Get the Best Deal

Savvy spenders know to use comparison sites for many personal finance and related services, but making the most of such sites isn’t always easy. Here are some top tips for getting the best deal while saving time.

INSURANCE

Insurance is arguably the king of the comparison site, thanks to years of memorable ad campaigns. Getting comparisons makes sense for most forms of insurance, whether you’re a first-time customer or your policy is coming up for renewal. It doesn’t just save time going to individual sites, but reduces the need to keep typing in the same details about the cover you require. Counter-intuitively, it can make sense to try multiple comparison sites rather than just one. Both the policies and prices on offer can differ slightly across different comparison tools, so a little extra time could get you a better deal. The good news is that once you’ve run a search on a site, it will usually store your details and send you a reminder next year, letting you run a new search without having to type everything in again. It’s also worth checking insurers that make a point of not being available through comparison sites, most notably Direct Line, as they may have better deals. If you’ve got even more time to spare, check out cashback sites. You’ll need to check terms and conditions carefully, and be certain what you are signing up for, but they can work out to be a better option when you crunch the numbers. Occasionally you may get a cashback bonus that makes it a better option than going for a cheaper base price through a standard comparison site. On the other hand, don’t get too caught up in comparison sites that offer deals such as cheap cinema tickets or meals out. These often have tight restrictions and you may overestimate how much use you’d actually make of these ‘rewards’. Think of them more as a tiebreaker if two sites have similar prices for a policy.

UTILITIES

Sadly, gas and electricity supply is no longer an area where price comparison tools have much purpose. At the time of writing, the cost of wholesale gas (which also affects electricity production costs) is so high that suppliers have little incentive to offer deals cheaper than the government-imposed price cap. Without a crystal ball it’s impossible to predict future price movements, but it’s hard to see any supplier offering a sustainable fixed-price deal that’s below the price cap any time soon. The only real exception is power supplies to businesses where, unlike with consumers, there’s no price cap. Using a specialist business energy-comparison tool still makes sense.

BROADBAND, TV, MOBILES

One area where people may overlook comparison tools is broadband, television and mobile phone

services (particularly for those who own a handset outright). If you get your internet through a phone line rather than a cable network such as Virgin, you should be able to switch supplier with virtually no disruption, so even a small saving can be worthwhile. Specialist comparison tools work particularly well with premium TV services, which can be confusing to navigate. Both Sky and BT offer channels in some form through their own TV provision, through Virgin cable, and through streaming-only deals, so comparing all the options can be much simpler via comparison sites.

MORTGAGES

Mortgages may seem like an obvious area for comparison sites, but they usually aren’t a perfect option. That’s because whether a particular provider will offer a loan, and on what terms, will vary significantly between individual customers. It’s certainly worth checking out a couple of price comparisons, but think of them more as a rough guide to whether buying a property in your desired price range is affordable rather than a way to choose a deal. In many cases, using a mortgage broker makes sense, particularly if you have any special circumstances such as a poor credit history or being self-employed. A good mortgage broker won’t just look at prices but will also give you a much better idea of which lender will be likely to accept or reject you. This reduces the risk of a vicious circle where a failed mortgage application means you have multiple credit checks on your credit record in a short period, each making you less attractive to lenders.