One-third of Canadians say they would consider reducing their insurance coverage to save money as household budgets face increasing pressure, according to a new TD Insurance survey that found many consumers are uncertain about what their policies protect.
The survey found 84 per cent of Canadians do not fully understand what their insurance does and does not cover, while 62 per cent are not confident their coverage would fully protect them in an unexpected situation. The results point to a gap between the importance Canadians place on insurance and their understanding of their existing policies.
While 85 per cent of respondents said they recognize insurance as an important financial safeguard, half said they do not 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."
Survey highlights insurance knowledge gap
The survey, conducted using the Leger Opinion panel from June 19-29, 2026, included a nationally representative sample of 1,500 Canadian adults. The results were weighted by age, gender and region to match Census data, with a stated margin of error of plus or minus 2.5 percentage points, 19 times out of 20.
The findings show affordability concerns are influencing how Canadians think about insurance decisions. More than half of respondents said they worry one unexpected expense could force them to make difficult financial choices, while 71 per cent said a single surprise expense could undo months of progress toward their savings goals.
Younger Canadians more likely to consider coverage cuts
Among younger Canadians, the survey found Gen Z respondents were the most likely group to consider reducing insurance coverage when budgets are tight, with 55 per cent indicating they would consider doing so.
The same group also reported uncertainty about insurance, with 58 per cent saying they have been putting off reviewing their insurance and 44 per cent saying insurance is confusing.
TD Insurance said Canadians should review their coverage when major life changes occur, including purchasing a home, moving, renovating a property, purchasing a vehicle, changing vehicle use, starting a business, changes to household composition, marital status changes or acquiring high-value belongings.
Company encourages policy reviews before changes
"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.
The company said consumers looking to manage costs should review their policies and ask about available discounts and savings opportunities before making coverage reductions. The release noted possible savings options may include bundling home and auto insurance, preferred rates, claims-free rewards, multi-vehicle discounts, low-mileage discounts, and hybrid or electric vehicle discounts, depending on individual circumstances.
Canadians weigh affordability against financial protection
The survey also found that nearly three in 10 Canadians said they would be more likely to reduce insurance coverage when their budget is tight. TD Insurance said reviewing policies before making changes can help consumers understand the impact of reducing coverage and determine whether their current protection continues to match their needs.
Canadians who are unsure about their policies may benefit from reviewing their coverage and speaking with their insurer or advisor, according to the release. The company said policy reviews can help identify changes that may be needed and ensure coverage continues to align with changing circumstances.