Half of Brits feel worse off now than they did 12 months ago
Nearly half (49%) of Brits feel worse off now than they did 12 months ago, the highest number ever recorded by Gocompare.com, which has been asking the question since August 2010. This is also an increase of 7 percentage points since July 2012. A fifth of Brits say they are now seriously worried about their finances and nearly a quarter (23%) said that they tend to run out of money before the end of the month.
However, nearly a quarter (24%) of Brits have NEVER switched any of the 20 most common personal finance products, including car insurance, home insurance, energy provider or mobile phone operator and could be missing out on hundreds of pounds of savings each year.
Switching and saving
According to the new survey, carried out for Gocompare.com in October 2012 with over 2,000 UK adults, those who've cut costs by using a comparison site in the last year saved on average £175 each by comparing and switching popular financial products.
Almost two thirds of British drivers (64 per cent) haven't switched car insurer in the last 12 months and 44 per cent have stayed with the same insurer for more than two years. Unfortunately, when it comes to insurance loyalty hardly ever pays, and drivers could save, on average, £403.55 by using Gocompare.com.
The research found that it isn't just car insurance where households are potentially missing out on big savings. The switching figures for home insurance show that 72 per cent of consumers haven't switched home insurer in the last 12 months and one in five (21%) have never switched.
Energy bills are another household expense where savings can be made but 83 per cent of respondents have not switched their energy provider in the last year. Gocompare.com customers could save up to £350.95 by switching supplier and yet more than half (56%) of consumers haven't switched energy provider for three years or more, and 29 per cent have never switched.
Other household expenses that people infrequently switch provider for include:
Bank accounts - 39 per cent of people have never switched
Broadband provider - 25 per cent of people have never switched
Mobile phone operator - 26 per cent have never switched
Land line provider - 21 per cent have never switched
John Miles, Gocompare.com's business development director, commented: "Forty nine per cent of Brits feel worse off now than they did a year ago. That's the highest percentage we've ever measured in one of our surveys and is up from 42 per cent in July. Unfortunately it seems to confirm what many of us already know, that more than five years on from the start of the credit crunch UK consumers' finances are still suffering.
"However, 47 per cent of people also say they could be doing more to save money and one of the best ways to start is by comparing, switching and saving on outgoings like car insurance, home insurance and energy. Car insurance premiums remain close to record highs, with average premiums more than doubling in the last three years, so motorists could make significant annual savings just by switching this alone.
"Saving money on your household expenses needn't be a chore. Don't accept your insurance renewal quotes or energy tariff changes without checking that the new price is competitive, and take time once or twice a year to review your finances and check that you are not paying over the odds for your household bills. Comparison sites, like Gocompare.com, provide quick and up-to-date information, helping people find the best deals at the best prices so there's no excuse for throwing your hard earned cash away year after year."