Is it Worth Buying Payment Protection Insurance
Mobile phones, credit cards, lost luggage, identity fraud - insurers will sell you a policy against almost anything. Some 20,000 alien-abduction policies, for example, have been sold by London-based firm Goodfellow Rebecca Ingrams Pearson (GRIP), and around 4,000 immaculate-conception policies (”very desirable with girls called Mary,” says Simon Burgess, of GRIP). But Britons are wasting thousands of pounds on unnecessary insurance, so what, if anything, do we need to insure?
Worthwhile policies safeguard against real risks you could never deal with yourself. So consider life insurance if you have dependents. Buy home insurance, because you could not afford to redo your property if it ruined by fire and get motor insurance, not merely because it’s a legal must, but because replacing a car is farther than most people’s wallets.
ID fraud insurance, on the other hand, is merely one of a number of money-spinners promising peace of mind. In reality, not much fraud is identity-related. In any case, banks will put the money back into your account if you fall victim. Mobile phone traders routinely sell handset insurance . This can push monthly contract payments up by 50% or more, but some polices only pay out if you lose the phone in a violent crime (mugging counts, pickpocketing does not). In fact, you can often claim for a lost handset on your home insurance. Falling for this insurance could waste you £150 a year.
Payment protection insurance, adds about 30% to monthly loan or mortgage repayments and is notoriously difficult to claim.
In short, beware of policies where small print makes claims virtually not possible, and don’t bother insuring anything you could afford to replace yourself.
Tags: ppi claim, ppi compensation