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Are You Overpaying for Coverage You Don’t Need?
- Curtis Armstrong
- Nov 19
- 2 min read
Insurance should protect your peace of mind, not drain your wallet. Yet many homeowners, drivers, and business owners across Ontario unknowingly pay for overlapping or outdated coverage that no longer fits their real needs.
So, how can you tell whether your policy is protecting you or costing you more than it should?
1. When “More Coverage” Isn’t Always Better
It is easy to assume that having every type of insurance means you are safer. But often, clients discover they have been paying for coverage that no longer applies to their situation.
Examples include:
A homeowner who has scheduled items, but the included limit of insurance is adequate.
A contractor whose business downsized or doesn’t have tools to insure but has tool and equipment coverage.
A driver whose policy still includes add-ons for income replacement but they are now retired.
Pro Tip: Review your insurance once a year or anytime your life changes.
2. Life Changes. Your Insurance Should Too.
Your insurance plan should grow with you, not stay stuck in the past. Here are some milestones that require review of your coverage to ensure it is updated and you are paying the appropriate amount:
🏡 Buying or selling property
🚗 Changing vehicles
💼 Starting or closing a business
💍 Marriage or divorce
👶 New dependents
🛠 Major renovations
If any of these have happened in the past 12 months, it is worth calling your insurance advisor.
3. How to Spot Redundant or Hidden Costs
Many policies come bundled with optional add-ons. Some are useful, but others quietly increase premiums without adding value.
Here is what to look out for:
Type of Add-On | When It’s Worth Keeping | When to Reconsider |
Roadside Assistance | If you drive long distances | If you already have coverage through CAA or your car warranty |
Home Equipment Breakdown | If you own aging systems | If most of your equipment is under manufacturer warranty |
Rental Reimbursement | If your car is vital for work | If you have a spare family vehicle |
Flood / Sewer Backup | Always essential in Ontario | Rarely optional – discuss with your broker |
Tip: Talk to a broker who explains your coverage line by line instead of upselling you on features you may not need.
4. Customized Coverage Means Real Savings
At Al Dorman Insurance, we believe in custom-fit coverage that protects what truly matters while removing what does not.
Our approach includes:
Reviewing your current plan to find overlaps
Comparing policies across multiple insurers
Recommending coverage levels that match your real-world risks
Negotiating better rates through bundled or loyalty savings
This ensures your premiums go only toward value-driven protection, not unnecessary add-ons.
5. The Bottom Line
You should not have to choose between saving money and staying protected. The right broker helps you achieve both.
Before you renew another policy automatically, ask yourself:
“Am I paying for protection that no longer fits my life?”
If you are not sure, our team can help you find out.
Additional Resource
To understand more about Ontario insurance coverage standards, visit:
Insurance Bureau of Canada – Understanding Your Coverage
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