Buying insurance as part of another sale often means that you pay more, or even buy a policy that will not cover your needs.  A classic example of this is Payment Protection Insurance sold alongside loans and credit cards.  The idea is that if you lose your job or fall ill the insurance will cover the repayments but there are often important exclusions meaning that claims do not get paid.   The Financial Services Authority is so worried that thousands of these policies may have been miss-sold that it is telling lenders to re-open 185,000 complaint files to make sure the original decisions were fair.

Another area where people are sold insurance as part of another sale is travel insurance sold by airlines and holiday companies.  It may be easy to tick the box and buy the standard policy you are offered but this could be very expensive and may not cover your particular circumstances.  It pays to check premiums elsewhere and it is always essential to read the documents to make sure you and your possessions will be covered for the trip you are planning. Some people are given travel insurance as a benefit when they sign up to credit cards or bank accounts.  Always find out whether this will cover your partner and family as well – if so will they be covered if they travel without you?  Are there age limits, for example only covering children under a certain age? Has anyone had any experience of this?


Have you been purchased insurance added on to another sale? Let us know what you think.