Have you checked out your household budget recently? If not, there’s a good chance you’re paying more than you should for some of your bills, whether it’s your cell phone, internet service, or even your car insurance. Luckily, the price tag usually isn’t set in stone—it’s possible to negotiate a deal to pay less. Doing so can bolster your savings account, reduce your reliance on debt, and support long-term financial goals like paying for a dream vacation.
In this guide, we’ll show you ten everyday bills you can negotiate and provide tips on getting started.
What bills can you negotiate?
There’s a wide range of bills you can negotiate to lower your expenses. However, some are easier to reduce than others. The following bills are good candidates for bargaining.
Internet
Typically, when you first sign up for an internet plan, your internet service provider (ISP) will charge you a low introductory rate for a year. After that, the standard fee kicks in, which can be steep. Also, your bill may begin creeping up every few months as you’re not tied to any pricing contract.
The best time to negotiate a new deal is when your introductory rate is about to expire. Contact your ISP to see if there are any discounted offers available. Be sure to check out deals from the competition, too, so you have some leverage when discussing your options. In most cases, you’ll secure a lower rate since your ISP would prefer to keep you as a customer.
Cell phone
As a consumer, you can exercise a lot of power in the cell phone arena. Phone plans are generously flexible, and many providers routinely offer promotions to retain and attract customers. A quick call to customer service can yield significant savings, especially if you’ve been a loyal customer for a while. Bundled options and family plans can also reduce your bill.
Before reaching out to your existing service provider, review your current plan. Check out what services you use, how often you use them, and the rates you pay. Then, compare plans from alternative carriers that offer similar services but at a lower monthly fee. Once you’ve gathered these details, contact your current provider and ask if they can match the offer.
Cable
Cable service is another bill that’s a cinch to negotiate, given the competitive nature of the industry. In addition, cable isn’t the vaunted luxury it used to be. Netflix, Amazon Prime, Disney+ and other streaming services are increasingly dominating the market. As a result, cable companies are usually more than willing to accommodate you. If you express interest in cancelling your service or switching providers, you’ll more often than not secure a discount.
Car insurance
Car insurance policies can vary widely based on numerous factors, including your driving record, age, insurance history, and even your vehicle’s safety features. They also differ based on which company underwrites your policy. Therefore, it’s worth discussing ways to lower your premium with your insurance provider.
Review your policy at least once a year to ensure it meets your needs at a reasonable price. For example, let’s say you have comprehensive coverage. If your vehicle is over a decade old, its value may be too low to justify paying for this protection. In that case, consider dropping your comprehensive coverage.
Another example is vehicle usage. If you drive very little because you work from home, ask your insurance provider if you can pay your premium by the km rather than a flat rate. If available in your province, this type of policy could save you money in the long run.
As with any bill negotiation strategy, consult with other insurance providers to see if they can offer you a cheaper policy. You can use the quotes as a bargaining chip when speaking with your current provider.
Gym membership
Gym memberships are more flexible than you think. You may get a discounted price if you commit to a long-term contract or pay the annual fee upfront.
Gyms also run promotional offers throughout the year to encourage people to join. If your current membership fee is too costly, wait for one of these deals to appear. Then, see if you can persuade your current gym to match or beat the offer by the competing facility.
Credit card interest and fees
Reducing credit card interest even by a few percentage points can drastically lower your debt, so asking for a lower rate is worth doing.
When discussing interest, mention enticing credit cards you’ve come across, such as a balance transfer card with a 0% introductory offer. Your lender may be willing to reduce your existing rate to retain you as a customer. Of course, having a stellar payment history will give you leverage, too—borrowers in good standing tend to get preferential treatment.
Credit cards come with many hidden fees, so it’s worth asking your card provider to waive some of them. Late fees and annual fees are the most likely to be removed from your account.
Medical expenses
Negotiating medical bills may seem like a daunting prospect. But you may be surprised at how often you can work out a reduced payment plan or obtain a discount.
For example, your dentist may be willing to lower their fee for select procedures if you don’t have health insurance or you’ve used up your annual coverage. There are numerous examples of people getting discounts when visiting the dentist.
The same concept applies to therapy services. Many therapists charge their customers on a sliding scale. That means you and your therapist agree to a reduced rate if you lack insurance coverage or have other financial constraints.
