PCH contract insurance

Colin18

I'm about to take out a personal contract hire to replace my company car, do I need to have insurance to cover payments if I was to be made redundant. 

AdrianC

Do you NEED to have? No.
Might you PREFER to have? Only you can answer that.

Hmm, let me think - insurance to protect payments in the event of unemployment. I wonder if there's a snappy name for that...? IPP, maybe? Nah...

Ectophile

It's up to you whether you need to.

But PCH contracts are totally inflexible.  Once you have signed the contract, they expect to be paid on time every month, for the entire duration of the contract.  There is no voluntary termination system like HP contracts.

sweetsand

Ectophile said:

It's up to you whether you need to.

But PCH contracts are totally inflexible.  Once you have signed the contract, they expect to be paid on time every month, for the entire duration of the contract.  There is no voluntary termination system like HP contracts.

Great post and very, very help to OP, IMO and anyone else thinking about that.
As the poster stated OP, your choice but IMO the post I quoted makes good reading

ATB

Sandtree

The only insurance that covers unemployment is ASU but its more commonly known as PPI.

Your first problem will be virtually no one is selling ASU at the moment, there are a few who are selling just AS (ie they've dropped the unemployment element) but they wouldn't cover you for your concern. The second problem is that ASU typically only pays for 12 months, a few are 18 or 24 months, and whilst probably more of a risk on the accident or sickness side in the current job market are you confident of finding an appropriately high paid role within 12 months? Obviously more of a concern on a longer lease agreement.

ASU/PPI obviously has a lot of negative press but that is much more around historic sales techniques than the actual product itself. It is ultimately a budget product (PHI is the full fat version but it doesn't typically cover unemployment at all) but its not an intrinsically poor product if you know what you are buying. 

macman

If you think you are likely to be made redundant, then maybe time to think again about changing your company car for a PCH just now?

born_again

https://www.money.co.uk/income-protection-insurance/income-protection-insurance-redundancy.htm