Nowadays, smartphones dominate the mobile industry. In fact, 76% of UK adults own a smartphone, with competition from Apple, Nokia, LG, Samsung, Sony and many other global brands. However, with the rise of smartphones, the price customers are paying each month has also increased.

As handsets can be a pretty expensive investment upfront, it’s common to have a contract over a predetermined period of time – up to 24 months in most cases. You’ll pay a set amount each month to cover not only the phone, but also extras such as data, texts and calls.

Unfortunately, it’s not rare to find customers spending too much on these contracts and in many cases, overusing their allowances and facing further charges. In this article we look into the various options available for reducing the price of your mobile phone contract, in order to save a little bit of money each month.

1. Be wary of your data usage

One of the most common ways contract customers run into extra charges, is through the excess use of data. It’s amazing how much phone data you’ll use within minutes, especially when your location is being tracked – such as on maps. Whether it’s 3G or 4G, using more than your allocated data can incur charges – whereby you’ll need to purchase extra allowance.

You should also be aware of your data running in the background, especially on apps such as social media and your emails. These apps will automatically check for updates using your allowance. It is possible to disable this in the settings though, so make sure this is done.

As such, it’s worth connecting to WiFi wherever possible. This will save your phone switching to data. Whether at home or in the workplace, login to WiFi and ensure your handset connects to this as a priority.

You should also be aware of roaming data charges when travelling abroad. It’s amazing just how many people are shocked when looking at their bill and we’re not just talking a few pounds. It’s not uncommon for customers to be charged tens or even hundreds of pounds more than usual.

2. Consider opting out of phone insurance

Which? report that 9 out of 10 adults now have a mobile phone. With the handset often being worth hundreds of pounds, providers are keen to sell insurance as an extra fee to customers. These contracts are popular too and there are some £10m worth of insurance contracts in the UK alone.

But is insurance really worth your money? Insurance can set you back a small fortune each year and you could be paying up to £14.99 monthly. This comes to around £360 in just two years. Plus, when you consider theft or loss is rarely covered by providers, this outgoing doesn’t seem to add up.

A better alternative is to self-insure your phone – whereby you save up the funds and can pay out if you need to replace later down the line. If you keep your handset safe and sound, you’ll have a nice chunk of money to spend on whatever you like. Some banks also offer insurance with certain accounts, so it’s worthwhile checking to see what’s available at your bank.

3. Find out if you’re overpaying on your contract

Research shows that 8 out of 10 people are on the wrong mobile contract, resulting in them overpaying. Although most contracts seem to include unlimited texts and phone calls, only around 30% of customers are making the most of this – with others spending £200 extra annually.

In order to resolve this, it’s important to understand your need for a new mobile phone and to calculate what you’ll really be using on a monthly basis. There are some great tariffs to choose from when picking a new contract and you’ll find those which are tailored to a particular lifestyle

4. SIM-only deals can help you save money

Once a phone contract comes to an end, many customers look to upgrade almost instantly. Whilst this gives you access to the latest and greatest smartphones available, it also means your expenses will remain high and your recently paid off handset will go to waste.

A smarter option for many would be to choose a SIM-only deal. The mobile phone is now yours to keep and your provider can arrange a new contract whereby you’ll only pay for allowances. This will dramatically slash your expenses and give you a little extra use from your existing phone.

As always though, it’s worth thinking about the two options before deciding what’s best for your lifestyle.

5. Move over to a business mobile phone

Although most people tend to know all about personal contracts, if you run a business it’s a better idea financially to consider a different approach. Business phone contracts offer a number of extra perks to the more traditional personal deals.

For starters, there could be the opportunity to receive a subsidised handset, or even one free of charge. You could also put multiple handsets onto the contract and even split bills across these – allowing more employees to have a business phone, whilst spreading the costs.

If you’re considering a business mobile phone and want to have a chat to the Aerial Direct team about your options, why not get in touch? You can all us on 0330 019 3655.