What Is Junk Car Insurance?
Junk insurance refers to unnecessary or low-value add-on insurance products sold alongside a car purchase or car loan — often without proper explanation or consent. These include:
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Junk insurance refers to unnecessary or low-value add-on insurance products sold alongside a car purchase or car loan — often without proper explanation or consent. These include:
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Consumer Credit Insurance (CCI) – Supposedly covers loan repayments due to sickness, unemployment or death, but is often sold to people who would never be eligible to claim.
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Guaranteed Asset Protection (GAP) – Covers the difference between the loan balance and your car’s value if written off, but may already be covered by your existing policy.
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Mechanical Breakdown Insurance or Add-On Warranties – Duplicate protections already available under Australian Consumer Law (ACL).
Were You Sold Junk Insurance?
Millions of Australians have been unknowingly sold junk insurance by dealerships and lenders. You may have paid thousands in hidden premiums for coverage that was never explained — or would never pay out.
Signs you’ve been mis-sold include:
- Insurance added to your car finance without your knowledge.
- Confusing documentation or fine print with unfamiliar insurance charges.
- Being told the insurance was “compulsory” or “part of the loan.”
You May Be Entitled to a Refund
If you’ve paid for junk insurance, we can help you:
- Review your car loan and purchase documents.
- Identify junk insurance or unnecessary add-ons.
- Formally dispute the charges with the dealership, lender or insurer.
- Claim a full or partial refund.
Contact us today and we’ll assess your eligibility and guide you through the claims process. We’ve helped many consumers challenge junk insurance and recover thousands of dollars.