Money
Getting the best deal
Payment protection insurance - help for the consumer
The City watchdog has launched free, impartial comparison tables for payment protection insurance (PPI) for consumers to view online
PPI is bought alongside credit cards, loans and mortgages which are designed to meet repayments if you lose your income, writes Holly Thomas.
The Financial Services Authority (FSA) has levied numerous fines on financial companies for mis-selling PPI policies and have expressed concern that some companies are not providing enough, if any, information to decide if their customers really need the insurance.
The tables, which will be updated daily, will feature single and regular premium policies and, as well as giving information on the cost of PPI, will provide details of exclusions, and how pre-existing conditions - such as medical issues - are handled by each particular firm.
By answering a series of questions the site will provide a list of suitable comparisons.
The tables do not however cover the entire insurance market because some providers chose not to supply details of their policies.
Chris Pond at the FSA said: "PPI is almost always optional and consumers need to consider their own financial circumstances when deciding to purchase it and make sure they are clear about what will be covered."
Consumer group Which? said a third of people taking out the insurance on a loan in the past five years may fall foul of exclusions that would prevent them claiming.
Teresa Fritz at Which? said: "While comparison tables are always useful, people should be aware that there are alternative and better products than PPI. It's vital they're offered the opportunity to review their entire protection needs when being sold a loan or there's a danger they won't have adequate protection."
Matt Morris at broker LifeSearch, said: "It's good that the FSA are helping to make consumers aware that there are a range of PPI options available and they don't simply have to buy from their banks, who are responsible for pushing a lot of unsuitable PPI on the public at expensive rates.
"The FSA's new price comparison tables will hopefully also help drive down the price of PPI, which is good for consumers.
"However, deciding which policy to buy shouldn't be decided solely on price. It would be good if there were more mention of Income Protection on the site, as it is a superior protection to PPI and provides more comprehensive protection for longer. PPI is full of exclusions and usually only runs for one or two years."
The tables can be found at www.fsa.gov.uk/tables/bespoke/PPI
* Holly Thomas is an award-winning financial journalist and Deputy Personal Finance Editor at the Daily Express and Sunday Express. Holly's views represent her own opinions and are for general information only. Always seek independent financial advice.
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