Comparing Providers for Utilities and Insurance

Understand Why Comparing Providers Is Important

Comparing providers is essential for getting the best value for your money. Let’s break it down:

Reasons to Compare Providers:

Save Money:

• Providers offer different prices for the same service. Comparing ensures you’re not overpaying.

• Example: Switching to a new electricity provider could save you £200 a year.

Better Services:

• You might find a provider with better customer service, faster broadband, or green energy options.

• Example: A broadband provider offering 50 Mbps for the same price as your current 30 Mbps plan.

Avoid Loyalty Penalties:

• Staying with the same provider often leads to higher charges. Comparing regularly helps you avoid this.

• Example: A car insurance renewal might cost £400, but a competitor offers the same coverage for £300.

Useful Resources:

• Citizens Advice: Free guidance on switching providers. Visit www.Citizensadvice.org.uk.

Decide What You Want to Compare

Identify the services you want to compare.

Utilities:

Gas and Electricity Providers:

• Example: Compare the cost per unit of energy and standing charges.

Broadband Providers:

• Example: Look at speed, reliability, and data limits.

Mobile Phone Contracts:

• Example: Compare monthly costs, data allowances, and handset options.

Insurance:

• Car Insurance: Comprehensive, third-party, or third-party fire and theft policies.

• Home Insurance: Buildings, contents, or combined policies.

• Travel Insurance: Single trip, annual, or backpacker policies.

• Health Insurance: Private medical cover for treatments and hospital stays.

Gather Information About Your Current Services

Before comparing, collect key details about your current services.

Utilities:

Energy Usage:

• Check your energy bill for your annual usage in kilowatt-hours (kWh).

• Example: You used 3,500 kWh of electricity and 12,000 kWh of gas last year.

Current Tariff:

• Find the name of your current tariff (e.g., "Standard Variable Rate") and its rates.

• Example: You pay 28p per kWh for electricity and 10p per kWh for gas.

Contract End Date:

• Note if you’re locked into a fixed-term contract. Leaving early might incur exit fees.

Broadband Speed:

• Use an online speed test tool (e.g., Speedtest.net) to check your current download and upload speeds.

Insurance:

Policy Details:

• Review your policy documents for coverage limits, exclusions, and excess amounts.

• Example: Your car insurance covers up to £10,000 in repairs with a £250 excess.

Renewal Date:

• Note when your current policy ends so you can switch or renew on time.

Claims History:

• Be prepared to share details of any claims made in the last 5 years.

Use Comparison Websites

Comparison websites make it easy to find and compare different providers.

Step-by-Step for Using Comparison Websites:

Choose a Reliable Website:

• Utilities:

  • Uswitch: www.uswitch.com

  • Compare the Market: www.comparethemarket.com

  • MoneySuperMarket: www.moneysupermarket.com

  • Insurance:

    • GoCompare: www.gocompare.com

    • Confused.com: www.confused.com

    • MoneySavingExpert: www.moneysavingexpert.com

Enter Your Information:

• Provide details like energy usage, postcode, and insurance requirements.

Review Results:

• Look at prices, customer reviews, and terms for each provider.

Check the Details:

• For utilities, review the unit rate (cost per kWh) and standing charge.

• For insurance, compare coverage, premiums, and excess.

Understand Key Terms

These terms are commonly used when comparing providers.

Utilities Terms:

• Tariff: The pricing plan for energy use (fixed or variable).

• Standing Charge: A daily fee for being connected to the network.

  • Example: You might pay 25p/day even if you use no energy.

• kWh (Kilowatt-Hour): A measure of energy use.

Insurance Terms:

• Excess: The amount you pay towards a claim before your insurer covers the rest.

  • Example: If repairs cost £500 and your excess is £100, you pay £100, and your insurer pays £400.

• Premium: The cost of your insurance policy, paid monthly or annually.

• No-Claims Bonus: A discount for not making any claims in a policy year.

Useful Resources:

• MoneyHelper: Explains financial terms and options. Visit www.moneyhelper.org.uk.

Compare Based on Your Needs

Let’s expand on how to choose the best provider:

For Utilities:

Cost:

• Compare the unit rate (cost per kWh) and standing charge.

• Example: Provider A charges 30p/kWh, while Provider B charges 28p/kWh.

Green Energy Options:

• Look for providers offering 100% renewable energy.

• Example: Octopus Energy offers green energy tariffs.

Customer Service:

• Check reviews on Trustpilot or Which? for provider ratings.

Exit Fees:

• Some fixed tariffs charge a fee if you leave early.

For Insurance:

Coverage:

• Ensure the policy covers what you need (e.g., accidental damage for home insurance).

Premiums and Excess:

• Choose a policy with affordable premiums and excess.

Add-Ons:

• Optional extras like breakdown cover for car insurance or accidental damage for home insurance.

Finalise Your Decision

Once you’ve compared providers, follow these steps:

Switch Utilities Providers:

• Sign up with your chosen provider. The new provider handles the switch, so you don’t need to contact the old one.

Buy an Insurance Policy:

• Ensure your new policy overlaps with your old one to avoid gaps.

Use Tools and Apps to Stay Organised

Recommended Apps:

• Uswitch: Tracks energy deals and usage.

• ClearScore: Helps monitor your credit score and financial health.

Seek Help If You Struggle

If you feel overwhelmed, reach out for support.

Who Can Help:

• Citizens Advice: Free advice on utilities and insurance. Visit www.Citizensadvice.org.uk.

• Energy Saving Trust: Helps you reduce energy costs. Visit www.energysavingtrust.org.uk.

• National Autistic Society: Offers support for managing money and services. Visit www.autism.org.uk.

Practice Self-Compassion

Take your time, and remember it’s okay to ask for help. Celebrate small wins, like narrowing down your options or completing your first comparison.

Final Thoughts

This guide ensures you have the tools, resources, and confidence to compare providers effectively and make informed decisions.