Britishinsurance.com compared the loan payment protection insurance premiums of ten of the top UK lenders against its own cover and found that, on average, customers were shelling out £2500 more than they needed to.
Those taking out loan payment protection insurance with the most expensive lender, would, during the lifetime of a five year loan, have to pay an extra £3,026 for their cover. According to Peter Staddon of the British Insurance Brokers’ Association, excessive profiteering and substantial complaints have been commonplace over recent years. He comments: “The britishinsurance.com policy is not only a welcome development for borrowers, but its wide cover and flexibility empowers consumers who can now expect, perhaps for the first time, to receive truly worthwhile insurance at a realistic price.”
Simon Burgess, Managing Director of britishinsurance.com says: “This research clearly demonstrates that the FSA’s request to treat customers fairly is being ignored. No one is obliged to accept the cover offered by a loan provider – most people shop-around when it comes to home and motor insurance, so why not do the same with payment protection? There are huge savings to be made and paying the price of apathy should not be an option.”
