If you’ve bought a car, you might also have been sold a number of add-on products including an Extended Warranty, Consumer Credit Insurance and Gap Insurance.
You can also read about how add-on insurance works here.
An extended warranty can cost $1,000s, and if it’s added to a car loan, you might be paying interest on it too. These products can be very low value. Don’t forget that you might already have rights under the Australian Consumer Law if something goes wrong with your car! These exist even if you don’t buy a warranty. Read more about extended warranties here.
Consumer Credit Insurance is sometimes called other names such as Loan Protection Insurance. If you have a credit card, you might also be paying premiums for insurance. This would usually be Consumer Credit Insurance, sometimes called other names such as ