Shop Around using Comparison Sites to Save Money
Published: 4 July 2012 By Peter Thompson Leave a Comment
Savvy Brits are able to save money by using comparison sites to shop around for better deals on their utility bills, insurances and other banking and financial products according to new research by Gocompare.com.
The research reveals Brits collectively saved £2.5 billion in the last 12 months by using comparison sites when buying such products.
Nearly 20% of those surveyed thought that managing their money would be much harder without comparison sites and in fact a third of respondents compare products on aggregator sites at least four times a year.
Many of those surveyed have helped a friend or relative, who doesn’t have interest access, to find a better deal online.
In 2011, car and home insurance were the top products customers switched to get a better deal.
Millions though could still be paying more than they need to for their insurance and energy because they stay loyal to their existing provider. Unfortunately as suppliers look to offer their most attractive deals to lure new customers, often the reward for loyalty is a higher price than you’d pay as a new customer.
According to Gocompare the top 10 switched products in 2011 were
Product/service Percentage of people switching
- Car insurance 36%
- Home insurance 27%
- Credit cards 13%
- Energy suppliers 11%
- Mobile phone tariffs 10%
- Travel insurance 10%
- ISAs 9%
- Savings accounts 9%
- Pet insurance 7%
- Broadband tariffs 7%
John Miles, Gocompare.com’s business development director, commented: “At a time when many people need to cut back on their outgoings, sites like Gocompare.com provide one of the most effective ways to compare a range of insurance and other everyday financial products.
“Comparison sites provide fast and current information on what’s available, helping people access not just a cheaper deal, but enabling them to more easily compare products to find the best value for money.
“By their very nature, financial products are complex and the prospect of reviewing your money matters can be quite daunting. But, as our research shows, comparison sites are helping people become more money conscious and feel more empowered when making financial decisions. ”
MoneyHighStreet comments: “At a time when most are trying to save money, it is important to compare deals on your financial products. Be careful though as these sites may not automatically give you the best deal as recent research by Which? revealed.
“Think carefully about what you are buying and how it matches your requirements. For example if buying car insurance only buy the cover that meets your needs, don’t just opt for the cheapest premium. Do make sure you are not underinsured though.
“Don’t end up paying for cover that you don’t actually need. For example, with car insurance carefully consider the cover you actually need too – do you for example need fully comprehensive cover or will third party, fire and theft suffice? Can you specify the annual mileage you will do?”
There are a myriad of comparison sites, covering a range of insurance and other personal finance services, such as switching energy provider. Such sites include: