How and Why You Should Price Comparison Shop Utilities

Whether you rent or own your home, a large portion of your monthly housing budget probably goes toward paying your utilities. Utility bills like electricity, natural gas, water, sewer, trash, streaming services, and internet and phone bills, on average, cost Americans roughly $500 a month, according to a study by Move.com. 

These expenses can add up quickly and are something you want to be sure your monthly budget can cover. 

Understand Your Variables

Utility costs can vary based on where you live. Some southern locations, for example, may have lower energy bills in the winter because they use less heat. But in the summer, their bills jump because of the use of air conditioning. Your utilities can also vary based on your personal usage. 

Even with this variation, it’s good to know what you’re paying for when it comes to utilities. The more familiar you are with your needs and your services, the better equipped you are to shop around. 

What if you’re not sure how to compare different utility providers? That’s ok. In this article, we’ll walk through how and why you should price comparison shop utilities.

What are Utilities Exactly?

Before we talk about the why and the how of price comparison shopping for your utilities, it’s good to know exactly what your utilities are. 

The common utility bills most people face include electricity, water, and natural gas. But more inclusive definitions of utilities also include sewer, trash, phone and internet, and cable or streaming services. 

Why You Should Price Comparison Shop Utilities

Price comparison shopping for utilities can help ensure you’re getting the exact service you need at a price that fits your budget.

When you decide to shop around for your utilities, be sure you’re clear on exactly what services you need and what you need those services to do for you. This will help you compare similar services that will meet your needs and get a true feel for the overall cost to you. 

Price comparison shopping for utilities gives you more freedom to choose the service that’s a good fit for you at the right price.

How to Comparison Shop for Utilities

How you’ll price comparison shop for utilities depends on which utility service you are working with. Some utilities like your home internet, cell phone, or streaming services you’ll have lots to choose from. Other services like electricity or water may be more limited.

Electricity and Natural Gas

When you’re price comparison shopping for electricity and natural gas, it’s important to know if you live in a state that offers either electricity choice or natural gas choice. Not every state does. 

If you live in a state without electricity or natural gas choice, unfortunately, this is a utility you won’t be able to shop around for. 

For a complete list of choices available to residents in each state, look at the list created by The American Coalition of Energy Suppliers. 

If your state does offer choices, this list will help you learn more about who you can contact and what services might be available.

Water

Your water bill is another utility you’ll likely have a difficult time shopping around for. Across the US, water services are often provided by the municipality you live in. Because the same service is provided to your entire community, often there is little to do in the way of price comparison shopping.

Garbage

If your community has more than one garbage service, you can compare rates between the different providers to see what the best rate is for your situation. When comparing services, be sure to compare how often they pick up the trash and the size of the bin you get. This will help you be sure the service is what you need for the best price.

Internet/Phone Services

Before you start to compare wireless service rates and plans, sit down, and look at your current service. Look at the speed, the amount of data, and any other add-ons to the plan that are important to you. 

Then, look online or call companies in your area to see what they charge for similar service. 

When you’re comparing prices, don’t forget to factor in any activation or device fees. Also, remember that depending on your contract with your current provider, you may face a penalty fee for switching service. These aren’t reasons not to switch because the money you can save in the long run is important. They are just important costs to factor in and consider in your budget.

Cable/Streaming Services

Comparing the prices for your cable service or streaming services is a great way to save money on your utilities. 

Start by making a list of all the cable and streaming services you have. Look carefully at your list to be sure the services you have are services you use. If you don’t use a service, cancel it. 

Then, see if you can find better-priced alternatives for the services you use and want to keep. 

Different streaming TV services can give you the same channels you would have on cable, but often at a fraction of the price. 

And by taking time to compare your streaming options, you can find the best choice for your budget and your preferences. This’ll help you save money and still have access to your desired services.

Other Ways to Save

While price comparison shopping for your utilities can be a good way to save money, it’s not the only way to save on your utilities. There are other things you can do, especially for your electricity, water, and natural gas bills, that can also help you save. 

Turn down your heat a bit in the winter, and turn up your AC a bit in the summer. Adjusting the temperature on your thermostat just a few degrees can help save you money. 

You can also change the kind of lightbulbs you use to save on your electricity bill. 

To save both water and money, be sure to turn the sink off when you aren’t using it and take shorter showers. You can also wash your clothes in cool or cold water to save money. 

If you price comparison shop where you can and use some of these energy-saving tips, you should be able to decrease your utility bills and stay on budget.