Have you ever renewed your car insurance without shopping around? Had the same electricity supplier for years? Been with the same mortgage provider for more than three years?
Chances are, you’re paying the lazy tax…
You see, the companies that provide these services know that most people are inherently lazy when it comes to this sort of thing. Most of us won’t bother shopping around and will just pay the renewal price, whatever it might be.
Take car insurance, for example. When choice.com.au did a survey of leading insurance providers, they found that:
One-third of the insurers we surveyed admitted that, all other factors held constant, premiums for renewal will be higher than premiums for new business. This is essentially the price consumers are paying for their reluctance to switch – or to put it more harshly, a lazy tax.
On the other hand, those same companies are falling over themselves to attract new business. They’re banking on the fact that once they’ve got you, you’ll stick with them long enough to claw it all back, and more:
So What’s The Deal With This Site Then?
This is the story of an average guy’s challenge to himself to try to beat the lazy tax…
Hi there, I’m Matt. I’m an expat Brit living in Melbourne Australia. I like to think I’m a pretty savy consumer — I try to remember to shop around whenever something comes up for renewal — but I’m sure that there is more I could do. I’ve started this blog as a way of publicly committing to the cause of beating the lazy tax.
I’m going to document my attempts to get the best possible deal on, well, everything.
And maybe it might inspire a few other people to try it too.
Woah. Sounds Like A Lot Of Work…
Well, yes and no. I mean it is obviously more work to shop around for a better deal than to not shop around, but if a five minute phone call can save you $100, I’d consider that a good return on investment. My day job certainly doesn’t pay me $100 for five minutes work, and (if you’re reading this) I’m guessing yours doesn’t either.
Also, once you start, it is kind of addictive…
So This Is About Saving Money? Living Frugally? That Sort Of Thing?
It’s not about living like there’s a war on. I’m not about to start boiling down soap or washing my windows with vinegar (well, not yet, anyway…)
On the other hand it’s not about the “savings” you get from buying something you didn’t need just because it was on sale.
This is just about doing all the same things I was going to do anyway, but trying to do them as cheaply as possible.
But I’m Not In Australia, Can I Join In The Fun Too?
While the specific deals and companies that I’m going to talk about are obviously going to be most applicable if you are living in Australia, the strategies — always shop around; never pay the renewal price; call up and ask for a better deal — should work wherever you are, given that humans are just as lazy no matter where they live (and there are service providers the world over that are only too happy to take advantage of that).
So This Is Financial Advice, Then? I Should Copy Everything You Do?
Woah. Hold on there for a second hypothetical reader. Would you jump off a bridge because some guy on the internet told you to?
I am not a financial advisor. I don’t hold an Australian Financial Services Licence. This is just one man’s story of trying to get the best deal possible.
Clearly you should do your own research and make your own decisions before buying any finanical product…
Ok. I’ve Got It…
Great. Are you sitting comfortably? Then let’s begin…