People have been told to seek advice from experts before taking out insurance on other financial products.
According to Which?, consumers need to ensure they are protecting all of their finances instead of taking out credit card price protection insurance (PPI) to cover one debt.
Research also shows that the claims ratio for credit card PPI is just 11 per cent, therefore people are advised to spend money on other insurance such as income protection.
Lucy Widenka, personal finance campaigner for Which?, said that "consumers should not to feel obliged to take out any insurance alongside another financial product until they have sought independent advice".
According to the Financial Services Authority, many firms do not explain PPI correctly to their customers or find out if the policy is suitable for them.
Looking for a cheap loan? Fill in our short quote form and compare loans from a panel of lenders. |
0 comments
