When shopping for home services, be it internet, TV, or smart home technology, we all have the same goal: getting the best service at the lowest price. Most home service providers present their plans with a monthly price tag, however, there are often other fees listed in the fine print that should be considered. The following is a guide of common home service hidden fees to help you learn what to expect, and how in some cases, be able to avoid them.
Installation/activation Fees: When first signing up for a home service, there are often one-time fees associated with starting your plan. Activation fees refer to the cost of opening your account to start your service. If a provider requires an activation fee to begin your internet or TV service, expect to pay around $10.
Installation fees are another one-time cost that covers the setup of any equipment needed for your home service. There are generally two types of installation options: self-installation, and professional installation. Most internet and TV providers offer self-installation of equipment such as Wi-Fi routers and cable boxes for around $10, a much cheaper price point than professional installation.
Other services such as home security and satellite internet or TV often require professional installation. This is because equipment such as satellite dishes and motion sensors require a knowledgeable professional for proper installation. While the cost of professional installation varies, expect to pay a one-time fee around $50 to $200.
Equipment Rentals: Every home service provider offers equipment rentals that are required to access their services such as Wi-Fi routers, cable boxes, satellite dishes and/or home security equipment. Prices will vary depending on what equipment you need, but you can expect to pay anywhere from $5 to $15 a month for most internet and TV equipment rentals.
In some instances, it is possible to invest in your own equipment to avoid paying rental fees. If you choose to go this route, be sure to check with your service provider to ensure the equipment you purchase is compatible with their service.
Data Overages: When selecting an internet plan, you will have to choose between a certain allotment of monthly data or an unlimited data plan. Unlimited data plans are typically more expensive per month; however, households do not need to worry about going over a data limit and incurring extra costs.
For non-unlimited data plans, it is important to pick a data cap that is right for your home. Households with more users or those that use the internet for more strenuous tasks (such as streaming 4k) will require more data than smaller households or households that engage in less taxing internet activities (browsing social media). Once a household reaches their monthly data cap, they will experience throttling (slower internet) or extra fees for data overages (typically around $10 per 50 GB of extra data).
Promotional Rates: Many home service providers offer promotional deals to attract new customers, which is a great way to save money on internet, TV and home security services. When selecting a promotional service, however, it is important to understand the terms of the promotional plan such as how long the deal lasts. For example, AT&T often offers a 12-month promotional rate for new customers, meaning on the 13th month your monthly costs for the same service may be increased. When your promotional period is about to expire, be sure to contact your service provider to attempt to renegotiate rates or plan to ensure a continued affordable bill.
Late Payments: When signing up for a home service plan you will agree with a service provider on a monthly cost and payment due date. If you delay or miss the due date (normally the first of the month) you may incur an extra fee on your next bill. This fee can range from a one-time payment of around $10 to $25 or a percentage of the bill you missed.
To avoid late payment fees, it is best to set up auto-pay online so that you don’t have to worry about payment due dates or accidentally missing a payment. Oftentimes, providers will offer a small discount to your monthly bill if you choose this paperless method.
Early Termination: When signing up for a new home service plan, it is important to pay attention to whether the plan requires a contract. Plans that do not require a contract offer the flexibility of being able to change providers or plans whenever you need to without incurring an early termination fee. On the other hand, plans with contracts offer the benefit of locking in a certain rate for a given period but require you to keep the service for a given timeframe (typically one to two years).
If you sign a contract plan and then cancel before the end of service (for example if you have to move), then you will have to pay an early termination fee. Early termination fees vary, but typically cost between $100 to $350 or a given amount for the time remaining in your contract (for example $10 for every month remaining).
If you are a short-term renter or someone who moves often, selecting a home service plan without a contract is the best way to avoid early termination fees. However, sometimes life happens. Perhaps you have an unexpected move or are unhappy with your current service. Some providers such as Spectrum, CenturyLink, and Verizon Fios offer contract buyouts in which the provider covers some or all of your early termination fee when you switch to their service. If you find yourself in this situation, explore contract buyouts as an option to avoid paying early termination fees.
In conclusion
it is important to pay attention to not only a plan’s monthly price tag, but other potential fees as well. While some fees are unavoidable, others can easily be avoided with the knowledge above. If you have any questions regarding extra fees on a plan you are considering, please reach out to one of our experts here at Smart Connection. We would be happy to help.
