A new TD Insurance survey reveals a widening confidence gap as household budgets tighten
A new survey suggests Canadians are making potentially costly trade-offs with their financial protection at exactly the moment they can least afford an uncovered gap.
One in three Canadians (33%) say they would consider reducing their insurance coverage to save money, according to a TD Insurance survey conducted by the Leger Opinion panel between June 19–29, with a nationally representative sample of 1,500 adults.
The finding arrives as mortgage renewals and rising insurance costs are squeezing homeowners again this year, with 1.15 million Canadian mortgages expected to renew this year, the highest volume in the current cycle.
The survey found that 84% of Canadians do not fully understand what their insurance does and does not cover, while 62% are not confident their coverage would fully protect them in an unexpected situation.
Despite this, 85% acknowledge that insurance is an important financial safeguard, a contradiction that illustrates how cost pressure is pushing decisions without sufficient information.
"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."
Younger Canadians face the widest protection gap
The generational breakdown warrants particular attention. Among Gen Z respondents, 55% said they would consider reducing coverage under budget pressure, the highest of any generation surveyed. Some 58% said they had been putting off reviewing their insurance, and 44% described it as confusing.
This demographic is entering homeownership at a time when lender mortgage insurance costs Canadian families two to three times more.
More broadly, 56% of all respondents say they worry that one unexpected expense could force them into difficult financial choices, while 71% fear a single surprise cost could undo months of savings progress, a concern that aligns directly with the financial strain driving Canada's renewal wave.
A role for brokers in closing the gap
Natasha Duric, Vice President, National Sales, Canada, mortgage creditor insurance at Manulife, told CMP in its 2025 year-end industry review that affordability has become a significant concern across the broker market, particularly as clients face materially higher payments at renewal than at origination.
The pattern described in the TD Insurance findings echoes conditions flagged in CMP's coverage of Ontario home insurance cost spikes driven by flood risk, where rising premiums have added to total homeownership costs even as buyers manage elevated mortgage payments.
Gill said Canadians should review their coverage whenever a life change occurs, including purchasing, moving, renovating, or changes in household composition, rather than simply cutting back.
"Without the right coverage, an unexpected event could mean dipping into savings that were set aside for other goals," she said.
"Reviewing your coverage regularly and asking questions can help ensure your protection reflects your current needs."
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