Rising cost of living forcing many B.C. residents to consider cutting insurance | Daily Hive

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The rising cost of living continues to impact many British Columbians, and many people in the province are considering eliminating insurance in order to try and balance the books.

According to a recent study by TD, 33 per cent of B.C. residents reported that they would consider reducing their insurance coverage when budgets are tight.

However, the survey states that many respondents may be taking financial risks they don’t fully comprehend.

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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,” said Kristen Gill, vice president of general insurance at TD Insurance, in a release. “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.”

Of the Canadians surveyed, Gen Z is most likely to cut back on insurance to reduce pressure on budgets at 55 per cent.

TD also shared additional figures for B.C., revealing that 67 per cent of residents in the province expect everyday costs to put pressure on their budgets before the end of 2026.

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The biggest financial pressures are expected to be grocery costs (54 per cent), fuel (39 per cent), vehicle maintenance or winter tires (29 per cent), and heating and utility bills (26 per cent).

B.C. residents have some homework to do when it comes to their insurance, as only 45 per cent have reviewed their policy in the past year.

Nearly two-thirds of residents admit they’re not confident their insurance would fully protect them in an unexpected situation, and about 90 per cent say that they don’t understand their home or road vehicle insurance coverage.

“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.”

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Ongoing worries about cost of living correspond with similar findings in the recent MNP Consumer Debt Index, which reveals that for around 58 per cent of B.C. residents, at least half of their income has already been committed before they get their paycheque.

MNP pointed to the fact that many B.C. residents are caught in what it coined a “pre-spent paycheque cycle.”

Upon entering each pay period, for these folks, most of their income has already been dedicated to certain expenses.

According to a recent report by RBC, 42 per cent of B.C. residents reported that they feel they’re just one major unexpected expense away from being financially “over the edge.”

Even a smaller unexpected financial hit could have severe consequences for over a third of B.C. respondents to the national poll.

With files from Daily Hive staff