A la carte: A menu or list that prices items separately. — Webster’s Dictionary
They say you can have everything.
But what if we don’t need everything?
What if we simply want a few great things we enjoy, and don’t want to cover the cost of all the other extras we’ll never use?
Why should we shell out for hundreds of TV channels we never watch, bundles of mobile data we don’t touch, or coverage for long road trips we’re not planning?
Increasingly, savvy shoppers are opting to purchase individual items a la carte rather than pay a lump sum for an all-in-one bundle that doesn’t match their habits.
With that in mind, here’s the latest on a la carte options for television, wireless plans, airline fares and even auto insurance.
1. Ditch Cable and Pick What You Actually Watch
More people are dropping cable because it’s so pricey. A recent TiVo poll found nearly half of cable or satellite subscribers were actively thinking about canceling or at least open to the idea.
About 80% of those who have cut the cord cited cost as the main reason. U.S. households that still pay for TV are spending roughly $103 per month on average.
Most viewers in the U.S. and Canada now prefer a la carte TV service, paying only for the channels they actually use, the TiVo report revealed. (Top requested channels included ABC, CBS, NBC, Discovery Channel and History.)
TiVo discovered that 60% of respondents didn’t need cable because they were using streaming services. Over 54% used Netflix, 27% had Amazon Prime, and 12% opted for Hulu.
Each streaming service brings its own strengths and weaknesses. If you’re wondering which fits you best, we’ve put together resources to compare costs, content types, title counts and more.
2. Pay-per-Mile Auto Insurance
Suzanne Lane doesn’t drive often. She works remotely. Occasionally she’ll run to the grocery store or the doctor, but that’s about it.
And she pays only $35 a month for car insurance.
“All my driving is in my neighborhood,” says Lane, 55, from Philadelphia. “A few trips here and there.”
Since she’s such an infrequent driver, she grew tired of overpaying for auto insurance. It didn’t make sense for someone who routinely drives under five miles a day to pay the same rates as someone commuting 50 miles daily.
So she discovered Metromile,a startup aiming to change auto insurance. It provides low-mileage drivers an alternative: pay-as-you-drive coverage.
She’s exactly the client Metromile targets — low-mileage motorists like city residents, retirees and telecommuters. Launched in 2011, the insurer is also betting that younger drivers will be attracted to less expensive, tailored car insurance.
Metromile currently operates in California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia and Washington, with plans to expand into Florida, New York and Texas.
Typical pricing is a base fee of $35 per month plus 5 cents per mile. Metromile monitors your miles with a device that plugs into your vehicle’s diagnostic port.
Before switching, Lane had been with State Farm for three decades. She estimates her premium has dropped by about $720 a year.
3. Trim Down Your Mobile Plan
With a partner and two children, Marcus Hill needs to stick to a budget. But he struggled to find a mobile plan that was both dependable and affordable.
Hill had been with Verizon for a long time but found it costly. He was spending roughly $180 per month for phone service for him and his spouse.
“With the data allowances, it adds up,” says Hill, a 43-year-old sales rep near Portland, Oregon. “I felt like I was paying for two internets — home internet and phone internet.”
That’s when he switched to Twigby. It’s a discount carrier making waves in the crowded market of cheap, no-contract cell plans.
Twigby is an MVNO (Mobile Virtual Network Operator). It purchases network access wholesale from major carriers like Sprint and Verizon and resells it to consumers.
“The savings are dramatic,” Hill says. “Now, for both lines, we’re paying around $60.”
4. Embrace Unbundled Airline Tickets
Buy a basic economy ticket on American or United and you might be barred from stowing your carry-on in the overhead compartment. Those bins may be off-limits.
Airlines are increasingly slicing up services and charging separately for things that once were bundled with the fare, such as overhead bin access and Wi-Fi. Some travelers feel nickeled-and-dimed by this shift. We prefer to see it another way.
We view it as an opportunity to secure cheaper airfare.
Basic economy fares operate similarly to tickets from low-cost carriers like Allegiant or Spirit. You get a seat — that’s the core of the fare. If you want to bring a carry-on or choose a specific seat, you’ll pay extra.
The upside? You can travel in an American or United cabin rather than a cramped low-cost airline seat, and you have the option to buy in-flight food and entertainment that some discount operators don’t offer.
That’s a la carte travel.
A Simple Way to Save
Consumers now have more choices when it comes to TV, car insurance, mobile plans and plane tickets.
When you order lunch at Chipotle, do you want to spend an extra dollar on guacamole for your burrito? Or skip the guac and pocket the savings?
The choice is yours.
We’re entering a new era.
Alex Carr (alex.carr@savinly.com) is a senior writer at Savinly. He appreciates having options.
