If you’ve ever had a credit card, taken out a loan, or obtained financing to buy a car, you’ve probably unknowingly paid for unwanted insurance and are entitled to a refund.
Australians could be owed billions of dollars in unnecessary insurance costs, with most unaware they’ve been charged, according to insurance reimbursement experts Claimo.
In fact, just three statements on your bill could indicate that you are one of the millions of Australians who have paid for services you don’t need.
Claimo has taken on the big banks and so far has demanded over $10 million in refunds for 3,000 Australians.
Claimo director Nathan Mortlock said gains to date paled in comparison to the $10 billion reimbursement pool set aside by big banks to reimburse victims of unwanted insurance policies.
“Surprisingly, one in three Australians have policies that are often worth less than the paper they’re printed on,” Mortlock said.
How do I know if I am entitled to a refund?
Here’s how to check if you’re eligible for a refund:
View your credit card statements and loan agreements
Look for the words “credit card insurance”, “consumer credit insurance” or “loan protection”; it may appear on or near the “changes of interests” line
If you find these references, or similar, chances are you have been charged unwanted insurance and are entitled to a refund.
“We want every Australian to check their personal, home, car and credit card statements,” Mortlock said.
“It could be worth a lot of money, and in a time of skyrocketing day-to-day costs, those unwanted insurance reimbursements could prove to be a financial lifeline for some families.”
Claimo’s average refund is $3,700, with one customer getting a $70,000 refund and a $90,000 claim currently pending.
“Some insurance ‘just comes with the loan or the card’ and we don’t question that. People think these insurances are mandatory and they are not,” Mortlock said.
“What is more shameful, some of these insurances have often been billed as a compound percentage, which over time has cost consumers thousands, if not tens of thousands of dollars.”
What do you do if you think you have a complaint?
If you think you have been unnecessarily charged for insurance, you should contact a lawyer or claims adjuster.
They will be able to determine if you are eligible for a refund and will work with the ombudsman to obtain your refund.