1 in 3 Canadians say they’d cut insurance to save money, TD survey says

Mounting living costs are forcing many Canadians to reconsider their insurance coverage, with a significant portion contemplating reductions or cancellations to manage their budgets. A new survey by TD Bank indicates that one-third of Canadians (33 percent) would consider cutting back on their insurance plans to save money.

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With the cost of everyday essentials continuing to rise, it’s understandable that Canadians are taking a closer look at their household expenses.

Kristen Gill, vice-president of general insurance at TD Insurance, stated that the rising cost of everyday essentials understandably leads Canadians to scrutinize household expenses. "When budgets are stretched, it’s natural to look for places to save," she added. The survey highlights widespread financial anxiety, as 56 percent of respondents worry that a single unexpected expense could compel difficult financial decisions, and 71 percent fear such an event could undo months of savings progress.

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When budgets are stretched, it’s natural to look for places to save.

The trend is particularly pronounced among younger demographics. More than half of Gen Z respondents (55 percent) indicated they are likely to reduce insurance coverage to ease budget pressures. Additionally, 58 percent of Gen Z individuals have insurance plans but are delaying reviews, while 44 percent find insurance policies confusing. This confusion is not limited to younger generations; 84 percent of all respondents admitted they do not fully understand their insurance coverage, and 62 percent lack confidence that their current plans would adequately protect them in an emergency.

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No insurance could mean you could lose the financing on your home.

Experts warn of the risks associated with skipping insurance. Gill emphasized that coverage protects current assets and prepares individuals for the unexpected, preventing emergency dipping into savings. Brett Weltman, spokesperson for the Insurance Bureau of Canada, noted that homeowners without insurance could face severe consequences, including losing their mortgage financing and being solely responsible for all damage costs, from roof repairs to liability claims.

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Having no insurance would mean the property owner will be financially responsible for all damage costs from a peril.