Consumers 'too lazy to seek best value rates'

The majority of consumers are too lazy to shop around for the best-value financial products, even though it could save them hundreds of pounds a year, research claimed today.

Nearly eight out of 10 people surveyed in the UK admit they have not thought about moving their building or home contents policies in the past 18 months, while 48% don’t even know how much the policies cost them each year.

A further three-quarters of people haven’t changed credit card provider in the past year and a half, while 69% haven’t shopped around to try to get a better deal on their car insurance, according to Virgin Money.

And despite it being most people’s biggest financial commitment, only 15% of those questioned had moved their mortgage in the past 18 months to take advantage of a more competitive rate.

The main reason people gave for failing to shop around was that the money they could save was not worth the time and hassle, cited by 58% of consumers, although Virgin Money said it would actually take less than an hour to pick a new household or car insurance policy.

Scott Mowbray, of Virgin Money, said: “Some consumers are much more savvy about rate-chasing these days, and aren’t afraid to switch providers for a better deal.

“But the majority don’t think it’s worth the effort and are more inclined to renew not review when it comes to their financial providers.

“In fact, it is worth their while to shop around. Research from consumer watchdogs shows that people could be making hundreds of pounds in savings by changing their mortgage, house insurance or credit card.”

:: QRS Market Research questioned 1,005 people during May.