IN THESE recessionary times, it should not need to be said. But shopping around and comparing prices can save you a heap of money. And, with Christmas approaching, we can all do with a little bit more of that commodity.
Just the other day, Financial Regulator Mary ODea published figures that showed a difference of €400 between competing quotes on the cost of insuring a home. Home insurance may be one of the largest annual bills, but considerable savings can also be made on other forms of insurance, be they house contents, health insurance, holiday or motor cover.
Financial institutions of all kinds rely on the laziness of their customers to protect their profits. People are resistant to change. Unless something upsets them, they tend to stay with their existing servers. But if phone calls are not made and concessions sought, premiums will not normally come down. And they may gradually edge up. That is why it is important to seek at least two quotes for all major insurance renewals. You may be getting good value from your current supplier, but you will not know it for certain unless you shop around.
It is not just a case of asking for basic quotations. Some insurance companies offer special discounts for having smoke alarms, for first-time owners, for being claims-free for five years and for being non-smokers. Special offers are also available for combined home/ motor insurance or for buying policies online. It is important that all of these aspects be explored - along with the fine print of cover being provided - before deciding on a major expense. You are the one paying the piper. So you should call the tune.
By shopping around, you will also contribute to the coming economic recovery. The past decade saw a rapid rise in living standards. Consumers became soft and complacent and threw their money about, paying over-the-odds for inadequate services. At the same time, feather-bedding and waste developed within many companies. Competitiveness was eroded. In the coming months, that process is likely to be reversed as companies attempt to cut costs and increase productivity.
It is unfortunate that this necessary exercise should take place during a recession, when people are already hurting. But the quicker the problems are addressed, the sooner viable jobs will be created. An increase in competitiveness will be a vital ingredient in our economic recovery. That means reducing costs, all kinds of costs. So, help the recovery and shop around.