Most Canadians don’t fully understand their insurance coverage, reveals new TD Insurance survey

That new shiny engagement ring looks lovely, but what happens if it's lost or stolen? What about if your car is damaged in an accident and you need a rental vehicle while you wait for repairs?

As Canadians look for ways to manage rising costs, insurance may seem like an easy place to trim expenses. But a new TD Insurance survey suggests many people may not fully understand what they'd be giving up.

One-third of Canadian respondents say they would consider reducing their insurance coverage to save money, despite not fully understanding what their policies do and do not cover. The findings come at a time when many Canadians are feeling financially stretched. In fact, 71% of survey respondents said they worry that one unexpected expense could undo months of progress toward their savings goals.

This points to a growing insurance confidence gap, with some Canadians potentially at risk of discovering coverage gaps only after something goes wrong.

Only 16% of Canadians with home or auto insurance said they fully understand what their coverage includes.

Kristen Gill, Vice President, General Insurance, TD Insurance, understands that insurance isn't always top of mind for busy Canadians.

"Most people don't think about their insurance until they need it. Reviewing your coverage every year can help make sure it still fits your life and doesn't cause any problems down the road," Gill said.

When should I review my policy?

Nearly one-third of Canadian respondents say they haven't taken any steps to review or update their policies, and Gen Z students were most likely to say it’s a task they've been putting off. More than half of Gen Z students said they find the process confusing, and 40% believe their coverage needs won't change.

Canadians lives are constantly changing, and reviewing your policies regularly is important to ensure it covers your current needs and lifestyle. It's best to review your insurance coverage once per year or when there is a life change such as getting married, completing renovations, moving, or having a child reach driving age.

Insurance policies can be difficult to understand, but reviewing yours doesn't have to be. Start by reading your policy documents and identifying any terms, limits, deductibles, or exclusions you don't understand. Questions about a particular policy or individual coverage needs should be discussed with a licensed insurance representative.

Gill also recommends chatting with a licensed insurance advisor.

"They know the policy inside and out, and they can work with the client to tailor the coverage to something that makes sense for them," Gill said.

Insurance policies are not one-size-fits-all and having a conversation with an advisor about your lifestyle, personal needs, and daily habits can help you better understand what type of coverage you may need. It may save you money, too.

For example, if your driving habits change and you're on the road less you may be able to get a lower rate.

"Your life changes, so you should never set and forget your insurance coverage. You can't necessarily assume that the insurance provider is going to review it for you," Gill said.

Before you start thinking about cutting back on insurance, consumers may wish to ask their insurer whether changes in their circumstances affect their premium and whether they qualify for any generally available discounts or multi-policy savings. Eligibility and savings will vary by insurer, policy, and individual circumstances.

What insurance coverage is most overlooked?

Some Canadians only realize they don't have certain coverage when they need to make a claim, such as if their car is in an accident.

Gill said Canadians often overlook optional auto coverage, such as collision or comprehensive insurance, and may carry only mandatory liability coverage. They may also be missing rental car coverage if their vehicle can’t be driven after an incident.

Insurance coverage worth reviewing:

• Coverage limits for valuable personal belongings, such as jewelry
• Water-damage coverages, which may include sewer backup, overland flooding and certain other sources of water damage, depending on the policy
• Temporary replacement vehicle coverage
• Collision (covers repairs to your vehicle after a collision when you are at fault, subject to your deductible)
• Comprehensive (covers damage or loss to your vehicle due to weather, broken windshields, falling trees or objects, theft, and vandalism)

For home insurance, Gill said water coverage is another area to review carefully because it can complex. Canadians also need to inform their insurer if their address changes, another common oversight, she said.

About the TD Insurance Survey

This TD Insurance 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.