Taking out one PPI policy instead of several could help consumers save money, it has been suggested.
Consumers are paying out more than they need to by taking out a number of different payment protection insurance (PPI) policies when they could just purchase one that would provide cover for all of their major household bills, it has been claimed.
According to research carried out by the Post Office, one in five full-time workers has more than one PPI policy, yet they could save significant sums of money by taking out a single product. The Post Office calculates that a consumer with two PPI policies for a credit card and a loan could save up to £570 a year by replacing them with Post Office Lifestyle Protection Cover.
Duncan Caesar-Gordon, head of protection at the Post Office, said households are understandably looking for ways to save money during the current economic climate, pointing out that PPI - which can be a costly product - is often one of the first to be examined.
However, he stressed: "People shouldn't look to get rid of their protection altogether, especially as unemployment fears grow. People who are worried about being able to pay all their bills if they lost their income should look for one simple product that covers all their outgoings rather than having a separate policy for every loan and credit card."
PPI is currently the focus of an ongoing investigation by the Office of Fair Trading. Critics argue that many consumers are being mis-sold PPI policies because lenders are not making it clear that the product is optional or that they can shop around to find better deals from other providers.
