A UK insurer is launching a new online product that offers consumers the opportunity to control the costs of payment protection insurance (PPI).
PPI can cover people who have taken out a loan, should they become unemployed, ill or injured for any reason, but present PPI offerings have been widely criticised for being too expensive.
The new PPI offering from britishinsurance.co.uk could offer those who have taken out a loan the best deal, as unlike current single premium products, consumers pay an interest-free monthly payment of £5 for every £100 of cover provided.
The company says that other lenders are currently offering single premium insurance for around £8 or £9 per £100 covered, plus interest on top of that.
Simon Burgess, managing director of britishinsurance.com, said: “I’m redressing the in-balance where lenders appear to have the power instead of the consumers. Too often, providers are unwilling to make a long-term commitment on the policies they offer – we’ve all heard horror stories of cover being withdrawn leaving people high and dry.
“People should be shopping around for their payment protection cover in the same way they do their other insurances.”
The new online product is available from www.shelter.co.uk
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