Consumers miss out on huge savings by sticking with same providers

1st September 2014

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More than half of consumers have not switched any of their financial products in the past year, meaning they could be missing out on huge savings.

Sixty per cent of people have not switched energy provider in the past three years, while a fifth of those surveyed had never changed any of their providers – including their bank, utilities companies and insurers.

Many providers ramp up the cost of premiums for loyal customers while using their best deals to attract new business, so it is vital to shop around in order to keep bills down.

The majority of households can ill afford to pay so much for their financial products as 29 per cent report that they feel worse off than a year ago and 24 per cent state their financial situation is about the same.

GoCompare.com, which commissioned the survey, says that motorists can save up to £222 per year by comparing and switching insurer, while similar economies can be achieved by reviewing other financial products.

Bank accounts topped the list of products that many people had never switched, followed by mortgages, broadband, ISAs and savings accounts, landlines, mobiles, credit cards, energy suppliers, home insurance and car insurance.

Claire Peate, customer insight manager at Gocompare.com, says: “While many people have become committed comparers, switchers and savers – our research suggests that millions could still be paying more than they need to by sticking with their existing providers. ”

She adds: “Energy companies regularly introduce new price tariffs to tempt customers away from their competitors, so it’s always a good idea to review your electricity and gas provider at least once a year to ensure you’re not paying more than you need to.”

 

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