Another way to save money on medical expenses is to ask for generic brands for prescription drugs —these are cheaper than the brand-name versions.
Rent
The best time to negotiate rent is during your lease renewal. If you intend to stay in your current residence long-term, ask your landlord if you can sign a two-year renewal in exchange for a lower fee. This type of offer is enticing to many landlords as they would rather avoid the cost and hassle of finding a replacement tenant. It’s even more compelling in a competitive rental market.
Besides committing to a multi-year lease, you can offer to give up certain amenities or take on additional responsibilities, such as yard work and snow removal.
As a tenant, it’s worth knowing what a reasonable rent fee is so you can bargain well. Check out rental rates for similar properties in your area to learn the average market price.
Mortgage interest
There are three times you should consider negotiating with your mortgage lender:
- When first acquiring a mortgage. Never assume the rates your lender posts on their website are the lowest available. Like the sticker price on a car, they can always go lower. Shop around and compare rates with other lenders. Being informed about other offers will give you extra leverage when negotiating with your preferred lender.
- When renewing your mortgage. If your mortgage renewal is coming up, your lender will send you a renewal letter in advance. It will contain various terms at set rates, but never accept these at face value. Research other financial institutions to see if they offer something better. If you discover a good deal, mention it to your current lender – it may spur them to match or beat it to retain you as a customer.
- When refinancing your mortgage. If mortgage rates are falling, refinancing can help lower your interest costs. But you don’t have to accept the first rate your lender offers. Once again, gather multiple quotes and use the information as a bargaining chip with your existing lender.
Home repairs and renovations
The average Canadian homeowner spends about $12,000 annually to keep their home in shape. Therefore, it pays to work out deals when you can, especially if you don’t have an emergency fund to fix pressing repair issues.
Contactors are usually open to discussing pricing options, especially for large projects and during off-peak seasons. As with other services, don’t settle for the first home repair company that pops up from your Google search. Research some reputable competitors and ask them for quotes. Use the knowledge to help you agree on a reasonable price with your preferred vendor.
Can you negotiate online subscription services?
In general, you can’t negotiate lower fees for Netflix, Spotify, Amazon, and similar subscription services.
However, you can make financially savvy decisions when choosing your monthly plan. Many of these service providers offer different tiers and bundling options, some of which can save you money. For example, you can opt for a cheaper plan that shows ads or share subscriptions with family or friends.
Can you negotiate utility bills?
In Canada, it’s generally not possible to negotiate utility bills like water, natural gas, and electricity. The reason is that utilities are government-regulated services. As such, prices are often fixed rather than determined by the market.
However, there are a couple of strategies you can employ to reduce your utility bills:
- Make your home energy friendly. Some utility companies will reward you with a rebate if you buy energy-efficient appliances or make energy-saving improvements (solar panels, smart thermostats, etc.)
- Find an alternative supplier. You can choose which company supplies your natural gas and electricity in Ontario and Alberta. Learn which service providers are available in your region.
Can you negotiate property taxes?
In general, property taxes are not a negotiable expense in Canada. The municipality assesses the value of your home annually and sets the tax rate with no input from homeowners.
However, obtaining some financial relief on your property tax bill is still possible. Suppose you believe your property’s assessed value is unfairly high. In that case, you can challenge the decision by filing an appeal with the municipality. If successful, you may pay a lower amount. Just be aware that this process can take a lot of time and effort.
You can also check if your municipality offers taxpayer relief programs. Depending on your circumstances, you could reduce or defer your property tax bill.
The bottom line on negotiating bills
Reducing your spending is one of the fastest ways to improve your household’s finances. It’s also one of the easiest since it doesn’t require you to take on a side hustle or work longer hours. If you feel like you’re paying too much, you probably are, so it’s worth reviewing your budget to see if there’s room for improvement.
Start with recurring bills like internet, cable, phone, and insurance. Review your current plans, research the competition, and then contact your current providers to see what they can do for you. Then, move on to the bigger expenses, such as your mortgage or rent payments.
Besides day-to-day bills, it’s worth exploring ways to reduce your debt. DIY debt management strategies can help you reduce your interest charges and lower your monthly payments. At David Sklar & Associates, we’ve been helping people across Ontario solve their debt problems and reach their financial goals for over twenty years. Contact us for a free consultation if you need expert guidance in getting out of debt.
