How to Save Money on Your Internet Service

The average American spends a significant amount on internet services each year. According to data released in October 2023 by market research company J.D. Power, the average monthly cost for wireless internet service is $79, while wired internet service costs $72. This adds up to over $860 annually, a substantial expense for most U.S. households. Given this considerable outlay, it’s worth exploring ways to reduce your internet service bill. Here are six strategies to help you save money on your internet service.

Shop Around

Just as you would when purchasing a car or home insurance, it’s essential to compare prices and other factors such as speeds and contract terms when selecting a new internet service provider. This comparison will give you a clear idea of the costs and features available, helping you make an informed decision.

Examine Your Bill

Take a close look at your internet service bill to identify potential savings:

• Overage Fees: If you’re exceeding your data limit, you may be incurring overage fees, which can be around $10 for every 50 gigabytes of data over your monthly limit. Switching to a different plan with a higher data allowance could help you avoid these fees.
• Service Level: Assess whether you’re paying for a higher level of service than you need. Downgrading to a cheaper plan, such as reducing your internet speed, could lower your monthly bill by as much as $25.

Negotiate Your Bill

Contact your internet service provider to discuss ways to lower your bill. This tactic is most effective when you’re nearing the end of your contract, as the company will be keen to retain you as a customer. If you consistently pay your bill on time, you’ll be in an even stronger negotiating position.

Before making the call, research the prices and promotions offered by competitors. This information can serve as a valuable bargaining tool. Be prepared to spend some time on the phone and possibly make multiple calls. Always remain courteous and keep the option of canceling your service in mind as a last resort.

If you prefer not to negotiate yourself, consider using a service like Experian BillFixer™ to handle the negotiations for you.

Check Into Discounts

Many internet service providers offer discounts. For example, Verizon provides discounts to customers in service jobs, such as teachers, nurses, and active-duty military members. Xfinity offers a $10-a-month discount for signing up for autopay or making monthly online payments.

Additionally, bundling services from one company, such as internet and cellphone service, can lead to further savings.

Use Your Own Equipment

Instead of paying a monthly fee to rent a modem and router from your internet service provider, consider purchasing your own equipment. This can result in long-term savings.

A basic modem costs around $50, while a suitable router might be priced between $100 and $150. Alternatively, you can buy a modem-router combo for about $99 to $500. In comparison, renting this equipment could cost you $120 to $300 annually.

Look Into Government Assistance

The federal Affordable Connectivity Program offers a $30-a-month discount on internet service for eligible households. Additionally, the White House has partnered with 20 internet service providers, including AT&T, Comcast, Cox Communications, Spectrum, and Verizon, to offer internet service at no more than $30 a month to eligible households. By combining these benefits, some households may be able to enjoy high-speed internet service at no cost.

Eligibility for these discounts can be determined in two ways:

• You, your child, or your dependent is enrolled in government programs like Medicaid, SNAP (Supplemental Nutrition Assistance Program), or WIC (Special Supplemental Nutrition Program for Women, Infants, and Children).
• You meet the household income requirements.

The Bottom Line

A 2022 survey revealed that cost was the primary reason U.S. internet customers had left their providers over the previous three years. Nearly half of the respondents (46%) mentioned that lowering the cost was the one thing they would change about their current internet plan. If you’re among those looking to reduce your internet expenses, consider negotiating the price or switching to a new provider. Investing some time in this effort could result in significant savings.

At O1ne Mortgage, we understand the importance of managing your finances effectively. If you’re looking for ways to save on your internet service or need assistance with any mortgage services, don’t hesitate to call us at 213-732-3074. Our team is here to help you make the most of your money.