Many of us have applied for a loan, to help us make that purchase we really want. It’s become a very common way of funding bigger buys in particular – and especially a car.
And no matter who will have provided the money, if you made your application in the last few years, it’s also very likely that you were also offered a way of covering your payments in the event of you becoming ill and having to take time off work, or even losing your job.
That cover, known as Payment Protection Insurance, or PPI, was designed to ensure that you didn’t have to face a penalty for missing an instalment on your loan, by making the payment provided you fulfilled the strict criteria set by the insurance company.
At the time you took out the loan, you will have been asked a series of questions on your lender’s behalf, designed to assess your suitability for a PPI policy. But over the course of a loan, people’s circumstances often change; for example they find a new partner, who would be able to temporarily help them make loan payments. Therefore the PPI would no longer have been necessary.
Lots of people also took out PPI policies unaware that they could have shopped around for a policy which might have better suited their individual needs, and possibly even been cheaper – just as they do with many other types of insurance.
As with those other policies, it’s important to check the small print of any PPI policy, because it is likely to lay down in very strict terms the circumstances under which it will pay out to cover your loan, and what you need to do to qualify for any payouts. It is common for a wide range of exclusions to be contained in the clauses of such policies, so you should be sure that you are aware of the main ones.
Of course, any change which meant you couldn’t keep up the payments on a loan for a car which was essential for you to get to and from work or carry out other vital jobs would place a real strain on you, but if you feel that you have been mis-sold PPI we could assist you in making car finance PPI claims, so contact us today if you believe you would be eligible for car finance insurance claims.