Insurer claims to undercut high street competitors by a twelfth
Britishinsurance.com has launched a new loan protection insurance policy, offering borrowers cover at a fraction of the cost available on the high street.
Launching its loan protection cover, Britishinsurance.com said it found high street providers were still cashing in at customers’ expense, and charging up to 12 times more for their policies.
Simon Burgess, managing director of Britishinsurance.com, said he was happy to offer such excellent value to consumers, but worried that too many still fell into the clutching arms of high street banks and building societies.
“There is simply no excuse for providers to be charging such high prices and there can be no way in which to justify them. It is incredible that the FSA has not taken action to abolish this sort of practice, which fails to treat consumers fairly on so many different levels.”
Burgess said the industry needed not only to stop providers charging outrageous prices, but also educate consumers to the fact they were being ripped off, and show them how easy it was to take out protection insurance independently of their loan.
This comes at a time when the market is under review from the Competition Commission and has been blasted for poor practice by the Office of Fair Trading.
“Loan protection continues to be used by many banks and building societies as a way to swell profits rather than cater for customers’ needs,” said Burgess. “In many instances the policies being offered by the high street providers are not even as comprehensive as those from the independent providers and yet they are vastly more expensive. The sooner consumers can be educated to start voting with their feet the better.”