Firms were offering loans on their websites where PPI was automatically included, using techniques such as a 'pre-ticked' box. This sales technique could lead to customers purchasing PPI without making an active decision to do so.
Firms have now agreed to change this so that the customer must actively choose to buy it.
Vernon Everitt, FSA director retail themes, said: "We have made PPI a top priority and are pleased that firms have agreed to change the way they sell PPI over the internet. Naturally, many customers are focussed on getting the loan itself, but it is just as important that they also think about whether or not they want to protect their loan repayments by taking out PPI cover.
"This change means that it will be up to the customer to actively choose to buy PPI rather than it being sold automatically."
The FSA is due to report on its latest investigations into PPI sales standards in September 2007.
