We specialise in claiming back what is rightfully yours

Loan Cover

Loan Cover is one of the names used for payment protection insurance that is applied specifically to loans. As with other forms of payment protection cover, loan cover is designed to insure the policyholder against loss of employment resulting from accident, sickness or involuntary unemployment.

The cost of loan cover is usually applied at the start of a loan as a lump sum. The premiums for loan cover can vary, but are often somewhere between 13%-25% of the loan value, although cases have been found where policies cost up to 56% of the loan value. On a personal loan of £15,000 you may, therefore, expect to pay in the region of £1,950-£3,750 for the cover. It is important to note that this cost will be added to the overall borrowing and usually attracts interest at the same rate and may significantly increase your overall debt or your repayment term.

Loan cover has been heavily criticised with many commentators suggesting it does not offer the level of protection customers expect. A 2008 survey by the Competition Commission seemed to confirm this when it was revealed that only 15% of customers who tried to use the loan cover received a payout.

One reason why the payout rate may be so low is that many loan cover policies have been mis-sold. If you think you are a victim of mis-selling, complete our quick claim form today.