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Scotland Wide PPI Specialists

Can I Still Buy PPI?

08 June 2015

Is it the worst policy ever invented or can some people benefit from buying it?

Payment protection insurance (PPI) as a product has been hit hard by the mis-selling scandal and it seems that many people are still confused between the product and the way it was sold.

So, is PPI a valid policy for many people? How do you know it is the right policy for you?

As with all insurance policies, there are various factors to consider before you purchase an insurance policy, and the same is true of PPI. Everyone's circumstances are different and thus it is essential that you consider every policy in relation to your own needs and wants…

  • Appropriate or not? - deciding if PPI is right for you is about understanding if the policy offers you the cover you need and want. In many mis-selling cases, customers did not need PPI as they had cover provided already either through another insurance policy, for example, or with a benefits package with their work. Take time to consider the bigger picture of your financial situation and what policies fit what you need, rather than making your situation fit the policy.
  • Cost - clearly, the amount you pay for the policy is important and, as with all insurance policies, there is a rule of thumb that you can use: the more the policy costs, the more it should do. Basic insurances only cover the very basic of issues and thus, may not be suitable. However, if the policy seems expensive make sure that the cover it offers is comprehensive.
  • Pay-out rate - if you are buying an insurance for specific reason, taking time to research the pay-out rate for that particular type of policy with the company you are thinking of buying it from, is one way of ascertaining how good the company is at working with customers and their situations. PPI initially had a successful pay-out rate of 15%, very low when you consider that other types of insurance policies, such as car insurance, pay-out in over 80% of cases.
  • Other insurances first - but, financial experts agree that the best move is to make sure that you have other kinds of insurances first. From a budget point of view, ensuring you have good deals on car insurance, contents insurance, house insurance (if need) and so on are more of priority than a PPI type insurance.

If you are concerned about protecting repayments on loans and credit cards, check with an independent financial advisor as to the best way forward for you.

If you think you could be owed PPI compensation, seek help from Scottish PPI Claims.