One couple paid PPI totalling almost half of their entire loan, the group claims.
One of the worst-value Payment Protection Insurance (PPI) products ever has been reported by Which?
The consumer group, which is lobbying to have firms' miss-selling of the insurance censured by regulators, said that one UK couple paid £22,568 for PPI on a loan of £56,000.
PPI is designed to protect against a policyholder losing his or her job or suffering illness and therefore being unable to meet loan repayments. However, it has been criticised for providing poor value for money and an inadequate level of cover - and for being miss-sold by providers alongside the loan rather than as an added, optional extra.
Responding to these calls, City regulator the Financial Services Authority has sanctioned 13 separate providers for PPI-related offences, with fines of up to £1 million levied.
Which? personal finance campaigns manager, Doug Taylor, said: "The fact that firms are still being fined for PPI failings shows that the problem won't go away on its own and PPI's relatively low profile means the number of complaints doesn't necessarily reflect the number of mis-sold policies."
He added: "The FSA must do more to deter firms from mis-selling in the first place, ensuring that all victims of mis-selling are automatically compensated with a fair and robust system."
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