Sean Gardner, director of MoneyExpert.com, said:
"PPI has taken some serious flack in recent months, and this report won’t do anything to stop that. But that’s really no bad thing, given that many consumers continue to fall into the trap of buying cover that isn’t appropriate."
"Consumers need to be fully aware of the terms of their cover, and ensure as best they can that they are eligible for payment in a worst case scenario."
"As with many financial products the key is to take some time to consider the value of the product and ask whether you could do better elsewhere. Far too many consumers opt just to take the policy offered by their lender because it’s convenient, when in fact they could do far better for themselves."
"In many cases income protection could be a better option altogether."
Average cost of PPI for a £100 monthly payment:
- Mortgage payment protection – £4.76
- Credit card payment protection – £11.70
- Personal loan payment protection – £18.23
Average PPI cost for a typical personal loan of £7,500 = £2,200