I don’t know about you, but 2023 is breaking my bank account. Everything’s gone up – fuel, rates, rego, electricity, insurance, and don’t get me started on how much we’re paying weekly for groceries (having a teenage son doesn’t help!). Plus of course, the notorious interest rate rises killing our budgets with rising home loan repayments or rent payments.
Like 80% of Aussie parents, we’ve had to cut back a fair bit – fewer meals out, no fancy holidays, and hiding the school snacks in a secret container so the kids don’t eat their weekly snack budget in a day.
But did you know you can save an average of over $1,100 a year* on some of the most *ahem* annoying, but necessary expenses? This includes insurance, home loans, phone plans and even energy bills. All you have to do is simply shop around and compare insurance.
Better rates are out there – and the potential savings are quite insane. We’re talking thousands of dollars in some instances.
How to save $1,140 per year
Recent YouGov research found that Australian households that do a bit of research and make the switch to cheaper providers saved an average of around $1,140 last year. By not switching, you could be losing out on around $1,000 in extra savings each year.
The research, commissioned by iSelect uncovered that savvy Aussie households who took the time to switch collectively saved around $3.9 billion on their household bills and expenses by changing providers and/or plans during the past 12 months.
Why switching can save you so much
Sophie Ryan, iSelect spokesperson explains that premiums increase every year and often customers who remain loyal to their current provider and don’t shop around get stung with ‘loyalty tax’.
Often there are cheaper plans out there, but, if you’re not asking for them, your current provider won’t be offering them up.
In many instances, providers offer better rates/premiums to attract new customers than what is available to their existing customers. Sneaky sneaky.
“We understand that life is busy but in the current economic climate, every dollar counts, and any lost savings found are arguably even more valuable than ever,” Sophie said.
“Make sure you know exactly when your policy is going up in 2023 and how much more you’ll be paying. Premiums are increasing by an average of 2.90 percent [health insurance in particular] this year, but some funds will go up by more and others less, so we encourage Aussie households to review their cover to try and save ahead of these changes.”
How much can you really save when you compare insurance?
Every household is different but according to the YouGov research, here are some average savings across Australia:
- Switching your home loan/mortgage – SAVE $1,595 a year (WHOA!)
- Switching your home and contents insurance – SAVE $337 per year
- Switching your car insurance – SAVE $331 a year
- Switching your pet insurance – SAVE $416 a year
- Switching your health insurance provider – SAVE $520 a year
- Switching your life insurance provider – SAVE $698 a year
- Switching your internet provider – SAVE $587 a year
- Switching your gas provider – SAVE $279 a year
- Switching your electricity provider – SAVE $394 a year
You can view the whole report and start your search for Lost Savings at iSelect.
These savings are pretty insane when you look at the numbers and will make a massive difference to your budgeting and hopefully your savings account.
Saving even $500 a year can make a big difference. It could mean a weekend away, an upgrade to the house or a few special treats for the kids come Christmas time.
How to find a better deal
Compare and save
Your quickest and easiest option is a comparison service such as iSelect. This is a really simple platform to use and one of the most trusted ones in Australia. They can also find out a better deal/lost savings across so many platforms including insurance, utilities, home loans, and personal finance products.
One of the things we really like about it is when you find a better value plan, they take care of making the switch so you don’t have to deal with contacting your current provider and new provider – they do it all. You get the peace of mind that you’re getting the best deal out there but without any stress or time wasted.
Make it part of your yearly tasks to review your plans/policies before you renew. As mentioned, insurance premiums increase every year and often the best-value deals are reserved for new clients, not existing ones.
Another thing to consider is how things change over the year, including your needs and circumstances. You may be driving less or working from home a bit more. You may have upgraded the home to make it less of an insurance risk or purchased something big that may change your contents plan.
Saving money and making the switch doesn’t have to mean compromising your level of cover. It simply means switching to a similar level of cover with a different fund for a cheaper price.
To get started, head to iSelect.
How to save even more $$$ this year
Although we’re already one-third of the way into the year, it’s not too late to set a “savings goal” for 2023 and reach it. Your first port of call is to shop around and compare insurance, but here are other easy ways to save.
Start a money challenge
There are a few different ones including:
THE $5 OR $2 CHALLENGE – Simply hold on to every $5 note that comes your way for the entire year. You can also do this with $2 coins. Place them into a 600ml coke bottle and, once filled, you should have $1,000.
THE 52-WEEK CHALLENGE – This is a yearly challenge but you can start a bit late this year. Every week add a certain amount, starting at $1 all the way to $52 to a jar. You can count backward, go forwards or do it Bingo-style at random.
THE 5K CHALLENGE – Start by placing the numbers 1-100 on a piece of paper and gluing it to a jar. Every time you put that amount into the jar, cross the number out. Once all the numbers are crossed out, you’ll have saved $5,050.
Spending money is part of life but there are ways you can save on your weekly expenses such as groceries, fuel, birthday gifts and more.
For groceries, Woolworths and Coles both have great rewards programs. For entertainment, BookMe offers some great deals and the Fair Fuel Finder app is great for comparing the cheapest fuel around you. Other great money-saving apps include Honey, CashRewards and ShopBack.
Try allocating a budget to different categories
This works for some households but you’ll need to stick to it! Allocate a certain amount for different things every month such as groceries, fuel, entertainment, self-care, sports fees, school fees, etc.
Just be sure you also include a MISC category just in case something pops up during the month like a kid’s birthday party invitation or an emergency trip to Kmart!
Challenge yourself to once-a-month takeaway only
For some families, this will be a piece of cake. But for families that tend to do a once-a-week takeaway night (cook-free Friday we call it), this can be tricky. However, by reducing your family’s takeaway to once a month, rather than weekly, you could be saving around $2,000 a year.
What to read next
- 48 Clever Money-Saving Hacks and Tips
- How to Save Money on Groceries
- 38 Insanely Clever Money-Saving Tips
*iSelect does not compare all products in the market. The availability of products iSelect compares may change from time to time. Not all products made available from iSelect’s providers are compared by iSelect and due to commercial arrangements, area or availability, not all products compared by iSelect will be available to all customers. Some products and special offers may only be available from iSelect’s call centre or website. Click here to view iSelect’s range of Providers.
*Source: iSelect commissioned YouGov Galaxy Pty Ltd to conduct a national online survey between 8 December and 13 December 2022. The sample is n=2,000 Australian sole/ joint household decision-makers aged 18 years and older. The survey results were weighted by state and household size and projected to all Australian households based on the population data published by the ABS using the latest Census conducted in 2021.
This is a sponsored post for iSelect