Shopping around pays off for vast number of people

Eight out of 10 people who have switched product or service provider in the last year have saved money, according to research.

The study carried out by Amárach Research, on behalf of the National Consumer Agency (NCA), showed that 95% of people who switched car insurance and 91% of those who did likewise with home insurance saved money as a result of their decision. The average amount saved was €102 and €84, respectively.

The research also found that, of the 18 categories included in the research, consumers are most likely to have switched car insurance (13%), mobile phone provider (12%) and their main grocery shop (10%) in the past year.

However, of the 17 categories with comparable results from a similar survey last year, just six remain unchanged in terms of the number of consumers who switched in the past year. A total of 10 sectors have experienced a decline in the numbers switching, with only one category recording increased switching: mobile telephone provider.

The research also looked at repeat switching for the same product or service over the past five years. Just over one in five (21%) have switched car insurance provider more than once within the past five years, with a similar proportion switching their mobile phone provider more than once. The next sectors with the highest incidence of repeat switching are main grocery shop (17%), broadband internet access (16%), electricity supply service (14%), fixed/landline telephone (14%) and top-up grocery shop (14%).

Chief executive of the NCA Ann Fitzgerald said the study showed the value of constantly reviewing your options.

“The research indicates that real savings can be made by switching and we would advise consumers to continually review all their household bills, to compare the alternative options available and [to] switch providers if a better deal is on offer. The incentive for doing so is particularly strong in relation to car and home insurance, with over nine in 10 respondents making significant savings by switching in these areas,” she said.

A total of 84% of those switching found the process easy, with half stating that they are receiving a better service with their new provider. Just 2% stated that the service they are receiving is worse.

The main reason given for not switching product or service provider was “satisfaction with the quality/level of service with the current provider”, followed by “current supplier offers the best value for money”.

“Markets are constantly changing and providers are introducing new offers all the time, so even if you have switched provider in the past, keep an eye out for better deals and avail of them, if you can,” said Ms Fitzgerald. “The findings indicate that for those surveyed, switching was an easy experience where they received a better or similar service and saved money.”