Families overpaying for 10 services they could save hundreds on with simple changes

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Families have been offered expert guidance on how to revamp their finances and stop overpaying for ten common items and services. Personal finance experts at price comparison site Tiger.co.uk have revealed methods in which UK households could save hundreds of pounds annually by reassessing their budgets and making minor adjustments to their expenditures.

As skyrocketing inflation and the ongoing cost-of-living crisis puts pressure on households, it's more important than ever to cut back on needless spending. Food costs, energy bills and mortgage payments have soared, leaving many families seeking clever ways to make their income go further.

Recent statistics from the Office for National Statistics (ONS) highlight that approximately 60% of adults are slashing their non-essential spending in response to rising living costs. Roughly a third are also struggling significantly with rent or mortgage payments.

Yet, scores of people remain unaware of just how much they're overpaying for everyday items, frequently due to the ease or force of habit. Simply letting insurance renew automatically or staying with out-of-date mobile plans, might be costing consumers dearly with added expenses running into hundreds each year.

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Amidst this backdrop, Tiger.co.uk's Managing Director and savings guru Ian Wilson has shared some top tips with the Express for those keen to pare down their expenditures amid the escalating costs of living. He stated: "With the high cost of living presenting more challenges than ever, many families are looking for ways to trim their budgets – particularly in the run-up to Christmas."

He further added: "People are still frequently paying more than they need to for everyday expenses, but the good news is that with a little extra planning and some savvy shopping, significant savings can be made – whether it's by switching to a more affordable mobile plan, cutting back on unnecessary subscriptions, or comparing prices for things like train tickets and car insurance."

Households may be overspending in these 10 areas:

1. Extended warranties often represent an unnecessary expense as consumer electronics and appliances typically come with sufficient manufacturer protection. The UK Consumer Rights Act may cover items against defects for up to six years, so he suggests checking your existing coverage before purchasing additional warranties.

2. Gym memberships are another area where consumers could save, according to Wilson. He advises considering how frequently you actually use the gym compared to the cost of the membership, as infrequent use may not justify the expense.

If not, think about more cost-effective options such as community gyms, budget-friendly chains, or free outdoor workouts. Online workouts and fitness apps can also help you stay fit without additional spending.

3. Insurance add-ons. People often buy add-ons like gadget or travel insurance without checking if they are already covered under their existing insurance policies or credit cards.

Before purchasing add-ons, check your existing policies or credit card benefits to see if you're already covered. For example, many credit cards include travel insurance and comprehensive home insurance, which often covers personal gadgets.

4. Bank fees: Hidden fees for overdrafts, account maintenance, or international transactions can add up quickly, especially if people aren't aware of them.

Switch to a bank that offers fee-free accounts, or set up alerts to monitor your balance and avoid overdraft charges.

5. Mobile phone contracts: Many people are locked into long-term contracts with their mobile providers, which normally leads to them paying for more data, minutes, or phone features than they actually need. If you want to save some money, review your usage and compare it to your plan.

If you're paying for a lot of unused data or minutes, consider switching to a SIM-only deal or pay-as-you-go option, which is often significantly cheaper. Check comparison websites to compare options.

6. Subscription services: Streaming services, digital magazines, fitness apps, and subscription boxes can all add up, particularly when individuals forget to cancel unused subscriptions. It's crucial to regularly review all your subscriptions and cancel anything you no longer use or downgrade to lower tiers if premium services aren't necessary.

7. Train tickets in the UK can be notoriously pricey, especially if purchased last minute or during peak hours.

Many people often overlook discounts or cheaper travel options, so planning ahead and booking train tickets as early as possible is key, as advance fares are typically much cheaper.

Utilise railcards for a third off fares, and for regular travel, consider season tickets or split ticketing (purchasing separate tickets for different parts of the journey), which can be more cost-effective than buying one through ticket. Apps can assist in finding the best deals, and travelling off-peak or with flexible tickets can also save money.

8. Car insurance renewal in the UK often sees drivers allowing their car insurance policies to auto-renew annually without seeking a better deal, resulting in higher prices.

Always shop around before your policy is due to renew. Use comparison sites to find cheaper deals, and don't hesitate to negotiate with insurers.

Paying annually instead of monthly can also save money, and purchasing 15-24 days before your car insurance is due for renewal can save between 33-45%.

9. Online delivery charges can quickly accumulate. Regular online shoppers may find themselves accumulating significant delivery fees over time, especially for small, frequent purchases. If you frequently order from the same retailers, it might be worth considering a delivery pass.

Alternatively, try to combine your orders to meet free delivery thresholds.

10. Car maintenance and repairs are another area where consumers can unknowingly overspend. Many people accept the first quote they receive from a dealership or garage without shopping around, potentially leading to inflated costs for routine maintenance or repairs. Instead, consider obtaining multiple quotes before committing to any work.

Independent garages often offer cheaper rates than dealerships, and for standard services like oil changes or MOTs, price comparison websites or apps can help you find the best deal. Regular car maintenance can also prevent costly repairs in the future and ensure your car insurance remains valid.

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