‘Power switching’ leads to billions in savings

Irish households can together save almost €2 billion each year by switching key services, with individual “power switchers” saving €1,200 annually, according to a survey.

The Permanent TSB Switching Index said people saved up to €1.8 billion last year by shopping around, with people most likely to seek out better deals on car insurance, mobile phones, broadband and electricity. People remain reluctant to switch financial products despite possible savings in excess of €100 a year.

“There is huge potential for consumers to save hundreds of millions of euro by switching service providers, yet despite this potential many Irish consumers remain reluctant to switch,” said Gerard O’Neill of Amárach Research which compiled the data used in the index.

“On one end of the spectrum, two-thirds of us have switched car insurance providers, while at the other end, just over one in four have switched banks,” he said.

The Switching Index also points to the rise of the “power switcher” – a new breed of financially savvy consumer, who saves more than €1,200 a year by switching providers. It says one in six Irish consumers are now classified as a power switcher, with men more likely to shop around.