Adults overpaying for financial products

The average household could save up to £547 every year by switching the five financial basics to the best deal on the market, new MoneyExpert.com research shows. And 84 per cent of adults are overpaying for one or more financial product, the analysis shows.

MoneyExpert.com conducted the research to demonstrate the benefits of shopping around for the best deals – and also to highlight the benefits of using a comparison website.

The £547 annual household saving comes from switching home insurance, motor insurance, mortgages, personal loans and credit cards to the best deal for each individual. Research from the independent financial comparison website shows the biggest saving would come from moving a personal loan. On average borrowers could save £204 a year by moving to the best deal.

Drivers could cut their car insurance bill by around £158 a year while homeowners would be £76 a year better off.

Sean Gardner, Chief Executive of MoneyExpert.com, said: “With everyone coming under increasing financial pressure from rising bills it makes sense to find every possible way to cut costs.

“Our analysis shows potential savings of up to £547 are on offer from reviewing basic financial products and that would be a major boost for household budgets.

“Not everyone will save that much but four out of five of us are overpaying for at least one of the financial basics. Typically, UK consumers are paying out £150 per year more than they need to. I’d urge people to spend just a few minutes online to review their finances.”

MoneyExpert.com aims to demystify the complex world of personal finance, and to help inform customers of the choices available. The service can be found at moneyexpert.com.