British Insurance recently conducted a mystery shopping survey and found that consumers are paying up to 605 per year too much for their loan protection cover and 225 for mortgage cover.
Simon Burgess, managing director of British Insurance says half of the average credit card spend on Christmas shopping this year is needlessly going on payment protection insurance.
With major credit card providers predicting that consumers will fork out an average of 1,270 on their cards in the run up to Christmas, British Insurance is urging consumers to shop around for cover and turn premium over-spend into presents.
Burgess says: “The money wasted on inflated premiums could have gone towards buying this years gifts and groceries or contributed towards a Christmas holiday.
Consumers are instinctively keen to shop around for the best deal when it comes to goods, so why not payment protection? You cannot ignore savings of over 600 a year for loan and more than 200 for mortgage cover think of the presents that can buy.”