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Daily Mirror
Daily Mirror
Business
Levi Winchester

Warning for households hit by £441 bills rise - how to cut your costs NOW

Households are forking out £441 more on average on three common bills as the cost of living crisis continues to bite.

Comparison website Uswitch estimates monthly broadband bills have increased on average by £18.50 and mobile phone payments by £9.50.

This adds up to £222 over the year for broadband and £114 for mobile.

It comes after millions of customers were hit by price hikes of up to 17.3% in April due to inflation-linked mid-contract rises.

Separately, drivers are also paying £105 more on average for car insurance, according to Compare the Market.

An annual car insurance premium for motorists was £651 in March 2023 -compared to £546 for the same month in 2022.

Compare the Market said this figure is based on an overall average, having taken into account different age ranges.

Younger drivers aged 16 to 24 paid significantly more, £1,464 on average in March 2023, compared to those aged 65 to 79, who paid £299.

How to cut your broadband and mobile bill

The first thing you should do, is compare prices elsewhere using a comparison website to see what other deals are available.

Take a look at how many minutes, texts and how much data you currently use, so you can find similar plans that suit your needs.

For broadband, look at your current speed and if you need this fast of a deal.

You may find you're actually paying too much right now for allowances or speeds you're not using.

If you've found a cheaper deal, you can switch to this if you're out of contract. Alternatively, you may want to haggle down your current provider.

When haggling, explain the better deals you've seen elsewhere then ask if the company can match or beat that price.

There is no harm in trying to haggle if you're still mid-way through your deal - but if this fails, make a note of when your contract ends so you know when to go back to your provider.

The best time to try and negotiate a better deal is near the end of your contract or, in some cases, when a price rise has been announced.

You may be able to leave penalty-free when a mid-contract price rise is announced, although not if the price rise was already written into your contract.

Ernest Doku, telecoms expert at Uswitch.com, said: “If you’re out of contract, you don’t have to accept any of these price rises. Not only can you switch to a potentially faster and more suitable plan right away, you could also pay less per month.

“If you’re still mid-contract, it’s really important to know when your contract is coming to an end. Not only can you avoid overpaying, you can also plan ahead, shop around and avoid getting sucked in by the promise of an upgrade.

“If you are happy with your current provider, it’s still worth doing your research and comparing the latest deals. There’s often room for negotiation - and significant potential savings - if you’re satisfied with their service.”

How to cut your car insurance bill

Car insurance is a legal requirement in the UK and has to be renewed yearly.

The three main types are: third party, third party fire and theft, and fully comprehensive.

Again, you should use a comparison website to check for the best deals when your current policy is coming to an end.

Once you've found the cheapest price, you can either switch or try to haggle down your current provider.

MSE says the best time to start looking for car insurance is 23 days before your current policy expires.

You should also see if you'd be eligible for cashback on your insurance policies on sites such as Topcashback and Quidco.

Julie Daniels, motor insurance expert at Compare the Market: "Drivers will be worried that the cost of car insurance is accelerating.

“Our research shows motor premiums have increased by up to 19% year-on-year. For drivers aged over 55, there is a particular tendency to stick with their existing provider each year.

“However, due to the steep increases in prices year on year, it’s now more important than ever for people to shop around and compare prices to check you’re getting a great deal.”

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