What if I've already got expensive PPI?

If you already have a loan with PPI, some lenders allow you to cancel it while keeping the loan - and since regulatory changes last year, this is becoming increasingly common. This means it's possible to switch PPI to a standalone provider without changing the loan; useful for people whose credit score has deteriorated or face redemption costs for the loan itself.

Lenders mightn't make it easy though. They can delay on giving illustrations, and most customer service reps fail to understand the issues. Some banks simply don't allow separate PPI cancellations at all.

It does seem as though more lenders are currently making the move towards a more flexible policy though, but this may not apply to a policy you took out a few years ago so always check your own terms and conditions. 

A Warning

Most new policies are void if there is a forseeability of redundancy or pre-existing conditions at the time they are taken out, so don't change policy if this is your situation. For more information, see Cutting the Cost of Existing Loans.

Here's a round-up of a few lender's policies. Where you can cancel separately it's worth remembering that the amount of rebate is not pro rata but will depend on the length of your loan and the period of time that has passed when you ask to cancel.