Hi every one.
Im geting a loan of 11500 Euro for a new car. the bank asked me if i would like to take out Payment protection insurance on it. i would just like to know has any one ever takeing out this before. and is it a scam. i just want to take it out incase i lose my job. any feed back would be much appreciated.
I wouldn't buy it myself as I don't think that it represents good value for money.
Why not increase the repayments for the car by the cost of the Payment Protection and therefore reduce the term of the loan?
It's not a scam. It's just like taking out insurance on your car except you're taking out insurance in the event you could not meet monthly repayments for what ever reason. However, you would be advised to read the terms and conditions before your sign up because there maybe some circumstances where your repayments might not be met by the insurance. Obviously, if you don't agree with same then I wouldn't sign up.
Payment protection is horribly bad value. Commissions paid to the bank/building society are in the region of 50-70%. Banks will always try get you to take it out as a result!
Bottom line is its up to you but its by no means obligatory. Must say I'd pass on it. As someone else said make sure you read the terms and conditions (especially re. cancelling) before signing up to anything
I definitely would avoid PPI.
See bold text above. If you lose your job why would insurance cover it?
There are very few conditions that you have to meet to be covered. Basically if you have an accident that prevent you from working you will be covered but not really for anything else. I used to sell it for credit cards and it's a pure scam. Left the job as soon as I could (less than a month) because I hated ripping people off.
It's very bad value for money in general.