The cost of inertia
The cost of inertia
While shopping around for the best deals on energy tariffs and home and car insurance remains one of the most effective ways that you can save money and combat rising household costs, many of us fail to do so.
In fact, only one third of the nation switched energy or insurance providers in the last 12 months, with the rest of us tending to renew automatically. Shockingly, we were least likely to switch energy providers - even though it would probably save us the most money.
However it’s easy to see why we become inert. Switching energy or insurance providers can be a time-consuming and unenjoyable process, adding to the seemingly endless life admin that many of us battle. It’s not surprising that we choose to carry on paying more than we need to.
What’s it worth?
The latest study from the Simples Lab looked at what it would take for the nation to look for a more competitive deal across their energy, motor and home insurance bills. Our research found the exact financial saving that would incentivise households to switch. So, how much is this ‘tipping point’, and how does it compare to the savings on offer?
The highest tipping point was for energy, with the average person saying it would take a saving of £99 for them to switch providers. Car and home insurance came in lower at £66 and £64 respectively.
Savings exceed expectations
Happily, the average savings are far higher than people expect, easily outstripping the tipping points. Changing car insurance providers leads to an average saving of £120 while those who switch home insurance could save £95.
But it’s energy which leads to the greatest saving. Customers who switch from non-competitive standard variable tariffs to fixed rate tariffs can save £206 according to regulator Ofgem - more than double the energy tipping point.
With savings much greater than expected and life admin taken out of the equation by AutoSergei, switching energy and insurance provider is easier than ever.Go back to the Simples Lab