Nearly one quarter (23%) of Australians say they’ve never checked to see if they could change plans or providers to save on household bills, A Canstar survey from has revealed, despite research revealing the potential to save more than $7,000 in a year if they do.
The findings come at a time when household bills continue to climb, with health insurance increases of up to 13.8% and some electricity prices set to rise by over 9% from July. New research also shows car insurance premiums have risen by almost 6% over the past 12 months.
With the new financial year fast approaching, households have a great opportunity to reassess their spending and even switch some bills.
More than $7,000 potentially up for grabs
Our research shows if households were to switch from the average cost providers to lower cost providers across household bills, including insurances, the mortgage, electricity, gas, NBN and their mobile phone plans, they could save over $5,500.
Combined with making the switch to cheaper brands in the supermarket, those savings grow by more than $2,000 in a year, to a total of $7,754.
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|
How much could the average household save in one year? |
|||
|---|---|---|---|
|
Average annual cost |
Lower annual cost |
Potential annual savings |
|
|
Groceries |
$11,232 |
$9,048 |
$2,184 |
|
Home loan |
$32,147 |
$30,043 |
$2,104 |
|
Comprehensive car insurance |
$2,747 |
$1,731 |
$1,016 |
|
Home insurance |
$2,594 |
$1,637 |
$957 |
|
Hospital insurance (family, silver policy) |
$3,712 |
$3,192 |
$520 |
|
Electricity |
$1,711 |
$1,392 |
$319 |
|
Gas |
$1,084 |
$790 |
$294 |
|
NBN |
$1,104 |
$960 |
$144 |
|
Mobile plan x 2 |
$792 |
$576 |
$216 |
|
TOTAL POTENTIAL SAVINGS |
$7,754 |
||
Source: Canstar Blue
EOFY deals a great way to add additional savings
Making the switch at the end of the financial year provides plenty of opportunities to take advantage of deals and discounts that can add to the thousands of dollars potentially saved.
- Health insurance: EOFY deals offer up to 12 weeks free when switching. If switching to the same or lower tier, you won’t have to re-serve waiting periods.
- NBN: EOFY deals include discounts for up to six months for new customers, with savings up to $180. If you have your own modem you can save even more.
- Mobile: EOFY deals on mobile offer monthly discounts for new customers with savings of up to $60. These days, porting your mobile number usually takes a matter of hours.
Compare electricity prices
Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Ausgrid network in Sydney but prices may vary depending on your circumstances. This comparison assumes general energy usage of 3900kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision. Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Citipower network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision. Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Energex network in Brisbane but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4600kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision. Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the SA Power network in Adelaide but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.
EOFY a good time for a financial health check
Canstar Blue’s data insights director, Sally Tindall, says, “The end of the financial year isn’t just for taxes, it’s the prime opportunity to do a stocktake of your expenses to see what you could switch, ditch or slim down to save.”
“Canstar research shows an alarming 23 per cent of people have never checked to see if they can save on their bills, when a handful of relatively quick checks could see them pay thousands of dollars less on bills each year.
“It’s not just the shops who are looking to make that one last sale for the financial year, service providers also have targets they need to hit, which makes now the perfect time to leverage the competition.
“Telcos and insurance providers are often running some of their most aggressive promotions before the new financial year begins, while July is peak season for switching electricity as disgruntled customers look to mitigate the price hikes that typically kick in at this time.
“Think of it as your annual financial health check. Yes, switching providers is a great place to start, but take an extra 10 or 20 minutes for each bill to make sure you’re on the right plan. There’s no point paying for extra data you never use, subscription services that can be rotated, or insurance for extra drivers who no longer use your car.
“Collectively, reviewing your insurance options can potentially lead to the biggest savings and while many people think they have to wait until they receive their annual renewal notice, many providers will let you cancel and refund you for the remainder of the year at no extra charge.
“While the temptation is to put it in the too hard basket, if you can carve out a few hours in the next week, you’ll be amazed at how quickly the savings start tallying up.”
Checklist
- Write out a list of every bill that’s negotiable.
- Start with your biggest expense first and work down the list.
- Review each plan to see if it’s still a good fit for you and your finances.
- Compare your current price with the lowest-priced options in the market for the service you need.
- Haggle with your existing provider to see if there is an easy win.
- If not, switch and save.
Image Source: Grusho Anna/Shutterstock.com
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