MoneyExpert.com, an independent financial comparison website, says that in many cases consumers do not realise that PPI can be bought from separate providers unattached to the card company.

As a result, many cardholders are paying over the odds for the service, which can be over £500 over the course of a year for just a modest balance of £3,000.

“Many people don’t realise that they can purchase PPI with any major insurance broker – it doesn’t have to be an expensive add-on to their credit card,” said Sean Gardner, chief executive at MoneyExpert.com.

“What’s more, there are often exclusions in the policies which are not made clear to consumers when they sign up.”

Mr Gardner urged consumers to “consider specialist cover” for PPI because, he notes, “you are very likely to get a better deal elsewhere”.

To read more about credit card protection, click here.

© Adfero Ltd