Car Loans customers or anyone borrowing in the current climate could find single payment protection insurance (PPI) expensive, it has been claimed.

Lucy Widenka, personal finance campaigner for consumer watchdog Which?, explained some of the pitfalls related to this type of product.

It requires the borrower to pay the full price of the insurance upfront - although there can be drawbacks, Ms Widenka said.

Often, people end up paying interest on both the loan and the PPI, although the cover itself might not actually last as long as the debt does.

In addition, it can be "quite limited" due to various exclusions that would lead some consumers to be exempt without their knowledge.

Some providers were not being completely clear about how much it costs, she added.

"The customers weren't necessarily told that it was optional," Ms Widenka stated.

"It is a badly designed product, it is often mis-sold and it can be expensive."



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