Canada Rate LabCOMPARE • CALCULATE • SAVECost Index
Canada Rate LabCOMPARE • CALCULATE • SAVE

Independent Canadian insurance research. Information only — not an insurance quote.

SWITCH NOW OR WAIT FOR RENEWAL

Insurance Switching Savings Calculator

Compare switching insurers now with keeping your policy until expiry. Include retained premium, extra costs and the new quote over the same period.

Illustration of a woman reviewing insurance documents at a table.
Illustrative image

Compare the cost to your current expiry

Use written figures for car, home, tenant or business insurance. This worksheet compares costs up to the existing policy’s expiry; it does not predict either insurer’s next renewal price.

1. Set the comparison period

The new policy starts on the switching date and must cover through the current expiry. Dates use whole calendar days, including the start and excluding the expiry. Confirm the actual times with both insurers.

2. Enter full-term premiums

Use the full premium for each dated term, not a monthly instalment or deposit. Enter the same coverage basis. Premiums exclude separate taxes, financing and charges in this worksheet.

3. Account for leaving the current policy

Ask what the current insurer would keep for the exact switching date. A daily pro-rata scenario is an assumption, not the insurer’s cancellation calculation.

Include the premium for elapsed coverage plus any short-rate adjustment already included by the insurer. Do not enter only the penalty, refund or remaining balance.
Include confirmed cancellation or setup charges and extra costs on another policy, such as a lost bundle discount. Count each cost once. Leave unknown costs blank; enter 0 only if confirmed zero.

Your comparison

Complete the dates and required amounts to compare the same period.

Difference = current full-term premium − retained premium − allocated new premium − additional switching costs.

A price difference does not establish equivalent coverage. Check limits, deductibles, exclusions, endorsements and eligibility before making a decision. No rate, fee, tax or future renewal price is inferred.

Enter valid values to download or print your calculation. The file is created on your device.

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How the comparison works

Both choices use the current policy’s original start and expiry as the cost window. Keeping it costs the full-term premium. Switching costs the old insurer’s retained premium, the part of the new premium allocated to the remaining days, and the additional costs entered.

Difference = current full-term premium − retained premium − allocated new premium − additional switching costs.

Allocated new premium = new full-term premium × days from switching to current expiry ÷ days in the new policy term. Each allocated amount is rounded to cents. Leap days are included.

If the new policy ends before the current one, this worksheet stops: another price would be needed to cover the missing days. Switching exactly at renewal has no remaining period here; use the quote comparison calculator for the upcoming term instead.

Worked example: a cheaper quote with a cancellation cost

A current policy runs from January 1, 2026 to January 1, 2027 and costs $2,400. The proposed switch is July 1, 2026. The new 365-day policy costs $1,800, the old insurer would retain $1,300, and additional costs are $25.

Worked example: a cheaper quote with a cancellation cost
Comparison itemAmount (CAD)
Keep the current policy$2,400.00
Old insurer’s retained premium$1,300.00
New premium: $1,800 × 184 ÷ 365$907.40
Additional costs$25.00
Switching cost on the same period$2,232.40
Estimated cost reduction$167.60

There are 184 days to the current expiry. The result is $167.60 less allocated cost from switching within this comparison window. The $892.60 of the new premium allocated after January 1 is outside the comparison, but remains part of the new contract’s $1,800 premium.

Check these details before switching

  1. Ask for the retained premium and all separate charges for the same effective date.
  2. Compare coverage and ask whether a bundle, loyalty benefit or endorsement would change.
  3. Confirm the new coverage and effective time before ending the current policy. Keep written confirmations from both insurers.
  4. Check the full new payment schedule and when any old-policy refund would arrive. Allocated savings do not tell you how much cash you need upfront.

Questions about switching costs

Is the cancellation refund my saving?

No. A refund returns part of money already paid. This comparison counts what the current insurer retains and the cost of replacement coverage. Adding the refund again would double-count it.

Why not compare the two annual prices?

Different dates and cancellation terms can change the answer. A lower annual price may not recover the cost of leaving before renewal. This worksheet compares a single shared time window.

What if I do not know the retained premium?

Request it from the current insurer for your chosen date. You can explore pro-rata arithmetic while waiting, but that scenario does not confirm a refund, penalty or saving.

Does this work across Canada?

The arithmetic accepts figures from auto, home, tenant or business policies. It does not determine which coverages can be moved to a different provider in a province, or apply a provincial cancellation rule.

Sources and calculation basis

IBC’s consumer guide recommends checking early cancellation fees and coverage needs. The date allocation and comparison formulas above are Canada Rate Lab’s planning method; IBC does not supply a universal cancellation table or endorse this result.

IBC — Find the insurance that fits your needs

Calculation and source reviewed October 5, 2026.