Mar 15th 2010 Over Priced Protection Clear for All to See
Until now, it’s been impossible to compare loan, mortgage and income protection premiums, but with Moneyfacts’ latest findings on loan cover costs, consumers now have an ‘at a glance guide’ for all three.
In all cases, the tables reveal that although High Street banks and building societies sell over 80% of PPI policies, consumers are not getting the best deal.
Moneyfacts compared premiums per £100 of cover for loan policies and the findings were shocking. A 30 year-old taking out loan protection with the Royal Bank of Scotland, Natwest or Direct Line would pay over £25 per £100 of cover – that’s 10 x more than British Insurance’s product at £2.15.
With mortgage and income protection, the most expensive providers were around four and five times higher than the cheapest. These findings provide consumers with further proof that they should shop around for a better deal.
Simon Burgess, Managing Director of British Insurance Limited comments: “Banks and building societies have traditionally marketed their loan protection products on interest rates alone, so it’s been impossible to compare costs in this area – until now that is. With all three product tables completed, consumers can make more informed decisions and not be coerced into buying cover with their existing lender.”
He continued: “The big players have already had their knuckles rapped by the Office of Fair Trading for their anti-competitive practices and these tables clearly evidence how consumers are being ripped off.”
Unlike other providers, British Insurance Limited offers back to day one cover, ensuring consumers do not have to wait 60 days before receiving a pay out.
Simon Burgess is Managing Director of britishinsurance.com BritishInsurance.com, providers of ethical, low cost britishinsurance.com payment protection insurance (PPI) products. Simon is well-respected in the industry and by the press. He is known as a consumer champion for his very vocal views against companies who ‘rip-off’ their customers with over-priced and sometimes inadequate PPI policies.
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