“Brazen tactics selling ‘junk’ add-on car insurance should be outlawed, consumer advocates say”

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Warranty companies are continuing to use questionable sales tactics to cold-call customers and lure them into add-on car products with little value.

Key points:

  • Wang Jun was signed up for extended car warranty after a call he did not understand
  • Consumer advocates say the insurance is not worth the paper it’s written on
  • The ongoing tactics have led to calls for tightening of regulation around cold-calling

The Consumer Action Law Centre (CALC) has labelled add-on car insurance as “junk” and not worth the paper it is written on because of the poor payout rates and hefty commissions of up to 90 per cent for salespeople.

Read the full ABC News story here.

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