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If you have had a car loan and paid Mechanical Breakdown Insurance or Extended Warranty you may be entitled to a junk insurance refund.
Mechanical Breakdown Insurance is also known as extended warranty.
If you have bought a second-hand or used car you may have been sold mechanical breakdown insurance. Mechanical breakdown insurance is different to manufacturer’s warranty which is a warranty that you get with a new car purchase.
Mechanical Breakdown Insurance (MBI) is a type of vehicle insurance that provides coverage for the repair or replacement of mechanical parts of a vehicle that have failed due to normal wear and tear. It is similar to an extended warranty and is typically offered as an add-on to a standard auto insurance policy.
MBI typically covers the cost of repairs or replacement of a wide range of vehicle components, such as the engine, transmission, drive axles, and electrical and electronic systems. Some policies may also cover additional components such as the air conditioning, navigation system, and audio equipment.
MBI is typically sold as an add-on to a standard auto insurance policy and can usually be purchased at the time of buying a new vehicle or within a certain period of time after buying a new vehicle. Some policies may be transferable to a new owner if the vehicle is sold.
There are generally two types of MBI: exclusionary policies and named-component policies. Exclusionary policies provide coverage for all parts of a vehicle, except for those specifically excluded in the policy. Named-component policies, on the other hand, only cover specific parts that are listed in the policy.
The cost of MBI varies depending on the vehicle make and model, the level of coverage, and the length of the policy term. Some policies may require a deductible, which is the amount that the policy holder pays out of pocket before the coverage begins.
It is important to note that MBI is not the same as a standard auto insurance policy, which is typically required by law and provides coverage for damages or injuries resulting from a collision or other accident. MBI is optional and is designed to provide coverage for mechanical failures that occur as a result of normal wear and tear.
MBI is a good option for those who want to protect themselves from the high cost of repairs for their vehicle. It can also provide peace of mind for those who have purchased a new or expensive vehicle and want to protect their investment. However, it is important to carefully review the terms and conditions of an MBI policy before purchasing it to ensure that it meets your needs and budget.
It’s also important to note that MBI is not a replacement for regular maintenance and taking care of your vehicle as per manufacturer’s guidelines. You need to keep your vehicle maintained, serviced and not neglect any issues that arise in order to keep it running smoothly and prolong its lifespan
Overall, Mechanical Breakdown Insurance (MBI) is a type of vehicle insurance that provides coverage for the repair or replacement of mechanical parts of a vehicle that have failed due to normal wear and tear. It is an add-on option to standard auto insurance policy and it’s important to carefully review the terms and conditions of an MBI policy before purchasing it to ensure that it meets your needs and budget.
Claimo offers a service to help check your documents or request relevant paperwork for free.
There are many reasons why mechanical breakdown insurance falls into the junk insurance category.
One reason is that they have rigorous requirements to get your claim approved. The terms and conditions of these policies are often complex and prevent your claim from being approved.
Another reason why you should not have been sold the policy is because discretion to fix your car is on the insurer as to whether they payout your claim. This means that the insurer may find reasons why you cannot claim, even though you believe you are eligible.
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 mechanical breakdown insurance products are poor.
If you have purchased mechanical breakdown insurance, you may be eligible for a refund.
If you have had previous issues with your used car, you may not be eligible to claim on the policy. Similarly, to pre-existing conditions on other insurance policies, mechanical breakdown insurance or extended warranty policies 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 Financial Services Royal Commission reported on the mis-sale of mechanical breakdown insurance and extended warranty policies. The Royal Commission confirmed that these policies were often complex with onerous terms and conditions that were difficult for consumers to understand.
Yes you can! With help from the Claimo claims team. We’ve helped so many Aussie’s retrieve lost money from GAP insurance premiums over the years.
We will work with the insurance provider to cancel your insurance policy and issue a refund.
We are Australia’s number one complaint management company with a 96% success rate. Claimo has helped Aussies get back millions in junk insurance policies.
Claimo work on a no refund no fee basis which means that if your claim is not successful, you don’t have to pay anything!
Claimo offers a service to help check your documents or request relevant paperwork. If insurance is located we submit a refund request on a no win no fee basis on eligible claims.
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