‘I’m a savings expert – 10 things you’re overpaying hundreds of pounds a year for’ (Image: Tiger)
Britons are overspending by “hundreds of pounds a year” on everyday expenses – and they may not be aware of it.
While inflation is easing, the cost of living still feels more expensive than ever before. Around 60% of adults are spending less on non-essentials due to price increases, and around a third of adults are finding it “very” or “somewhat” difficult to afford their rent or mortgage payments, according to research by the Office for National Statistics (ONS).
With households facing these challenges, even small savings can make a significant difference.
From letting insurance policies auto-renew to sticking with outdated phone contracts, these seemingly small decisions can add up to “hundreds of pounds a year” in extra costs, Ian Wilson, savings expert and managing director at comparison site Tiger.co.uk has warned.
Mr 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.
Britons are overspending by “hundreds of pounds a year” on everyday expenses (Image: Getty)
“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.”
Mr Wilson emphasised that the key for households is to be proactive and take control of their spending.
He explained: “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.”
Mr Wilson has shared 10 things households might be unaware they’re overpaying for.
Britons are advised to shop around before car insurance policies are due to renew. (Image: Getty)
Extended warranties
Retailers often upsell extended warranties on electronics and appliances, preying on fears of things breaking down.
However, Mr Wilson noted: “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.”
Car insurance renewal
Drivers in the UK often let their car insurance policies auto-renew each year without shopping around for a better deal, leading to inflated prices.
Mr Wilson urged: “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 to 24 days before your car insurance is due for renewal to save 33 to 45%.”
Gym memberships
Many people sign up for expensive gym memberships but don’t go regularly enough to get value for money.
Mr Wilson said: “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.”
Many people sign up for expensive gym memberships but don’t go enough to get value for money (Image: Getty)
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, Mr Wilson said: “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.”
Bank fees
Mr Wilson warned that “hidden” fees for overdrafts, account maintenance, or international transactions can add up quickly, especially if people aren’t aware of them.
He suggested: “Switch to a bank that offers fee-free accounts or set up alerts to monitor your balance and avoid overdraft charges.”
Mobile phone contracts
Many people are locked into long-term contracts with their mobile providers, which normally leads to them paying for more data, minutes, or phone features than they actually need.
To save money, Mr Wilson suggested people review their usage and compare it to their plan. He said: “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.”
Subscription services
Streaming services, digital magazines, fitness apps, and subscription boxes can add up, especially when people forget to cancel unused subscriptions. Mr Wilson said: “Regularly review all your subscriptions and cancel anything you no longer use or downgrade to lower tiers if you don’t need premium services.”
Train tickets
UK train fares are notoriously expensive, especially if tickets are bought last minute or during peak hours.
Mr Wilson said: “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.”
Additionally, people can use railcards to get 1/3 off fares, season tickets or split ticketing, which means buying separate tickets for different legs of the journey, can be cheaper than buying one through ticket.
Mr Wilson said: “Apps can help find the best deals, and travelling off-peak or with flexible tickets can also save money.”
Online delivery fees
Regularly paying for delivery fees on online orders can add up over time, especially for small, frequent purchases.
Mr Wilson suggested: “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.”
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, Mr Wilson said: “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 help ensure your car insurance stays valid.”
