Making cents: Shopping around is still the best way to save some cash

This week consumer advice columnist Grainne McGuinnes got a timely reminder of the value of shopping around. 

The phrase is one that is used so regularly when talking about finances that it's easy to dismiss it as a meaningless cliché.

But in reality, it is probably the one easy move every one us can make that is pretty much guaranteed to save money.

As for so many, the renewal notice for my car insurance that arrived earlier in the month was an unpleasant surprise.

Despite six years of claims-free driving, the same car and not troubling my insurer for so much as a chipped windscreen all year, the quote was approximately €280 more than I paid last January.

I know the government say they are tackling the issue with insurers but it is most unlikely to be sorted by my renewal date. So I went online and started gathering quotes.

And yes, it’s a bit of a pain. Filling in endless online forms with a half-dozen different insurers is boring and repetitive, and there seem to be more questions every year. Since when do they not only want to know any penalty points you may have, but the exact infringement and the date you were caught?

But honestly, it took less than two hours to gather quotes that ranged from the truly ridiculous to two which were roughly on a par with what I paid last year. Happy that I wouldn’t have to pay significantly more this time round, I let it lie until I got the inevitable call from my current insurer.

Armed with the “shopping around” I had done, I felt confident saying there was no way I would be renewing at their offered price. They were welcome to ring back but I said that unless they could get close to last year’s price there was no real point.

Lo and behold, a week later I get a call to offer me the same cover for just €35 more than last year, down €245 from their first offer.

Research from another insurance area backs up the importance of shopping around. Protection specialists Royal London reviewed and analysed the best-in-market premiums offered by brokers in the life assurance market over the last five years.

They discovered decreases of 10.8% due to increased competition and efficiencies in the market, so people who have insurance for several years may be missing out on savings.

“Our analysis shows that people should consider shopping around for their life assurance cover,” Joe Charles, Head of Proposition at Royal London Ireland said.

But far too many of us don’t.

“People are often reluctant to think about these financial products for a variety of reasons. Last year we conducted a survey which revealed that 32% cited a lack of confidence in their understanding of ‘financial jargon’ as the primary deterrent.

"The act of changing their policies can save people hundreds if not thousands of euro over the lifetime of a product, but it’s understandable that people are reluctant to shop around if they feel they lack clarity around the different products available.”

A reluctance to wade through different types of policy is often cited as a reason why people don’t move health insurers regularly. But health cover expert Dermot Goode is adamant that anyone who has renewed their policy for more than two years without reviewing it is more than likely paying over the odds.

He believes people who take the time to shop around each year reap appreciable financial benefits.

Savings aren’t limited to insurance. Research by the Central Bank in 2015 found that one in five consumers could get a better deal on their mortgage repayments if they changed provider.

And five minutes on Irish comparison site bonkers.ie will show most consumers they could cut their bills by switching providers.

Mr Charles added: “It all depends on your individual situation whether or not savings are available – but you’ll never know unless you check, which is why people should review their financial products and services regularly.”

So if you only commit to changing one financial behaviour, make it this one. Let 2017 be the year you shop around - and sit back and enjoy the savings.

• If there are any consumer issues that you’d like Gráinne to address or if you have problems that Gráinne could help with, she can be contacted at [e-mail].

Deal of the week

Argos have launched their new Spring/Summer ’17 range and, to help promote it, have created a list of more than 600 items of their best ‘WOW’ deals.

They say: “Bargain-hunters can take advantage of deals from top brands like Dyson, Silentnight and Phillips.”

Their offers include a 49 Inch 4K Ultra HD Ambilight Smart TV from Philips for €659, while a Lenovo Tab 3 10 inch 16GB tablet is on sale for €159.99.

Away from gadgets, families can prepare for brighter days ahead with the Sportspower 12-foot trampoline.

It comes with a ladder and easy-store enclosure and is on sale for €199.99, down from €259.99.

To sweeten the deals, customers can also receive a €5 voucher when they spend €50 or more, or a €10 voucher when they spend €100 or more.

Products are available to check and reserve on argos.ie, with free collection in all stores nationwide.