How six phone calls can save you more than $6000

Millions of Australians are paying too much for their loans, insurance and other household bills. Here’s a simple solution.

Picking up the phone can be a ticket to thousands of dollars of savings this year.

Targeting debt, insurance and phone costs can save a household $6303 in 2021 through calling their loan and bill providers to request better deals, according to research group Canstar.

It crunched the numbers on common household expenses and found:

• A typical home loan customer who switches from the average variable rate of 3.3 per cent to a low rate of 1.99 per cent could save $3312 annually, based on a $400,000 mortgage.

• Credit card customers paying the average card interest rate of 16.91 per cent could save $426 in a year by switching to a card with the lowest rate of 5.95 per cent.

• Comprehensive car insurance cost savings of $806 are available by switching from an average premium to a lower-cost quality product.

• Switching health insurance from an average family policy costing $3478 to a quality lower-cost product can save $922 a year.

• Similarly, home and contents insurance savings of $506 can be made when swapping an average policy for a lower-cost quality policy.

• Switching a SIM-only phone plan from the average price to lowest-priced option can save $331.

Canstar’s Steve Mickenbecker says there is no reward for lethargy.

Canstar’s group executive of financial services, Steve Mickenbecker, says research is vital.

“If you don’t do your research you won’t get anywhere near the $6000 outcome,” he says.

“Phone your provider and say ‘I know I can get my insurance policy for $806 less – what can you do for me?’ They might come to the party. If they don’t you would probably have to shift.”

Mickenbecker says businesses won’t volunteer to give up some of their profits so you get a better deal.

“You must do something about it … there’s no reward for lethargy,” he says.

A new report by Reviews.org calculated Australians spend more than $139,000 on mobile phones, internet and streaming during their lifetime.

It says combining individual phone accounts into a family plan can be another way to lower monthly bills.

“One way you can save on mobile bills is to hold off on upgrading to the newest phone, or check online to see if you can find a cheaper plan,” says Reviews.org spokeswoman Victoria Schmid.

“There are a lot of competitive prices out there right now.”