. Actual insurance rates may vary depending on several individual factors. Additionally, insurance companies may offer specific discounts or benefits to military personnel and veterans, so it’s worth shopping around and comparing quotes from multiple providers.

List of car insurance companies in Canada that offer discounts to military personnel

Here’s a list of some companies that have been known to offer such discounts:

  1. The Personal Insurance Company: They have a long-standing relationship with the military community in Canada and offer specialized home and auto insurance.
  2. TD Insurance: They’ve been known to offer group insurance rates and benefits to certain military associations and their members.
  3. Geico: While primarily a U.S.-based company, Geico offers services in Canada and has military discounts in the U.S. It’s worth inquiring if similar offerings are available for Canadian military personnel.
  4. Belairdirect: In the past, they have offered special programs for military personnel, but it’s always best to check directly.
  5. Intact Insurance: As one of the largest insurance providers in Canada, it’s worth inquiring about any potential military-related discounts or programs.
  6. Desjardins Insurance: Given their presence and range of offerings, they might have programs or discounts tailored for military personnel.
  7. Aviva Canada: It’s another major player in the insurance market, and potential customers should inquire about military discounts.
  8. State Farm: Operating in Canada, they might have discounts or tailored services for military personnel, as they’ve done so in other markets.
  9. Johnson Insurance: They have been known to offer various discounts, and it’s possible that there are some for military personnel.

While some of these companies might offer discounts directly, others might do so through partnerships with military associations or groups. Always inquire directly with the insurance company and mention your military status. They’ll provide details on any current offerings or discounts available to you.

Additionally, when seeking discounts, it’s not just about the rate. Ensure that the coverage you’re getting is comprehensive and fits your needs. Always compare policies, services, and prices before making a decision.

Here are some of the potential benefits of car insurance for military members in Canada:

Military members often face unique challenges and circumstances, such as frequent relocations and deployments. Recognizing their valuable service, many insurance companies offer special benefits tailored to their needs. Here are some potential benefits of car insurance for military members in Canada:

  1. Discounted Premiums: One of the most direct benefits for military members is the possibility of receiving discounted rates on their car insurance premiums.
  2. Deployment Benefits: If a military member is deployed overseas and their car is not in use, some insurers may offer a reduced premium rate, acknowledging that the vehicle poses no risk on the road during this period.
  3. Flexible Payment Options: Recognizing the unique financial challenges faced by military members, some insurers may offer more flexible payment options or grace periods.
  4. Location-Based Benefits: Since military members often relocate, some insurance providers offer seamless transitions in policies, ensuring continuous coverage even if moving between provinces.
  5. Comprehensive Coverage: Given the uncertainties of military life, insurers might provide comprehensive coverage options that cater to various needs, from collision damage to theft while stationed abroad.
  6. Priority Claims Service: Acknowledging the limited time and potential urgency, some insurers offer expedited claims processing for military members.
  7. Storage Coverage: If a military member has to store their vehicle due to a posting or deployment, some insurance policies offer specialized storage coverage.
  8. No Cancellation Fees: Recognizing the unpredictable nature of military postings and deployments, some insurance companies might waive cancellation fees for military members if they need to cancel their policy abruptly.
  9. Coverage During Relocation: During periods of relocation, there might be a transition phase where a military member is in between addresses. Some policies ensure continuous coverage during these transitions.
  10. Family Benefits: Understanding the challenges faced by military families, some insurance providers offer additional benefits or discounts for family members, ensuring they are well-protected while their loved one is serving.
  11. Specialized Customer Service: Some insurers may have dedicated customer service lines or representatives trained specifically to assist military members and understand their unique needs.
  12. Waived Deductibles: In certain cases, especially if a claim arises due to a service-related event, some insurers might consider waiving the deductible.

These benefits can greatly assist military members in managing their car insurance needs while serving. However, the availability of these benefits can vary among providers, so it’s essential to research and inquire directly with insurance companies about their specific offerings for military members.

Does the Canadian military pay for car insurance?

No, the Canadian military (Canadian Armed Forces, or CAF) does not typically pay for the car insurance of its members. Car insurance is considered a personal expense and is the responsibility of the individual service member to arrange and pay for.

However, there are some related benefits and considerations:

  1. Discounts: As previously mentioned, many insurance providers offer special rates or discounts to military personnel, recognizing their service to the country.
  2. Relocation Costs: While the CAF doesn’t cover car insurance, they have a comprehensive relocation program that covers many expenses related to postings and moves. This program can include costs like travel, shipping belongings, and even house-hunting trips, depending on the specifics of the move.
  3. Deployment and Storage: If a service member is deployed and chooses to store their vehicle, some costs related to storage might be covered or subsidized under certain conditions. This doesn’t include the insurance itself but rather the costs associated with safe storage.
  4. Financial Assistance: In exceptional circumstances, where a member faces financial hardship, there might be resources or programs within the CAF to assist, but this would be on a case-by-case basis and not specific to car insurance.

Service members are encouraged to inquire about any potential financial benefits, assistance, or resources available to them through the CAF, especially when facing significant life changes like deployments or relocations.

What kind of car insurance do members of the Canadian military need?

