Australians Switching Service Providers More Common Despite It Being Harder Than Ever to Compare Prices

A growing number of Australians are no longer loyal to their electricity, mobile phone and insurance provider, instead opting to shop around for a better deal, even though they are bogged down in offers that are often hard to understand.  

For many consumers ‘shopping around’ is confusing. It’s a minefield of combined offers, early payment discounts, cross-promotions and even frequent flyer point rewards to wade through to uncover the real cost and suitability for you - the customer.

Consumer advocate and co-founder of GetReminded Silje Dreyer said the rise of budgeting apps, community savings groups on social media and the growing celebrity status of financial experts like the Barefoot Investor are empowering people to examine what they spend their money on and cut costs. 

“A record number of Australian consumers, one in four, switched energy retailers last year to get a better deal, according to the latest figures from the Australian Energy Market Commission,” said Ms Dreyer.  

“That means a staggering 75% of energy customers are still not shopping around and could be overpaying.” 

“Money is no longer a taboo topic, people are starting to feel comfortable asking others what they pay for essential household services and they are keen to shop around but often don’t know where to start,” she said. 

“The first step is to know when you have maximum leverage – not so late that you have to make a rushed decision, but early enough to have enough time to shop around.”

Silje Dreyer offers these simple tips to help you shop around and save money:

 

Mobile phone plans

• Data - How much data do you need? Does each family member need their own or can you pool your data? Allow for at least a 25% increased usage per year as we stream more and consume more content.

• Bundled Deals - This may include home broadband, Pay TV subscription and streaming data, again making sure your bundle only contains things you will use.

• Contract - Weigh up a contract versus pay-as-you-go, especially if you already own your handset as a no lock-in contract usually provides better value.

• Mobile Handset - If you’re looking to upgrade your handset, check out the price of buying one outright as it may be way cheaper than in a contract. It’s better to take any handset contract over 24 months as you’re likely to want to upgrade again.

 

Home and car insurance

• Value of Home and Car - Ensure your cover accurately reflects the value of your home or car – don’t let your insurer artificially lower the value to just to bring down your premium, but also don’t get caught out by not increasing the cost of rebuilding or replacement.

• Optional Extras - Look at the extras you think you might actually need rather than just want, such as windscreen cover, a loan car and no-fault claims.

• Renewal Time - Don’t just accept an increased renewal premium from your current insurer. By shopping around check you’re getting the best value. Evaluate if a higher excess can reduce your premium. 

Energy 

• Pricing Tariffs - There are generally three pricing tariffs to be aware of – peak, off-peak and shoulder time – and each household will have different usage patterns each season – look at your entire last 12 months then compare your actual usage across different providers. 

• Green Energy - Environmentally friendly energy can be more expensive, so you need to decide how important it is for you to be green.

• How to pay – There will often be a substantial discount for paying by direct debit so this is a no-brainer, but make sure you set a reminder to top up your account before the direct debit date to avoid bank charges. 

• Contract renewal - Remember all energy contracts will revert to a default market offer unless you shop around and agree to a new contract. Set up a renewal reminder in the free app GetReminded.

For further advice and in-depth reviews, check with Canstar or Choice for unbiased comparisons between mobile, insurance and energy providers.

 

About GetReminded 

• GetReminded is a free app for desktop, iOS and Android smartphones that enables users to set reminders for when it’s time to renew contracts, policies and documents to avoid leaving it to the last minute and overpaying. www.getreminded.com