Financing analyst gives payment protection insurance tips

Wed, 07 Feb 2007

A financing expert has offered tips to customers to help them avoid getting sold over-priced payment protection insurance cover.

Payment protection insurance providers typically commit to paying bills such as credit card and mortgage repayments if the policyholder is suddenly unable to pay themselves.

This may be because of any one of a number of unforeseen occurrences, such as being made redundant or losing a regular salary because of long-term illness or injury.

And Michelle Slade, analyst at financing website Moneyfacts.co.uk, has claimed that payment insurance may have become increasingly attractive over the course of the last 12 months as a result of rising council tax pills, energy prices and lending rates.

However, customers should consider ignoring the entreaties of sales staff paid by credit card providers, she has suggested.

"Remember, you don't have to buy your credit card PPI [payment protection insurance] cover from your card provider," she said.

"You can purchase this insurance from a standalone independent broker."

This is because independent organisations often offer the same service "at a much more competitive rate", she concluded.

In addition to payment protection insurance, it is also possible to get a range of other protection products such as home insurance, car insurance and life assurance deals.

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