Budget pressures leave Canadians considering cutting back on insurance – despite many not knowing what they’re putting at risk

TD Insurance survey finds 84% say they don’t fully understand their coverage, highlighting a major insurance confidence gap

Toronto, ON (Aug. 5, 2026) – As Canadians look for ways to manage rising costs, a new TD Insurance survey suggests some may be taking financial risks they don’t fully understand. One-third of Canadians say they would consider reducing their insurance coverage to save money, despite not fully understanding what their policies do and don’t cover.

Key findings from the survey:

• 33% of Canadians say they would consider reducing their insurance coverage to save money
• Gen Z (55%) is most likely to cut back on insurance to reduce pressure on budgets
• 62% aren’t confident their coverage would fully protect them in an unexpected situation
• 84% don’t fully understand what their insurance does and doesn’t cover

The findings point to a growing insurance confidence gap: Canadians are looking for ways to save money at a time when many don’t fully understand what their insurance covers or whether it would adequately protect them in an unexpected situation. While 85% of Canadians recognize the importance of insurance as a financial safeguard, half (50%) admit they don’t know what insurance coverage they currently have.

“With the cost of everyday essentials continuing to rise, it’s understandable that Canadians are taking a closer look at their household expenses,” said Kristen Gill, Vice President, General Insurance, TD Insurance. “When budgets are stretched, it’s natural to look for places to save, but before reducing insurance coverage, it’s important to understand what’s protected, and what isn’t to avoid surprises later.  Taking the time to review your coverage can help you make informed decisions, identify potential gaps and avoid costly surprises down the road.”

Affordability pressures are creating difficult trade-offs

Canadians continue to feel pressure from rising everyday costs. More than half (56%) worry that one unexpected expense could force them to make difficult financial choices, while seven in 10 (71%) report concerns that just one surprise expense could undo months of progress toward their savings goals.

The findings suggest Canadians are weighing two competing priorities: managing costs today while maintaining financial protection for tomorrow.

“Insurance isn’t only about protecting what you own today, it’s about being prepared when the unexpected happens,” added Gill. “Without the right coverage, an unexpected event could mean dipping into savings that were set aside for other goals. Reviewing your coverage regularly and asking questions can help ensure your protection reflects your current needs and gives you greater confidence in the coverage you have.

Younger Canadians may be particularly vulnerable

Gen Z shows a greater likelihood of reducing insurance coverage, while also expressing confusion and uncertainty:

• 55% say they would consider reducing coverage when budgets are tight
• 58% say they have been putting off reviewing their insurance
• 44% say insurance is confusing

This may leave younger Canadians particularly vulnerable, as they are both the most likely generation to consider reducing coverage and among the most likely to report confusion about insurance.

Helping Canadians make informed insurance decisions

Canadians should review their insurance coverage regularly or when there is life change like:

• Purchasing a home
• Moving
• Renovating a property
• Purchasing a vehicle
• Use of vehicles
• Starting a business
• Changes to household composition
• Marital status change
• Acquiring high-value belongings

Reviewing coverage can help ensure policies continue to reflect current needs and provide an opportunity to better understand available protection options.

Frequently Asked Questions (FAQ)

Why are Canadians considering reducing their insurance coverage?

According to the survey, affordability pressures continue to affect many households. Nearly three in 10 Canadians say they would be more likely to reduce insurance coverage when their budget is tight. At the same time, more than half worry that a single unexpected expense could force them to choose between necessities, highlighting the difficult financial trade-offs many Canadians are facing.

Why should I review my policy before reducing coverage?

Reducing coverage may lower premiums, but it can also leave you with less financial protection. Reviewing your policy with your insurer can help you understand the potential impact of coverage changes and explore other options that may help manage costs.

Is reducing insurance coverage a good way to save money?

Insurance needs vary from person to person. Before making changes, Canadians may want to review their coverage with their insurer to understand what is protected, what is not, and whether their current policy reflects their lifestyle and needs.

How often should Canadians review their insurance coverage?

A policy review is important whenever life changes occur, such as buying a home, moving, renovating, purchasing a vehicle, adding kids to your coverage, change use of driver, marriage, separation, retirement, starting a business, or adding valuable possessions to a household.

If Canadians are looking to save money, what can they do before reducing their insurance coverage?

Before reducing coverage, Canadians should review their policy and ask about available discounts and savings opportunities. Depending on their circumstances, savings may be available through bundling home and auto insurance, alumni or professional preferred rates, Claims Free Reward, multi-vehicle discounts, low mileage, or hybrid and electric vehicle discounts. Taking the time to understand available options can help Canadians manage costs while maintaining the protection that’s right for them.

Why is it important to understand what my insurance covers?

The survey found that many Canadians are not confident they understand what their insurance covers or whether their policy would fully protect them in an unexpected situation. Understanding coverage can help consumers make more informed decisions and avoid surprises if they ever need to make a claim.

What can Canadians do if they are unsure about their current coverage?

Canadians who have questions about their coverage may benefit from reviewing their policies and speaking with their insurer or advisor. A review can help identify changes that may be needed and ensure coverage continues to align with their circumstances.

About the TD Insurance Survey

This TD survey, conducted using the Leger Opinion panel, ran from June 19-29, 2026, with a nationally representative sample of 1,500 Canadian adults. The results have been weighted by age, gender, and region to match the population, according to Census data. For comparison purposes, a probability sample of 1,500 has an estimated margin of error (which measures sampling variability) of ±2.5%, 19 times out of 20.

About TD Insurance

TD Insurance is part of the TD Bank Group, one of Canada’s largest financial services organizations. We work in two sectors: general insurance and life and health insurance. We are the largest direct-response home and auto insurance group and one of the top three personal home and auto insurance groups in Canada. We’re also the national leader in critical illness insurance and a pioneer in affinity marketing, where we work jointly with groups to market insurance to their members.

About TD Bank Group

The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group (“TD” or the “Bank”). TD is the sixth largest bank in North America by assets and serves 28.1 million clients in four key businesses operating in a number of locations in financial centres around the globe: Canadian Personal and Commercial Banking, including TD Canada Trust and TD Auto Finance Canada; U.S. Banking, including TD Auto Finance U.S., and TD Wealth (U.S.); Wealth Management and Insurance, including TD Wealth (Canada), TD Direct Investing, and TD Insurance; and Wholesale Banking, including TD Securities and TD Cowen. TD also ranks among North America’s leading digital banks, with more than 13 million active mobile users in Canada and the U.S. TD had $2.1 trillion in assets on April 30, 2026. The Toronto-Dominion Bank trades under the symbol “TD” on the Toronto Stock Exchange and New York Stock Exchange. For more information, please visit www.td.com.

TD Insurance refers collectively to the following personal lines insurance companies within TD Bank Group: Security National Insurance Company, Primmum Insurance Company, TD General Insurance Company, TD Direct Insurance Company and TD Home and Auto Insurance Company.

SOURCE: TD Bank Group

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