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80% of Brits switched at least one financial product in the last decade

Joanna Faith
Written By:
Joanna Faith
Posted:
Updated:
28/01/2020

The 2010s were the decade of switching, with eight in 10 Brits saving money by changing provider for at least one financial services product.

Car insurance was the most switched product in the last decade, followed by energy, home insurance and mobile phones, according to a study by GoCompare.

More than half (57%) of people surveyed said they were now more likely to switch provider to get a better deal than they were 10 years ago.

Lee Griffin, chief executive of GoCompare, said: “The 2010s really were the ‘Decade of Switching’ thanks to comparison sites, faster switching and greater intervention. As a result, consumers are now much more likely to change provider to get a better deal than they were a decade ago.”

The products that saw the biggest increase in switching activity over the last decade were energy (up from 9% in 2010 to 21% in 2019), mobile phones (6% to 17%) and broadband (5% to 14%).

However, 21% of people admitted to never switching provider and 39% didn’t switch any of the most common financial products in the last 12 months.

As a result, GoCompare is campaigning for urgent action to be taken on insurance renewals to reduce the impact of so-called loyalty penalties which could be affecting millions of insurance customers, while trying to promote greater transparency and remove the barriers to switching.

The comparison website is also calling for the cooling-off period for auto-renewals to be doubled to 28-days, for insurers to do more to help customers understand their options at renewal and to provider clearer information on the price of cover.  It is also recommending limiting or banning cancellation fees for customers who switch during the extended cooling-off period.

Five ways to get the best deal on financial products and household bills:

  1. Diarise renewal and expiry dates to give you time to shop around
  2. NEVER accept an insurance renewal without checking if you could get a better deal
  3. Use a comparison website – it’s the quickest way to get the best deals
  4. Remember to compare product features as well as prices
  5. Don’t forget to check the small print.