New research by the comparison site Gocompare.com has revealed that although 61 per cent of consumers are expecting 2011 to be a very difficult year financially, over 12 million** of them have never switched any of the 20 most common financial products including car insurance, home insurance, energy provider, credit card or mortgage lender.
13.8% of consumers have NEVER switched their home insurer. This is interestingly juxtaposed to the fact that 81 per cent of Brits are hoping to save money this year with 22 per cent citing bills and the rising cost of living as their biggest financial worry for 2011.
Other consumers are being proactive in trying to save cash by comparing the deals on their financial products, ditching uncompetitive providers and switching to companies offering better value for money. In fact, 26 per cent of consumers switched their home insurance provider in the last year which means up to 19 million* households could be paying too much to protect their home and belongings. In 2010 Gocompare home insurance customers saved, on average, over £238.22*** by switching their buildings and contents insurance after comparing policies from over 70 different insurers and brokers.
John Miles, business development director of Gocompare.com, said: "4 out of 5 Brits are hoping to save money this year but unfortunately insurers, energy providers, and lenders aren’t in the habit of voluntarily giving better deals to loyal customers so it’s up to consumers to shop around. Thankfully comparison sites now make it easier than ever to quickly compare and switch a wide range of financial products so if consumers have access to the internet a few minutes spent managing their money could save them a packet in 2011."
* According to the Office for National Statistics there are 26.1 million households in the UK. 73.6% of people have not switched home insurer in the last 12 months. 73.6% of 26.1 million is 19.2 million and 90% of people who have not switched their energy provider equates to 23.49 million.
** The UK Adult population (+18) is estimated to be 47,755,246, according to Experian’s Demographic Summary). 25.9% of survey respondents have not switched providers for any of a list of top 20 financial products. 25.9% of 47,755,246 is 12,368,608
*** Based on online independent research by Consumer Intelligence from 01 November 2010 to 30 November 2010. 10% of Gocompare.com customers could achieve this saving.