Anybody thinking about taking out payment protection insurance (PPI) on a loan should consider looking around for their quotes as money lenders themselves often charge the highest rates of interest, an industry expert has warned.

Speaking for Mint Financial Services, a network of independent financial and mortgage advisers that are regulated in the UK by the Financial Services Authority, Adrian Kidd suggests that PPI options on offer from banks tend to be among the highest-priced on the market.

"If you're taking out a secured loan or unsecured loan, and they sell you payment protection, that can really jump up the amount of money you pay. Banks generally have the highest payment protection plans in the market place," he said.

Mr Kidd also warns that many bank and building society staff can earn high levels of commission from selling PPI, making them all the more keen to sell policies that can spiral in price over short periods of time.

"If you work for a bank or building society you will get paid more commission on the payment protection plan and that will far outweigh the commission paid on a £25,000 loan.

"I've seen payment protection policies that have cost thousands over a five-year period."

Recent research by marketoracle.co.uk found that taking out the highest-priced PPI policy currently on the market for a 5k loan could result in added payments in excess of £750 over the course of just three years.