Shop around” says industry expert
- 19TH MAY 2007
An industry expert is urging customers looking to purchase payment protection insurance (PPI) to shop around in order to find the most suitable cover at a price that fits in with their budget.
Simon Burgess from ethical payment protection insurance provider British Insurance says that while people are more financially savvy when it comes to buying other insurance such car and home insurance, many people are unaware that they can do the same when purchasing payment protection insurance.
He says: “Many people often buy payment protection insurance cover from the first place they are offered it - normally the bank or mortgage lender. However, these often come with highly inflated premiums in order to make the bank or lender a nice, healthy profit.
“This means that you could be spending out hundreds – or even thousands – of pounds more than you need to over the policy term.”
Simon recently commissioned extensive research into payment protection insurance pricings and the results were shocking! In some cases, banks and lenders were charging up to 80% more on loan protection and 40% on mortgage payment protection insurance than British Insurance – and for the same level of cover or even with lesser benefits.
Simon continues: “When it comes to purchasing payment protection insurance, apathy often costs the customer dearly” and his research proves this. Certainly, the spotlight has been firmly on the payment protection insurance sector for a good six months, as tale of mis-sold policies and extortionate over pricing have come to the public’s attention.
“The only way to ensure that you get proper financial protection and without being ripped off is to shop around for your payment protection insurance” he summarises.
