Payment Protection Insurance PPI clients overcharged by £1.4bn

In June 2008 the Competition Commission stated that a lack of competition has lead to customers being overcharged by £1.4bn a year for their payment protection insurance.

The report found that the vast majority of payment protection insurance policies are sold at the same time as a consumer takes out a loan as most people do not shop around.

We have always offered a stand alone loan insurance policy for our clients. Rarely is any insurance which is sold with something else value for money. Many people are currently seeking compensation for loan policies which have been mis-sold and lots of people didn’t even know they had the cover as it was included within their loan repayments.

We know that you can save money each and every month by taking out an independent loan insurance policy rather than the one offered by the finance company. It is important to realise that the cover our policy offers may not exactly match your existing policy so it is important to read and understand all about the policy before you commit to buy.

Personal loan insurance

When you apply for a personal loan, car loan or HP the finance company will invariably try to sell you some kind of loan insurance or loan protection policy. They want you to take the cover out because it is overpriced and they earn commission from every policy sold.

Firstly, you do not have to take out the loan insurance policy offered. Check the loan quotation and paperwork very carefully. Is it included within the monthly payment?

If you feel that protecting your loan payments is important then you could buy loan insurance separately and this is normally a much cheaper way of protecting the loan repayments.

We offer a loan payment protection policy from British Insurance which is great value for money. You can quote and buy online in just a few minutes. Our clients have saved considerable amounts of money by buying their loan insurance policy independently of the loan itself.