Antinsurance

Pound

I want to borrow about £8,000 spread over 5 years for a new car and I want PPI, that works out at about £200 a month repayment.

I looked on Antinsurance and they will cover me for £2 a month for unemployment cover. £2 a month is peanuts really, seems almost too good to be true, is it?

Rafter

Check the terms and conditions,

See when the cover kicks in and for how long - as with PPI sold by loans companies, not all cover is the same.

Check on something like moneysupermarket too and see what their rates are like.

Loan companies make 75% profit on PPI insurance premiums and in fact many of them lose money on loans and make it up from PPI sales - so the premium you get buying yourself will seem tiny when compared to the rip off prices charged by most banks.

R.

Astaroth

Source for the 75% profit margin?

Given most lenders do not underwrite their own insurance even on a 1 second glance it seems strange that the insurer would give the lender 75% of the money and the remaining 25% have to cover both the cost of administering the policy, paying claims and bringing in a profit for themselves.

DavidHM

Given most lenders do not underwrite their own insurance even on a 1 second glance it seems strange that the insurer would give the lender 75% of the money and the remaining 25% have to cover both the cost of administering the policy, paying claims and bringing in a profit for themselves.

... maybe, but you're assuming (unless you know differently) that the insurer is paying commission to the lender/introducer, rather than responding to a tender to calculate the premium and supply the underwriting and then the lender sets their own price on top.

To the OP: if you buy the right car and do without the PPI, you could still sell the car to clear any outstanding loan, if you ever found yourself in circumstances where that was necessary.

greyteam1959

Never mind the PPI I would be looking for a cheaper lender.