Payment Protection Insurance - Mortgage compensation

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Payment Protection Insurance Costs

Loan Type	Loan Amount	PPI Premium	Premium as % of total loan
Unsecured personal loan	£8,933	£2,217	25%
Unsecured personal loan	£11,000	£5,133	47%
HP for car	£5,059	£2,157	43%
HP for car	£6,895	£2,317	34%
Unsecured loan	£5,600	£744	13%
Secured loan	£25,000	£12,127	49%
Secured loan	£35,000	£10,150	29%
Conditional sale for car	£4,300	£2,394	56%
Unsecured personal loan	£13,000	£3,367	26%

Source Citizens Advice Bureau evidence report

The revenue made from this type of stealth like insurance is massive and the incentive to make sure you end up with bog standard PPI or some other form of payment protection is even bigger.

Compensation ppi

Payment Protection Insurance - (PPI)

Millions of borrowers take out payment protection insurance (PPI) to provide security and reassurance for times of crisis and help upkeep their payments on loans, mortgages and other commitments in the event of accident, sickness or unemployment.

The PPI market is massive, around seven million policies are taken out annually. This business generates an incredible £5 billion in premiums for the lenders and the insurance companies offering these products.

If you have ever taken out personal loans, mortgages or almost any credit agreement recently you will probably have encountered payment protection insurance, PPI can be a lifesaver for some people but you may be surprised to find that a shocking amount of claims are unsuccessful when it comes down to putting this kind of insurance to the test.

Statistics provided by the government reveal that only 4% of people who take out PPI with their credit agreements ever bother to claim against their policies and that 85% of those claimants are refused their right to claim against their policy for a variety of common reasons and restrictions that the insurance company impose.

About 60% of payment protection policies are sold in conjunction with unsecured personal loans, with the remainder being related to credit card, secured loans, store card and mortgage borrowing.

Up to 85% of claims made by PPI holders fail, many due to the policy being miss sold or the product bieng unsuitable for the individual for some reason. The truth about why these claims are failing is because the insurers are rejecting them. The insurance element of your total repayments is very often recoverable if you make a successful PPI complaint. To check if you meet the basic criterea needed in order to claim by following here ppi claim.