Now that is the ideal insurance question. Finding better insurance deals sometimes comes at a time when the expiration date of the current plan is months away. What to do?

Finding out that the current policy is costing more than it could be somewhere else raises many questions. Insurance companies can charge a cancellation fee when a switch to another company occurs. The savings may be worth it, but looking at what the costs to cancel would be including the policy price and how long the policy holder has been with the company.

Switching can cost money, but may be beneficial in the long run. The question ends up being to switch or not to switch? There are things to consider before making the big decision and steps to take.

Contacting the insurance company and acquiring the information on cancellation costs is the first step. The policy premium then needs to be divided by 12 or the monthly payment can be used. The number then needs to be multiplied by the months remaining in the plan. This number will be used later.

A new insurance company can be contacted and the premium can be divided by 12 and multiplied just like the above policy. Now subtract the current policy rate from the new company's rate. The cancellation rate may be lower than the savings and that means that a switch needs to occur. If the savings are lower then forget about it.

Never cancel the current insurance until a replacement is done and the switch is final. This prevents any lapses in coverage.

Antoine Belanger works as an auto insurance consultant and is an expert on insurance bureau of Canada, the agency responsible for Canadian insurance laws. He also provides online car insurance quote.

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