A quarter of Brits haven't switched and saved in the last 12 months
New research by Gocompare.com has revealed that although 65 per cent of consumers are anticipating 2012 to be a very difficult year financially, over 12 million of them haven't switched any of the 20 most common financial products including car insurance, home insurance, energy provider, credit card or mortgage lender in the last year.
Just over 8 per cent of respondents, over 2 million2 Brits, say their biggest financial worry for 2012 will be maintaining their mortgage or rent payments, whilst 22 per cent cite the rising cost of living and bills as being their biggest concern.
26% of consumers haven't switched any of the 20 most common financial products in the last 12 months
12% of drivers have never switched their car insurer
13% of consumers have never switched their home insurer
22% have never switched bank accounts
14% have never switched their mobile phone provider
13% have never switched mortgage lender
12% have never switched their credit card provider
9% have never switched savings accounts
8% have never switched energy provider
8% have never switched their life insurance
Some consumers are taking the bull by the horns to save cash by comparing the deals on their financial products, ditching uncompetitive providers and switching to companies offering better value for money.
36% of consumers have switched their car insurance provider in the last 12 months
27% have switched their home insurance provider in the last 12 months
11% have switched their energy provider in the last 12 months
10% have switched their mobile phone tariff in the last 12 months
13% 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 over 19 million drivers could be missing out on cheaper car insurance. Gocompare.com customers save an average of £393.67 by switching their car insurance after comparing policies from over 125 different insurers and brokers.
Just 26 per cent of consumers have switched their home insurance provider in the last year which means around 19 million households could also be paying too much to protect their home and belongings. Gocompare.com customers save, on average, £125.33 by switching their buildings and contents insurance after comparing policies from over 80 different insurers and brokers.
Most energy companies have already increased their prices for this winter. However, just because they have put their prices up, it doesn't mean that all tariffs will offer equal value for money. There are many variations depending on where you live, how much energy you use and whether you choose an online or standard tariff. Just 11 per cent of people switched their energy provider last year which means that over 23 million5 households could be missing out on cheaper energy deals and wasting hundreds of pounds a year. In fact, customers who switch their gas and electricity provider with Gocompare.com could save up to £557.33.
According to Ofcom, 91 per cent of UK adults now own or use a mobile phone and 23.5 million households have a fixed telephone line. In the last 12 months just 10 per cent of consumers switched their mobile phone tariff and less than half of that number (5 per cent) switched their land line provider. With eight major mobile phone operators to choose from and BT no longer having a monopoly on 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, Sky and Virgin Media, just 7 per cent of consumers switched their broadband provider in the last 12 months.
According to the Bank of England, in October 2011 the UK credit card debt was approximately £56.5 billion, and the average standard interest rate being charged on credit cards was 16.73%. In the last 12 months just 13 per cent of consumers switched their credit card balances.
John Miles, business development director at Gocompare.com, said: "Nearly two thirds of Brits are expecting 2012 to be a very difficult year for their finances, but our research shows that millions of consumers could be missing out on hundreds of pounds worth of savings by not reviewing their finances and switching to better deals on some of the most common financial products. Insurers, banks, energy providers and lenders do not customarily reward loyal customers with the best premiums, interest rates or tariffs, so it's up to the consumer to spend a little time seeking out the best deals. If one of your New Year's resolutions was to sort out your finances, spending a few minutes on a comparison site could go a long way to easing your 2012 money worries."