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PPI Car Loans

What is it?

Car Loan PPI (Payment Protection Insurance) is designed to ensure your car repayments are paid if you were unable to work due to accident, sickness or redundancy. This insurance has been sold through banks, finance companies and main car dealerships for in excess of 10 years and would normally be taken out at the same time as the car finance.

Do I have it?

This insurance would most frequently have been sold when you purchased your car on finance. The premium would generally be charged as a single premium (Up-front) and added to the outstanding amount owed at outset. If you are unsure if this policy was taken out your bank statements from the period of the sale and original car finance documents would be a good starting point. If you cannot see any evidence of the cover and remain unsure if you had this type of policy, the provider of your car finance should be able to investigate further to establish any Payment Protection Insurance was added.

Signs that it was mis-sold

  • You did not know that you had taken out the policy, it was added automatically without your knowledge or you declined the policy.

  • The policy was not suitably explained to you. You were not given any information about how the plan worked. 

  • You were not able to claim on the policy due to the exclusions, for example you had a pre-existing medical condition.

  • You already had sufficient cover in place, for example through your employer or an alternative provider. 

  • You were pressurised into taking out the policy.