Which?: Poor peace of mind insurance rubbished
Brits are wasting thousands of pounds on useless, unnecessary and expensive insurance.
The warning comes from Which?, with the organisation claiming 'peace of mind' policies are often sold when people already have cover or protection is unnecessary.
The consumer watchdog also hit out at obstacles that make claiming on insurance policies difficult.
In particular a new Which? guide - the Money Saving Handbook by Tony Levene - reveals ID fraud cover is unnecessary as losses are met by banks, unless the victim of the ID fraud was complicit in the crime or fell victim due to carelessness, in which case an insurance policy is also unlikely to pay out.
The benefits of mobile phone insurance are also put into doubt, as stolen or lost handsets should be covered by existing contents insurance.
Contents insurance can also sometimes cover possessions lost overseas, so travel insurance need not cover baggage.
Accidental death and injury can also be covered by standard life insurance policies.
Mr Levene 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."
He explained: "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."
The top five insurance policies to avoid, according to the Which? Money Saving Handbook, are: extended warranties; identity theft cover; payment protection insurance (PPI); mobile phone cover, and accidental death and injury cover.
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