How you can cut the cost of your insurance, current account, credit card, mortgage and more by switching every year
Make your money stretch a bit further by switching these financial essentials every year.
Once you’ve signed up and got your payment details sorted, it can be easy to neglect, or even forget completely, the financial commitments you’ve made.
Though it can be a bit of hassle sometimes, it pays to do your homework each year. You could be saving a fortune or getting a better deal on a whole range of products if you keep on top of what you're spending and when deals end.
Take a look at these things you should look at switching every year and how you could benefit.
Insurance
Insurance is tricky because needs and costs fluctuate frequently. Just think about how your motoring, home, travel, life and medical circumstances can change over time, even in the space of a year.
That’s why it’s so important to review your insurances regularly.
Let your insurer know of any significant changes in your life like moving house, getting married or being diagnosed with a medical condition.
Even after Christmas you should re-evaluate the value of your possessions and update your contents insurance accordingly. This could also be an opportunity to switch. If another insurer can cover it cheaper then go for it!
It’s not all bad news though: reporting changes can actually help bring your insurance premiums down too. For example, if your adult child moves out of the family home and takes their electricals with them, that could knock a fair bit off your contents insurance. If they won’t be driving your car anymore, you can take them off your car insurance which could save you a bundle on your car insurance, particularly if they’re a teenager!
Car and home insurance are both notorious for auto-renewal on their policies, and it can be so easy for your renewal date to creepy by unnoticed, so be sure to keep on top of it. Make sure you shop around at renewal time to avoid a hefty hike in your premiums.
And if you've made a major lifestyle change such as giving up smoking for a year or losing weight, you should definitely shop around for new life insurance and/or private medical insurance policies.
Gas and electricity supplier
This is one that we harp on about all the time. You really shouldn’t be loyal to your energy provider – there’s really nothing in it for you!
Falling wholesale prices have seen energy costs fall over the past year, and you should take advantage of it. The upshot is that a lot of energy deals last for 12 months anyway so it lends itself to regular switching.
With so many dual fuel tariffs available for under £1,000 a year just now, it’d be daft not to move supplier. Haven’t switched for a while? You can start by reading The cheapest gas and electricity tariffs.
Switch your gas and electricity with loveMONEY
Current account
The trick with current accounts is knowing when to sign up or switch. January is an ideal time as, like in the travel industry, banks launch loads of cracking deals and incentives to get people to switch.
You can get up to 5% interest on the TSB Classic Plus Account and the Nationwide FlexDirect Account at the moment. So if your current rate is dire, you know what to do. Other accounts come with other worthwhile perks like cashback and supermarket points too.
Check out The best bank accounts for cashback to make some easy money.
And if you have what's known as a packaged current account, which charges a monthly fee, but you're not using all the benefits it offer then it makes sense to see if you could get a cheaper account elsewhere or switch to one that doesn't charge a usage fee at all.
The Current Account Switching Service makes means that it’s dead easy to move banks, and it can be done within seven working days, with minimal effort on your part.
Get 5% interest on your current account!
Savings account(s)
The issue with savings accounts is that they lure you in with an enticing interest rate only to drop you on to a dismal one once the introductory period is over.
Though it is a pain, it’s best to switch regularly as it’ll work in your favour. At the moment we’d recommend you think about going for shorter term savings accounts as, though the rates aren’t as high as longer accounts, you’ll be in a better position when the Bank of England finally does raise the Base Rate.
You don’t want to have your money locked away for five years and then see savings rates rise after the first year or two.
Compare loads of fixed and variable rate savings accounts right now at the loveMONEY savings centre
Credit card
There are any number of reasons why you might want to switch your credit card: a sudden surge in debt (Christmas has just passed after all), plans to make a big purchase or maybe there are just better rates elsewhere. All of these are good reasons to switch.
Firstly, you could have a chat with your provider to see if you can swing a better deal on your current deal.
If you have debts you should look at 0% balance transfer cards and if you’re planning big purchases like a sofa, car or new kitchen you could look at spreading the cost with a 0% purchase card.
There are cards which offer cashback, Avios and other perks as well as cards with low fees so there are various deals available for different needs. Have a look at the best 0% balance transfer and best 0% purchase cards to find out which is best for you.
Phone, broadband and TV
Home broadband, phone and pay TV prices seem to go up all the time. The best way to beat them is by switching regularly.
It’s up to you whether you want to keep your phone, broadband and TV separate or not, but keeping them together could save you money, though this isn’t always the case.
We’d advise you to haggle if you see any better deals for the service you have. Just be cool, calm and confident. You can find some handy tips over at How to haggle and save a fortune.
Telecoms companies often have new welcome offers and these can be a great platform to haggle with your current provider for a better deal.
As for broadband, see if you’re getting the speed you were promised when you signed up. Try this speed tester from broadbandchoices.co.uk to see if your current deal is cutting the mustard.
Read How to switch your phone, broadband and TV packages for more.
Check the latest top deals at broadbandchoices.co.uk
Loans
Switching loan providers is an area which isn’t often talked about, but with loan rates as low as 3.3% available now it could be worth making the switch. If you took out a loan three or more years ago then rates will have dropped significantly so it’s definitely worth having a look at current rates.
Just be aware that it’s a little different to switching other financial products. Rather than switching directly to a new lender, you take out a new loan and use it to pay off the old loan. And make sure you won't get penalised for switching.
Check out some of the cheapest loan rates available right now at the loveMONEY personal loan centre.
Mortgage
If you’re not locked into a fixed rate already, it’s important to keep reviewing your mortgage deal as it’s likely that you’re on a comparatively poor rate.
Borrowers whose deals are about to end should pay close attention: by not acting now you could end up on your lender’s much less desirable standard variable rate (or SVR). Make a note of when your deal ends and start your search three months in advance. Why not start your search with the loveMONEY mortgage centre?
It's worth reviewing your mortgage regularly no matter what kind of mortgage you have to see if you could pay less.
Just be aware that switching before the end of your mortgage can incur early repayment charges and exit fees so check your paperwork or speak to your lender first to make sure you know how much you’ll be charged for, if anything.
Help organise your financial life by getting loveMONEY's Plans app which gathers all of your accounts, statements and details in one place. Start your 30-day free trial today.
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