Households warned about 10 services they’re probably overpaying for

Families have been offered expert tips on how to transform their finances and stop overpaying for ten common items and services. 

Personal finance experts at price comparison site Tiger.co.uk have revealed how UK households could save hundreds of pounds a year by reviewing their budgets and making simple changes to their outgoings. 

With a high rate of inflation and the cost-of-living crisis continuing to strain household budgets, cutting back on unnecessary spending has become more important than ever. 

Energy bills, grocery costs, and mortgage payments have surged, leaving many families looking for creative ways to stretch their income.

As a result, recent research by the Office for National Statistics (ONS) revealed that around 60 per cent of adults are spending less on non-essentials because of cost of living increases, and around a third of adults are finding it very or somewhat difficult to afford their rent or mortgage payments.** 

With households facing these challenges, even small savings can make a significant difference. 

Yet many people are unaware of just how much money they are overspending on everyday products and services, often out of convenience or habit. 

From letting insurance policies auto-renew to sticking with outdated phone contracts, these seemingly small decisions can add up to hundreds of pounds a year in extra costs.

Savings expert and Managing Director at Tiger.co.uk, Ian Wilson, said: “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.

“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.

“The key is for households to be proactive and take control of their spending. That means reviewing all regular outgoings, looking for better deals, and not letting contracts or policies auto-renew without checking if there’s a cheaper alternative. Even small changes now can add up to substantial savings over time.”

Here are ten things your household might be overpaying for: 

1. Extended warranties

Retailers often upsell extended warranties on electronics and appliances, preying on fears of things breaking down. However, most products already come with sufficient coverage through consumer protection laws or manufacturers’ guarantees. For example, under the UK Consumer Rights Act, you may be covered for up to six years if the product is faulty*. Many credit card companies also offer purchase protection on electronics, so check if you’re already covered before buying extra protection.

2. Gym memberships

Many people sign up for expensive gym memberships but don’t go regularly enough to get value for money. Consider whether you use the gym enough to justify the cost. If not, look for cheaper options like community gyms, budget-friendly chains, or free outdoor workouts. Online workouts and fitness apps can also help you stay fit without the additional spend.

3. Insurance add-ons

People often buy add-ons like gadget insurance 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 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 provider, 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 add up, especially when people forget to cancel unused subscriptions. Regularly review all your subscriptions and cancel anything you no longer use or downgrade to lower tiers if you don’t need premium services.

7. Train tickets

UK train fares can be notoriously expensive, especially if tickets are bought last-minute or during peak hours. People often miss out on discounts or cheaper travel options, so it’s important to plan ahead and book train tickets as early as possible, as advance fares are often significantly cheaper. Use railcards to get 1/3 off fares and for frequent travel, consider season tickets or split ticketing (buying separate tickets for different legs of the journey), which can be cheaper than buying one through ticket. Apps can help find the best deals, and travelling off-peak or with flexible tickets can also save money.

8. Car insurance renewal

UK drivers often let their car insurance policies auto-renew each year without shopping around for a better deal, leading to inflated prices. Always shop around before your policy is due to renew. Use comparison sites to find cheaper deals, and don’t be afraid to negotiate with insurers. Paying annually instead of monthly can also save money and purchase 15-24 days before your car insurance is due for renewal to save 33-45%.

9. Online delivery fees

Regularly paying for delivery fees on online orders can add up over time, especially for small, frequent purchases. You could save money in the long run by signing up for delivery passes if you frequently order from the same places. Alternatively, bundle your orders to meet free delivery thresholds.

10. Car maintenance and repairs

Many people trust initial quotes from dealerships or garages without comparing prices, potentially leading to inflated costs for routine maintenance or repairs. Instead, shop around for quotes before committing to repairs. Independent garages are often cheaper than dealerships and for routine services like oil changes or MOTs, use price comparison websites or apps to find cheaper options. Regularly maintaining your car can also prevent costly repairs down the line and helps ensure your car insurance stays valid.

Tiger.co.uk helps real people compare and find real savings. 

References:
*https://www.citizensadvice.org.uk/consumer/somethings-gone-wrong-with-a-purchase/claim-using-a-warranty-or-guarantee/
**https://www.ons.gov.uk/economy/inflationandpriceindices/articles/costofliving/latestinsights

---

This article is intended as generic information only and is not intended to apply to anybody’s specific circumstances, demands or needs. The views expressed are not intended to provide any financial service or to give any recommendation or advice. Products and services are only mentioned for illustrative rather than promotional purposes.