The following is a post from Sophie Ryan, spokesperson for iSelect. At times we combine with other companies to provide expert information, resources, and stats.
Many people may think loyalty pays, but when it comes to common household bills and expenses, new research suggests that sticking with the same plan or provider may actually be costing you some serious, hard-earned cash.
Recent YouGov research commissioned by comparison service iSelect suggests that Aussie households nationwide could be losing out on $18.7 billion in savings annually by remaining loyal to the same service providers and/or plan! Yep, that’s right… a whopping $18.7 billion!
So, how can you make sure your household isn’t losing out? Read on as we explain the steps you should consider taking right now.
1. Figure Out Where Your Lost Savings Might Be
As the cost-of-living crunch continues to bite, it’s no secret many Aussie households are under extreme pressure. Power, groceries, mortgage repayments – prices are high across the board.
Every dollar really counts right now. That’s why it’s so important to find some time to sit down and review your household bills and expenses and see where you could switch and save.
Common household expenses where savings could be found by switching providers or policy/plans include gas and electricity bills and a range of insurance products including health, car, home and contents, pet or life insurance.
So put the kettle on, make a list of expenses, sit down and start searching for your lost savings.
2. Consider How Much You Could Potentially Save
The study also suggests that the savvy Aussie households who took the time to switch could have saved a combined $3.9 billion on their household bills and expenses by changing providers and/or plans during the past 12 months1.
it’s estimated this could equate to an average of around $1,140 in annual savings for each Aussie household that switched and saved last year!
While your household’s potential savings could vary, imagine what you could do with those extra savings!
Of those households surveyed as part of this recent study who saved money by switching a plan, policy and/or provider for at least one household expense in the past 12 months. Most of them (39 percent) said they’ve spent (or plan to spend) the extra savings on groceries, followed by petrol or investing/saving respectively (25 percent)2.
3. Put Health Insurance High Up On Your ‘Review’ List
Why? Well, health insurance is one of those expenses that can be easy to simply ‘set and forget’. More than half of Aussie households (53 percent) surveyed have spent more than five years on their current health insurance policy, and over that time health insurance premiums have continued to rise.
Unfortunately, health insurance premiums will go up again in 2023 by an average of 2.90 percent. Health funds are also increasing their prices at different times throughout year. So, now is a great time to review your cover and to try reclaim any lost savings.
It’s also important to ensure you’re still on a suitable deal. Health needs can certainly change over time and you could be paying for outdated cover, especially if you haven’t reviewed your cover in several years.
Remember too that waiting periods are protected! Any hospital benefit waiting periods you have already served are protected by law if you switch to an equivalent or lower level of hospital cover.
4. Need help? This Is Where To Go
We understand life is busy, and taking the time to regularly review bills and expenses may seem daunting or time-consuming, but it doesn’t have to be with the help of a comparison service. Whether it’s your health insurance policy, energy plan or your car insurance, iSelect* can assist by comparing a range of insurers and policies and help you try to find any lost savings.
*iSelect does not compare all products in the market. The availability of products iSelect compare may change from time to time. Not all products made available from iSelect’s providers are compared by iSelect and due to commercial arrangements, area or availability, not all products compared by iSelect will be available to all customers. Some products and special offers may only be available from iSelect’s call centre or website. Click here to view iSelect’s range of Providers.
Source 1: iSelect commissioned YouGov Galaxy Pty Ltd to conduct a national online survey between 8 December and 13 December 2022. The sample is n=2,000 Australian sole/ joint household decision makers aged 18 years and older. The survey results were weighted by state and household size and projected to all Australian households based on the population data published by the ABS using the latest Census conducted in 2021.
Source 2: iSelect commissioned YouGov Galaxy Pty Ltd to conduct a national online survey between 8 December and 13 December 2022. The sample is n=2,000 Australian sole/joint household decision makers aged 18 years and older, with data weighted by state and household size.