Time to switch insurance?

Posted on: 29th January 2019 in Insurance News

Is it time to get a better deal on your insurance and other key household bills? Three out of every five Brits switched providers last year for at least one of the top ten most common financial products. The word is out that, when it comes to financial products, a regular review can save you money! Fresh stats from UK’s Go Compare show that 64% of people switched at least one key provider in 2018 – which was 7% up on 2017. Insurance for car and home continue to be the top two products switched. Broadband, mobile phones, credit cards and energy saw the greatest increase in switching. So why the rise in switching? Of course, uncertainty over Brexit is fuelling financial worries for 2019. But, on the plus side, the UK Government has supported consumers by capping the charges that gas and electricity providers can make. Regulators Ofgem say the average customer should save around £76 a year as a result. This has led to a growing awareness that a review of financial products is an annual necessity. If you don’t keep checking what’s out there, you can end up paying for your willingness to stay put with your existing provider. Matthew Sanders of Go Compare reports that, “the notion that “loyalty pays” has been well and truly outed in the last 12 months, with the authorities taking steps to stop rip-off loyalty pricing.” Go Compare’s data shows that consumers generally stay loyal to their provider of motor insurance for 2 years and to their home insurer for 2.2 years. For energy suppliers, the average duration is 2.5 years. Sanders of Go Compare says, “if you are looking to make savings, switching providers for everyday financial services products and household utilities is an easy and effective way to reduce your outgoings … if you’ve never switched before or haven’t done so recently, you’re certain to save money.”

How many switched provider in 2018?

Car insurance: 28%
Home insurance: 23%
Energy: 20%
Mobile phone: 17%
Broadband: 14%
Credit card: 11%
Current account: 10%
Land line: 9%
ISA or savings account: 8%
Mortgage: 6%

Top tips for switching

Go Compare share some tried-and-tested tips for getting the best deal on your household bills:

Put key expiry dates in your diary. Otherwise you won’t remember when the time comes around to look at switching, and you may miss out on a securing a better deal.
Don’t accept an automatic renewal without checking out the market first!
Read the small print.
If a deal features an introductory rate, make sure you know what rate comes afterwards. Ensure you have a clear picture of your overall liability.

So get switching!

Ask your IFA to give you some juicy switching options. Maybe there’s deals that they know about and you don’t. Otherwise, price comparison sites online are widely recognised as being easy to use. And, if you can endure the risk of a little hassle, switching can definitely save you money.