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Members of the Canadian military (Canadian Armed Forces, or CAF) need car insurance similar to any other Canadian citizen. However, due to the unique nature of their job, which may involve frequent relocations and deployments, there are certain considerations they should keep in mind. Here’s a breakdown:

  1. Mandatory Insurance:
    • Liability Insurance: Like all drivers in Canada, military members need to have at least the minimum amount of third-party liability insurance required by their province or territory. This coverage pays for damages or injuries they might cause to another person or their property in an accident.
    • Accident Benefits/Bodily Injury: This is mandatory in most provinces and covers the driver and their passengers in case of injury, regardless of who caused the accident.
  2. Optional Coverages:
    • Collision: Covers damages to the insured’s vehicle resulting from a collision with another vehicle or object.
    • Comprehensive: Protects against damages not caused by a collision, such as theft, vandalism, fire, or natural disasters.
    • Uninsured Motorist: Covers the driver in case they’re involved in an accident with an uninsured driver or in a hit-and-run.
  3. Military-Specific Considerations:
    • Deployment: If being deployed and not using the vehicle for an extended period, they might consider reducing their coverage to just comprehensive, which would cover their vehicle against theft or damage while it’s stored.
    • Relocation: For military members who get relocated frequently, it’s essential to notify the insurance provider when moving, especially between provinces, as insurance requirements might change. Some providers offer policies that simplify this process.
    • Storage Insurance: If the vehicle is being stored during deployment, some providers offer storage insurance which can reduce premiums since the car isn’t being driven.
  4. Discounts: Always inquire about military discounts or any special considerations given to members of the CAF.
  5. Licensing: While insurance is one aspect, military personnel also need to ensure that their driver’s license remains valid, especially if they’re out of their home province or country for extended periods. Some provinces have provisions to extend the validity of licenses for military personnel stationed elsewhere.

Who qualifies for a discounted military car insurance policy?

Insurance companies that offer discounted military car insurance policies generally provide them to the following groups:

  1. Active Duty Military Personnel: Individuals who are currently serving in the armed forces, whether in the regular force or the reserves, are typically eligible for military discounts.
  2. Veterans: Those who have previously served in the military and have been honorably discharged often qualify for military discounts. The exact definitions of “veteran” can vary among insurance providers, so it’s essential to check the specific criteria.
  3. National Guard and Reservists: Members of the National Guard or reserves, even if not on active duty, might also be eligible for military discounts with some insurers.
  4. Military Officers: Some insurance providers might extend special discounts to commissioned officers or individuals in specific leadership positions within the military.
  5. Military Associations and Affiliates: Membership in certain military associations, groups, or clubs might also make one eligible for group discounts with certain insurance providers.
  6. Family Members: In some cases, immediate family members (spouses, children) of active-duty personnel, veterans, or other qualifying military members might also be eligible for military discounts or special rates.
  7. Cadets: Some insurance providers might extend discounts to individuals enrolled in military academies or ROTC (Reserve Officers’ Training Corps) programs, although this might be more common in the U.S. than in Canada.
  8. Department of Defense Employees: While more common in the U.S., some insurance providers might offer discounts to civilian employees of defense-related departments or organizations.

Not all insurance companies offer military discounts, and among those that do, the criteria and amount of the discount can vary. Eligibility requirements, as well as the magnitude of the discount, can differ based on the insurance provider, region, and other factors.

If you believe you might qualify for a military discount, it’s always a good idea to inquire directly with the insurance company. They can provide specifics on eligibility criteria and any necessary documentation or verification needed.

How can members of the military save on car insurance?

Members of the Canadian military (Canadian Armed Forces, or CAF) can employ several strategies to save on car insurance, given their unique circumstances. Here are some tips:

  1. Military Discounts: Always inquire about military-specific discounts. Some insurance companies offer special rates to military personnel and veterans in recognition of their service.
  2. Bundle Insurance: Consider bundling your car insurance with other policies, such as home or renters’ insurance. Many providers offer discounts for having multiple policies with them.
  3. Deployment Reduction: If you’re being deployed and your vehicle will be stored and not driven for an extended period, inform your insurance provider. They may offer a reduced rate or allow you to temporarily drop certain coverages.
  4. Defensive Driving Courses: Some insurance companies offer discounts for completing defensive driving courses. These courses can help reinforce safe driving habits, which can lead to fewer claims and potentially lower premiums.
  5. Increase Deductibles: If you can afford a higher out-of-pocket cost in the event of a claim, consider increasing your deductible. This will lower your premium.
  6. Maintain a Clean Driving Record: Avoiding traffic violations and accidents can help you qualify for safe driver discounts and keep your premiums low.
  7. Ask About Other Discounts: Beyond military discounts, insurance companies might offer savings for things like multi-car policies, being a long-term customer, or having safety features in your vehicle.
  8. Review Your Coverage: Regularly review your policy to ensure you aren’t paying for unnecessary coverage. For example, if you have an older vehicle, you might consider dropping collision or comprehensive coverage.
  9. Shop Around: Insurance rates can vary significantly between providers. Regularly compare rates and policies from different insurers to ensure you’re getting the best deal.
  10. Relocation Considerations: Military personnel often relocate. Each province in Canada has different insurance rates and requirements. If you’re moving, research insurance costs in that province and adjust your coverage accordingly.
  11. Limit Vehicle Use: Some providers offer discounts for vehicles that are driven below a certain number of kilometers annually. If you’re deployed or not using your vehicle often, this could lead to savings.
  12. Group Insurance: Some military associations or organizations might have partnerships with insurance providers for group rates. It’s worth exploring these options.
  13. Loyalty and Renewal Discounts: Some insurers provide discounts for long-term customers. Staying with the same insurer for several years might have its advantages, but it’s still a good idea to compare rates periodically.

By being proactive and understanding the specific advantages available to military personnel, members of the CAF can save on car insurance while ensuring they have the coverage they need.

About the Author: Valerie D. Hahn

Valerie is an insurance editor, journalist, and business professional at RateLab. She has more than 15 years of experience in personal financial products. She strives to educate readers and ensure that they are properly protected.

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