1 in 4 Brits have never switched and saved
New research by comparison site Gocompare.com has revealed that although 61 per cent of consumers are expecting 2011 to be a very difficult year financially, over 12 million of them have never switched any of the 20 most common financial products including car insurance, home insurance, energy provider, credit card or mortgage lender.
25.9% of consumers have never switched any of the 20 most common financial products
13.6% of drivers have NEVER switched their car insurer
13.8% of consumers have NEVER switched their home insurer
29% have NEVER switched bank accounts
15% have NEVER switched their mobile phone provider
13% have NEVER switched mortgage lender
12% have NEVER switched savings accounts
8% have NEVER switched energy provider
81 per cent of Brits are hoping to save money this year with 22 per cent citing bills and the rising cost of living as their biggest financial worry for 2011. 10 per cent of survey respondents said it was likely they would have to ask friends and family for financial help this year.
Some consumers are being proactive in trying to save cash by comparing the deals on their financial products, ditching uncompetitive providers and switching to companies offering better value for money.
31% of consumers have switched their car insurance provider in the last 12 months
26% have switched their home insurance provider in the last 12 months
10% have switched their energy provider in the last 12 months
12% have switched their mobile phone tariff in the last 12 months
14% have switched a credit card balance in the last 12 months
9% have switched savings accounts in the last 12 months
However, the research reveals that a potential 19 million drivers could be missing out on cheaper car insurance. In 2010 Gocompare.com customers saved an average of £296.07 by switching their car insurance after comparing policies from over 120 different insurers and brokers.
Just 26 per cent of consumers switched their home insurance provider in the last year which means up to 19 million households could also be paying too much to protect their home and belongings. In 2010 Gocompare.com customers saved, on average, over £238.22 by switching their buildings and contents insurance after comparing policies from over 70 different insurers and brokers.
Just before Christmas energy companies underwent a round of price increases which will mean higher bills for most consumers this winter. However, just because most energy companies have put their prices up it doesn't mean all of the tariffs will offer equal value for money. Just 10 per cent of people switched their energy provider last year which means that 23 million households could be missing out on cheaper energy deals and wasting hundreds of pounds a year. The average saving made by Gocompare customers switching their gas and electricity provider in 2010 was £442.13
According to Ofcom 89 per cent of UK adults now own or use a mobile phone and 22.9 million households have a fixed telephone line. In the last 12 months just 12 per cent of consumers switched their mobile phone tariff and half that number (6 per cent) switched their land line provider. With eight major mobile phone operators to choose from and BT no longer having a monopoly for fixed lines it's worth comparing the different providers for the best deals for your home and mobile phones.
Despite strong competition between internet service providers such as BT and Virgin Media just eight per cent of consumers switched their broadband provider in the last 12 months.
According to the Bank of England in October 2010 the UK credit card debt was approximately £58 billion and the average interest rate being charged on credit cards was 16.68%. In the last 12 months just 14 per cent of consumers switched their credit card balances.
John Miles, business development director of Gocompare.com, said: "4 out of 5 Brits are hoping to save money this year but unfortunately insurers, energy providers, and lenders aren't in the habit of voluntarily giving better deals to loyal customers so it's up to consumers to shop around. Thankfully comparison sites now make it easier than ever to quickly compare and switch a wide range of financial products so if consumers have access to the internet a few minutes spent managing their money could save them a packet in 2011."