Some insurance products are "useless and expensive" and people in the UK are wasting millions of pounds on them each year, a consumer group claims.

Which? said that buildings, contents, life and car insurance are essential, but other policies are often unnecessary and only pay out in relatively few cases.

It also claims many of the areas the policies say they protect are already covered by legislation or existing insurance deals.

Some companies now offer protection against identity theft, but Which? said any proven loses by fraudsters will be covered by banks.

And there are also policies on the market which offer cover for accidental death and injury, but this may be covered under standard life insurance policies, while mobile phones can be claimed for under home contents insurance.

Extended warranties and payment protection insurance were also criticised.

PPI covers repayments on credit cards and loans if the holder loses their job or is unable to work due to an accident or ill-health.

But the £5bn industry has been criticised by campaigners who believe the cover is overpriced and being mis-sold to people who will never be able to claim on it.

Tony Levene, the author of the Which? Money Saving Handbook, said: "You can buy insurance to cover yourself against almost any conceivable risk - even alien abduction.

"The insurance industry's favourite phrase is 'peace of mind', but it uses this to justify policies that cost a lot and are almost impossible to claim against.

"Instead of just blindly following what the salesman says, people should carry out a risk assessment of their own and make an informed choice about whether they actually need the insurance, and whether it's worth the premium."

Nick Starling, director of general insurance and health at the Association of British Insurers, added: "It is important that people look into their individual circumstances to ensure they have adequate insurance for their needs, particularly for life changing events such as unemployment and ill-health.

"The sale of insurance is regulated but consumers should also be asking questions so that they can decide if a product is right for them.

"As the Financial Services Authority has said, when sold correctly, payment protection insurance provides valuable protection for many customers."

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