Why staying loyal to companies costs you money

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by: bythesea
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Word Count: 483
Date: Fri, 28 Jan 2011 Time: 7:40 AM
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It's human nature to stay loyal to the companies we buy goods and services from if we have a trouble-free transaction the first time around. In search of a less complicated life we tend to stick with what we know, often blissfully unaware that this unswerving loyalty is hitting us where it hurts the most - in our purses and wallets. With that in mind, here are five areas in which we can benefit from taking our custom to a competitor rather than just going with the flow:

Insurance providers
Essential cover such as car insurance and home insurance can be incredibly costly - and for all the wrong reasons. The fact is that once insurance companies have their teeth into you they're unlikely to offer you the same deal on a renewal quote that they would offer a new customer. For this reason, refrain from signing up to a Direct Debit with your insurance provider as this makes it all to easy to just let the renewal run through in subsequent years without a second thought. Use comparison sites every year without fail to ensure you get the best deal - this often means going with a different provider each time.

Banks
Bank accounts are one of the classic services that people tend to sign up for and then stick with for life, even though switching at certain times could mean a better return on their money. It pays to do research into the best available rates every now and again to ensure that your savings account is offering you a good level of interest. If not, have no hesitation in taking your custom elsewhere.

Breakdown cover providers
Similarly to insurance providers, those companies which offer breakdown assistance often charge existing customers a higher price than the introductory offers they give to new customers. If you can get a better deal elsewhere then jump ship - and be sure to let your existing provider know exactly why.

Garages
Just because a certain garage did a decent job on your vehicle when you last took it in for a once-over, don't assume that you can't get the same level of service elsewhere for a better price. Don't be afraid to shop around and try to get a quote in writing as work can sometimes have a habit of costing more than originally suggested - if that happens to you, provide the evidence and take them to task.

Supermarkets
Staying loyal to a supermarket can cost you dear over the course of a year. If you have competing stores nearby then split your shopping between them depending on their weekly offers; all supermarkets feature ‘loss leaders' to get you through their doors so take advantage of the deals wherever possible.

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The best savings advice from bythesea specialising in savings accounts, fixed rate bonds and offshore savings accounts