Switch and save: 10.8 million Australians sick of paying the lazy tax

21 January, 2019, Sydney, Australia – The new year is a time for many Australians to reevaluate their finances, and millions will be kicking providers to the kerb, according to new research by Finder, the site that compares virtually everything.

The survey of 2,010 revealed that 56% of Australians – equivalent to 10.8 million adults – are sick of paying too much for financial products and pledging to switch at least one this year.

Ahead of insurers and banks, Aussies are most likely to switch phone providers, with 3.5 million looking to ditch their telco this year.

Health insurance (17%), car insurance (16%), energy plans (16%) and broadband internet (14%) round out the top five switches that Aussies will be pursuing in 2019.

Angus Kidman, editor-in-chief at Finder, says saving money is at the forefront of many people's minds after the festive season.

“Cost-cutting is the main reason householders will jump ship, and it can result in huge savings.

“For a family under pressure, every dollar counts.” he said.

Generation Y (those aged 24-38) are much more inclined to switch, with 70% keen to find a better deal in 2019, compared to just 41% of Baby Boomers (those aged 59 and above).

Kidman said providers have been put on notice.

“More Australians are shopping around than ever before and they’re looking for the best deals.

“There could be a better deal for your personal situation, so make sure you shop around,” Kidman said.

Perhaps not surprisingly, Australians are least likely to shop around for super funds. Just 7% admit they will look for a better deal in 2019.

“Many Australians don’t know a lot about superannuation but it could be the service ripping you off the most.

“From exorbitant fees and low returns to lacklustre insurance offerings, your super could be quietly costing you hundreds if you aren’t on top of it,” he said.

Interestingly, parents are twice as likely (14%) to consider switching a home loan than those without kids (7%).

“Parents know that every dollar counts, so it’s not surprising that they're more likely to shop around for their biggest investment,” he said.

Which of the following are you planning to switch in 2019?

Source: finder.com.au, Dec 2018

Top tips to help you switch and save:
Car Insurance: Know when to switch. Timing matters when switching insurers, especially car insurance. The best time to make a change is when your current policy is coming up for renewal, as this will get you the most value out of your old policy and you won’t incur cancellation fees.
Mobile Providers: There are more than three players. While Telstra, Optus and Vodafone dominate the conversation because they own the networks, there are more than 30 other providers with access to those networks that can offer great deals on both prepaid and postpaid plans.
Superannuation: Don’t forget to consolidate your accounts. If you’re switching super, it’s a good time to take stock and make sure you roll all your super accounts into the one fund. If you have an old account open, it can quickly be eaten up in fees.
Health Insurance: Check the waiting periods. If you are aiming to switch providers and increase your cover, you may have to serve new waiting periods. For example, if your new policy covers pregnancy but your old one didn't, you'll have to wait for that particular cover to be active.