About

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Too many Australians are being sold junk insurance and rubbish warranties.

Stop Selling Junk helps you complain, demand your money back, and tell insurers and warranty companies to stop selling ‘add ons’ you don’t need.

 

What is an 'add-on' insurance or warranty?

We mean an insurance or warranty that you didn’t originally mean to buy—it’s added on at the checkout when you go to buy a car, a car loan, credit card or personal loan.

It usually works like this:

 

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You approach a business, looking to get a loan, a credit card or buy a car.

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You speak with a salesperson and choose what you want to buy.

buy this

Usually when the salesperson is preparing the paperwork, they suggest you also buy insurance or a warranty along with the loan or the car you’re already buying. The insurance or warranty is the ‘add-on’.

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The salesperson usually gets paid extra for each ‘add-on’ product they sell (a commission). These commissions can be a lot of money, up to 70 or 80 per cent of the insurance or warranty.

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If you applied for finance (like a car loan, personal loan or credit card) the ‘add-on’ insurance or warranty gets added to that loan, so you pay extra interest as well.

What's the problem?

These insurance policies and warranties are usually very low value. We’ve seen cases where people are tricked into buying ‘add on’ insurance and warranties that are virtually useless to them. Some customers buy the ‘add-on’ because they were told they have to buy it to get the loan. We’ve also seen cases where people don’t even realise they’re buying it!

The ‘add on’ sales process creates bad practices. The high commissions encourage salespeople to use dishonest tactics to make a quick buck. It’s designed to make you buy on impulse and is proven to lead to you into buying products that are over-priced, that you don’t really understand, or that you don’t even know you’ve bought.

For more detail on the problem, look at our two reports on add-on products

The Australian Securities and Investments Commission (ASIC) has also been vocal about the problem of ‘add on’ insurance.  Read the two reports here:

What are we trying to do?

Australians are unfairly losing their hard earned money through these ‘add on’ products. We want insurers and warranty companies to stop selling this way. We want them to stop selling junk.

I want to know more about these products