If you have bought a second-hand or used car you may have been sold extended warranty. This is different to new car warranty or manufacturer’s warranty, which is a warranty guaranteed for a certain period after purchasing a brand-new car.
Extended warranty is a product which may have been added to your used car and often fall into the junk insurance category. This is because these warranties often have limited cover and extremely complex terms and conditions which will likely prevent you from claiming on the policy. If you have paid for an extended warranty policy, you may be eligible for a refund.
Often, extended warranties have a clause which gives discretion to the insurer as to whether they payout your claim. This means that although you may believe you are eligible, the insurer may find reasons why you cannot claim under the extended warranty policy. The insurance policy may have clause which explains that the insurer is not obliged to pay all claims. For this reason, the claims ratio on Extended Warranty products are poor.
Although many insurers who have previously had such clauses included in their policy disclosure statements have now amended them; you may still be eligible for a refund.
Can I get a refund on extended warranty?
If your used car has had issues previously, you may be excluded from claiming on the policy. Similarly, to pre-existing conditions on other insurance policies, extended warranties often exclude pre-existing conditions on your used car.
Extended warranty policies may provide limited value. If you have ever bought a used car, you may have been sold an extended warranty policy or it may have been added without you knowing.
The Royal Commission into Banking Misconduct
The Royal Commission into Banking Misconduct explored the mis-sale of extended warranty policies. It found that such policies were complex, and the consumer had little understanding of the policies.
There are many reasons why you may be eligible for a junk insurance refund. Claimo are experts in add-on insurance products and currently have a 96% success rate.
We are Australia’s number one complaint management company helping Aussies get back millions in junk insurance policies. Add-on (or junk) insurance can appear on your contract or statement as several names.
Claimo offers a free service to help check your documents to identify whether you have paid for any consumer credit insurance or GAP insurance product.