Payment protection insurance
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What is payment protection insurance?
Payment protection insurance (PPI) is a type of income protection insurance that covers your monthly debt repayments on things like loans, mortgages and credit cards if you experience unemployment.
How does payment protection insurance work?
PPI policies are designed to cover a single debt such as a personal loan from one lender, and if you're unable to work your insurer will pay you for a set period of time - which you'll use to make your repayments.
These insurance policies are usually short-term and premiums vary based on factors such as the type of insurance you choose, the lender, loan repayment amount, and your policy term.
What does payment protection insurance cover?
A payment protection policy generally covers your repayments if you:
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Have an accident and can't work
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Are made involuntarily redundant
Do I need payment protection insurance?
Payment protection insurance is worth considering if you think you wouldn’t be able to make your loan, mortgage or credit card payments if you have to stop working or face unemployment. However it might not be necessary if you have savings or other sources of income on which you can rely.
If you think you've been mis-sold PPI with a store card, credit card, personal loan, or a business loan, for example, you can contact a financial adviser who can look into this and submit a claim with the Financial Ombudsman if necessary, who will be able to confirm if you have been mis-sold PPI.
Did you know...
Just 6% of the population had any form of income protection (including employer sick pay schemes) in 2021, according to the Income Protection Task Force (IPTF).
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How do I get a payment protection insurance quote?
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Tell us about yourself
Including what you want to protect, over how long, and a few details about income and employment
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We’ll search the market
With our partner ActiveQuote, we’ll find the best deals for you
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Compare your results
We’ll show you the results of your search, so you can compare deals from a range of providers
What’s the difference between PPI and mortgage protection insurance?
Mortgage payment protection insurance (MPPI) and payment protection insurance are both types of income protection, and they’re each intended to help you repay certain debts.
However some mortgage payment protection policies are targeted towards homeowners, so they’ll payout an insurance claim amount enough to cover your mortgage payments as well as a certain extra percentage to go towards household bills.
MPPI policies can also offer cover lasting until you reach retirement age, while payment protection insurance is usually sold on a shorter-term basis as it’s covering other debts.
What are the alternatives to PPI?
If you’re looking for alternatives to PPI, you may want to consider:
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Mortgage payment protection
Which covers your mortgage payments if you can’t work
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Sick pay
Using your sick pay if you get it
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Savings
Using your savings if you have enough
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Critical illness cover
Which pays out if you become critically ill
Why is PPI controversial?
In 2011 a scandal broke about the PPI industry as many financial institutions had mis-sold it to customers, or implied that it was a necessary part of a bundle with their credit card or loan product. As a result billions have been paid out in compensation, giving PPI a bad reputation – however it can still be a useful product in the right circumstances.
What isn’t covered by PPI?
Before you take out payment protection insurance, keep in mind that your policy may not cover you in the following circumstances:
For the duration of your deferral period, usually for the first week to 90 days
If you contract certain illnesses – these will be listed in the policy documents
If you have any pre-existing medical conditions
If you’re retired
If you’re unemployed
Will I be covered immediately?
Most insurers have a deferral period at the start of your policy, during which you can’t make a claim – this will normally last between a week and 90 days. Policies that don’t have this, or that have shorter deferral periods, are likely to be more expensive.
Will I be covered with a pre-existing condition?
Most insurers won’t cover claims relating to an illness you already have before taking out the policy, such as diabetes or a heart condition.
How does MoneySuperMarket make money?
We get paid by the companies we work with, but the payment we get doesn’t have any bearing on the information we provide. We get paid in different ways, depending on the type of product or service you buy through us. Our goal is to search deals from as wide a range of companies as possible, but we only show results from our partner providers.
Our comparison service is, and will always be, free to use.
Why should I use a price comparison website?
One of the best ways to get the lowest prices and best deals is to compare quotes from different companies. We do the work for you, comparing quotes side-by-side and giving you all the information you need so you can choose the right deal for your needs and your wallet.
We don’t give recommendations or financial advice, but we give you clear information so you can choose financial products that suit your circumstances.
Does MoneySuperMarket work with all the providers on the market?
No, not every company can be included in our service. This is because some companies don’t want their products included on comparison sites, and some decide that they would rather not pay a fee. There are also a few smaller providers who can struggle to cope with the volume of customers that can find their products if they appear on MoneySuperMarket.
Our goal is to search deals from as wide a range of companies as possible so that you can choose the deal that suits you.
Is van insurance eligible for SuperSaveClub and rewards?
Yes, you can earn SuperSaveClub rewards when you buy van insurance through MoneySuperMarket.
This includes:
Up to £15, which you can withdraw as a pre-paid Mastercard or a gift card for brands like Sainsbury's and Amazon.co.uk
Free Days Out pass (worth £180), which gives free entry to a range of UK attractions
Cashback of up to 10% when you spend at brands including eBay, Just Eat and Argos
To earn SuperSaveClub rewards on purchases you must:
Sign up to SuperSaveClub (it's free)
Be signed in to your account when you make the purchase
More information can be found on our SuperSaveClub homepage.
Is van insurance eligible for Price Promise?
Yes, van insurance is included in our Super Save Price Promise.
If you buy through us then find the same deal for less we will:
refund the difference
give you a gift card worth up to £20
Terms and conditions apply. More information can be found on our Price Promise page.
Reviewed on 5 Dec 2025 by
