You are here: Home -

The simple way 21 million can cut household bills

0
Written by:
13/06/2016
Millions of Brits are still missing a trick that could collectively knock billions of pounds off their household bills.

Despite attempts by regulators, charities and consumer groups to shine light on the benefits of switching, a new study reveals almost half the population (43%) – the equivalent of 21 million people – haven’t switched provider for everyday financial services and utilities in the last 12 months.

Independent research for comparison site GoCompare found mortgages, credit cards and ISA or savings accounts are the least switched products.

Car insurance, energy and home insurance are the most switched.

While car insurance remains the most switched product, with just over one in five consumers moving provider in the last year, a staggering 36% have never switched their car insurer.

The study found women are less likely to switch then men – 47% of women hadn’t switched any of the top financial and utility products in the last year compared with 39% of men.

Tom Lewis from Gocompare.com, said: “No one likes paying more than they have to, particularly if it’s a grudge purchase like insurance or your mobile phone contract.

“Comparing the competition against your current deal is the best way of making sure you’re getting the best value for money for the product you need and there’s no easier way to that than to use a reputable price comparison website.”

According to the research, using a comparison site could save consumers up to £232 on their car insurance, up to £62 on their home contents and buildings insurance and £207 on their energy bills.

“If everyone who has never switched a financial product or utility, switches just one over the next year they could collectively knock billions of pounds off of their household bills,” said Lewis.

“There’s now a huge choice of car insurers, home insurers, banks and energy providers competing to win your business. There are energy companies and savings banks topping the best buy tables which few people had heard of five years ago. They’re out to build market share by taking customers away from the big players and in our experience, the only reward for remaining loyal to a bank or insurer is a higher price than you’d pay as a new customer. So, shop around for the best deals and if your existing provider doesn’t measure up, switch.”

Top tips to help you get the best deal on your financial products and household bills:

1. Plan ahead: In order to give yourself time to review your arrangements and make sure that you’re still getting a good deal, diarise key dates including renewal dates, expiry dates of fixed rates or tariffs, the end of introductory offers, etc.;

2. Don’t accept insurance renewal quotes or energy tariff changes without first checking that the new price you are being offered is competitive;

3. As well as comparing prices and headline rates, check the small print of the deal you are being offered. Make sure that you understand all the charges, any penalties, exclusions and terms and conditions you will be required to meet;

4. Use a comparison website – they provide quick and up-to-date information on a wide range of financial products and services. Remember, by setting up a free account with a price comparison site and telling them when your renewal is due, you’ll get handy reminders emailed to you when it’s time to switch again.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week