Yahoo Finance Aussies warned over ‘auto-renew’ payment feature
Aussies struggling to keep up with rising costs can make significant savings.
Aussies are potentially losing out on thousands of dollars by setting and forgetting their subscriptions and services, according to new research.
Around two in three (67 per cent) Aussies – equivalent to 13.6 million people – have set at least one of their services to auto-renew in the past 12 months, according to a Finder survey of 1,090 respondents.
That’s despite more than half (54 per cent) saying they had been slapped with an unexpectedly high bill in the past year.
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The services most Aussies were hitting the auto-renewal button on were car insurance (39 per cent), mobile phone plans (36 per cent), and streaming subscriptions (35 per cent).
Finder insurance expert Gary Hunter said it was shocking how many Aussies could be missing out on a better deal.
“Complacency rarely pays off in life, and it’s no different with your finances,” Hunter said.
“Regularly shopping around and comparing providers at least every 12 months should be second nature – not just when you first get the product.
“Prices can change and differ a lot. Our Finder Awards research found a difference of $1,456 per year between the cheapest and most expensive comprehensive car insurance policy.”
One third (33 per cent) of Aussies were vigilant in the past 12 months, comparing their services before renewing.
Baby Boomers were the most likely of all generations to compare services before renewing (35 per cent), while Gen Z were the least likely to do so (29 per cent).
The research found 28 per cent of Australians had auto-renewed their home insurance policy in the past year, while one in four (24 per cent) had done so with their health insurance.
Hunter said now was the right time to tackle your expenses.
“Remember, loyalty doesn’t pay – the best-value service or policy today might be more expensive when it renews next year,” he said.
“You could save hundreds by switching providers. It’s also a good idea to start a budget if you haven’t already. If you don’t know where your money is going and how much your essential expenses cost, it’s hard to know how much you can save.”
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