Households could save hundreds on their household bills if they shop around and switch to a better deal for their energy, home and car insurance, according to new research.
A typical household spent £2,527 on energy, home and motor insurance during 2020 – falling from £2,702 in 2019, according to analysis switching data from Compare the Market, with average annual costs falling by £174 during the past year.
Most of the savings are a result of reduced energy bills, with prices going down by £171 over the year. The average household energy bill is now £1,631, down from £1,803 in 2019.
This reverses the trend of rising energy bills over the past few years. The fall is probably due to suppliers passing on some of the savings from a decrease in wholesale energy prices. There was reduced demand for energy during national lockdowns in 2020, even though more people were staying at home.
Meanwhile, the average cost of motor insurance fell by just £10 compared to 2019 and is £724 – the lowest it has been since 2016.
In contrast, the average cost of home insurance has steadily risen over the past five years to £172 a year – up by £7 year on year. In 2015, the typical cost of home insurance was £131.
Londoners pay more but save most from switching
Londoners pay significantly more than other regions for their household bill each year. If you live in Greater London, average household bills are £2,890 a year – £363 more than the national average. This compares with annual bills of £2,244 if you live in South West England, where bills were cheapest.
Switching to top deals for energy, home and motor insurance could save you £367 on energy bills, £21 on home insurance and £105 on car insurance – £494 a year in total.
If you live in London, you can cut your bills by as much as £580 a year.
How can I cut my insurance and energy costs?
- Always shop around for the cheapest deal. Get a home insurance quote or compare cheap car insurance quotes from over 100 UK providers and you could save over £280 a year.
- Consider locking into a fixed-rate deal for your energy. Visit energy regulator Ofgem for details on how to switch to a cheaper energy supplier.
- For quick tips on saving energy, visit the Energy Saving Trust. For instance, turning your thermostat down could save you £60 a year, while turning off standby appliances at the plug could save you £35 annually.
Disclaimer: All information and links are correct at the time of publishing.BACK TO BLOG HOME