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Payment protection insurance (PPI)

Compare income protection quotes from leading UK providers through our partner, ActiveQuote[1]

  • Cover your monthly credit or loan payments if you're unable to work
  • Protect your financial commitments against accident, sickness and unemployment
  • Tailor your policy online to get the cover that suits your budget and needs


Payment protection

How can we help you with payment protection insurance today?

Key points

  • Don't automatically discount PPI because of the mis-selling scandals that've dogged the product's past
  • PPI is a form of short-term income protection that can insure your repayments in case you lose your job or find yourself unable to work
  • When you can claim and how much cover you have will depend on your policy and you should look out for exclusions
  • Consider state benefits plus other income protection, critical illness and life insurance options before committing

Payment protection insurance has a toxic reputation following multiple mis-selling scandals, but the right policy can be a legitimate form of short-term income protection, capable of covering payments for debts you may have on loans, credit cards and other financial commitments.

With the help of ActiveQuote[1] you can compare income protection insurance quotes that could offer cover for your outgoing payments in one quick and easy search.

Find the right policy from a panel of leading UK insurers, and take advantage of offline support from ActiveQuote's team of specialists who can offer fee-free, impartial advice.

You can take out an income protection policy to cover your financial commitments if you're unable to work due to accident and sickness, unemployment, or accident, sickness and unemployment (ASU).

Typical financial commitments people want to cover using PPI include vehicle, loan or credit card repayments.

Some income protection policies can offer much longer-term cover than that - our comparison software helps you look at these options alongside shorter-term options and to filter the available products according to your own needs and desires.

You choose how much you receive as a monthly benefit, bearing in mind that you can typically protect up to 70% of your gross annual income (payouts will normally be tax free).

Some insurers also offer the option of protecting the value of any employment benefits such as a company car or private health insurance.

Such benefits may also be known as benefits in kind, or P11D benefits.

Consider how much of that you want to insure as the amount of cover you choose will be reflected in your monthly premiums. Income protection

Our comparison software will ask you to enter your personal details, gross annual salary and desired level of cover.

You'll also be asked details about your current employment situation such as your occupation, how many hours you work, whether you're a temporary or permanent employee, and how long you've been in continuous employment.

On the results page you can compare each policy in an easy-to-use table that displays details of the monthly benefit, policy and benefit term and waiting period, plus background information on each product provider.

Subject to your circumstances, you'll either have the opportunity to purchase online or be given a number to speak to the insurance provider about your chosen product.

Did you know...?

  • The story of the PPI mis-selling scandal broke in 2011, and in 2012 there were 12,000 complaints a week coming in to the Financial Ombudsman

For further information you can talk to one of ActiveQuote's team of product specialists for fee-free, impartial advice that can help you find the right policy suited to your budget and needs.

If you'd rather do your own research, you could try our income protection guides, including frequently asked questions.

You'll find the answers to questions such as what is PPI and what cover options are available, plus guidance on how to choose the right product for your needs, and the exclusions and other factors you should look out for. Note that if you're receiving income protection payouts you may not be eligible for certain government benefits.

PPI mis-selling scandal and compensation claims

Financial institutions have been found to have mis-sold payment protection policies since at least the 1980s. Since the story of the scandal broke in 2011, many billions of pounds have been paid out to customers in compensation.

Policies were pushed onto people who may have had sufficient cover from another source, to those who didn't need such protection at all and to people who would have been ineligible to claim. What's more, many didn't even know they were taking out PPI - it was foisted upon them as a sort of 'bundle' with the credit agreement.

Making a PPI mis-selling compensation claim

  • Don't automatically accept offers from claim-handling firms to pursue a PPI claim on your behalf
  • Such firms will take a commission fee that you may have no need to pay
  • Do some research into how you can make a claim yourself and - if you're still unsure - seek independent advice

The peak of the fall-out from this seems to have come in 2012 when there were 12,000 complaints a week coming in to the Financial Ombudsman, but the issue is expected to remain live for many years to come.

As of March 2015 it was estimated that banks alone had paid out £24bn in compensation and around 4,000 complaints a week were still being made.

"Although numbers are slowly declining, it will be years before we can truly say this mis-selling scandal is over," said chief financial ombudsman Caroline Wayman.

The scandal spawned a further annoyance to consumers, as many received multiple phone calls, emails, texts and other messages from claim-handling firms trying to get them to use their services when pursuing compensation claims.

Such middle men will take fees which may well be disproportionate to the service they provide. If you think you're eligible for compensation, do some research into how you can make a claim yourself and - if you're still unsure - seek independent advice.

"Customers who are planning on applying for compensation should bear in mind that they don't need to go through a third party to claim," said Gocompare.com's Matt Sanders. "If you do it yourself you'll get all of your compensation."