Insurance is one of those things most Canadians know they should have—but many don’t fully understand. Whether it’s home, auto, or life insurance, the wrong choices can cost you thousands or leave your family unprotected. Here are the top five insurance mistakes Canadians make (and how to avoid them).

1. Underestimating Coverage Needs
Many Canadians choose the cheapest policy without realizing it might not cover major losses. For example, having only basic auto insurance doesn’t protect you from all damages or injuries. Always assess your replacement value—not just the market value—of your assets.

2. Forgetting to Update Policies
Life changes—marriage, children, buying a home—should trigger updates to your coverage. Too many people forget, leaving themselves underinsured when it matters most.

3. Not Shopping Around
Loyalty is good, but it can cost you. Different insurers offer better rates and coverage options depending on your age, province, and risk profile. Comparing quotes every few years can save hundreds.

4. Ignoring the Fine Print
Deductibles, exclusions, and limits can drastically affect your claim. Take the time to understand what’s not covered before signing.

5. Treating Insurance as a “Set and Forget”
Insurance isn’t a one-time purchase—it’s part of your ongoing financial plan. Review your policies annually to ensure they still align with your life stage and goals.

Conclusion:
Avoiding these common mistakes can mean the difference between financial security and financial stress. A licensed insurance advisor can help ensure your coverage actually fits your needs.