Add-on insurance products have often been sold to consumers through car dealers when purchasing a new or used car. Many of these products provided poor value to consumers.
Examples of these products are as follows:
Tyre & Rim;
Scratch & Dent; and
Mechanical.
These policies are often something consumers did not need or could not claim on. There can also be overlapping cover with comprehensive car insurance.
Australians have paid $42.7 million in Tyre & Rim insurance.¹The average premium for Tyre & Rim insurance is $414.² Customers could receive up to this amount back in refunds plus interest.
² Ibid.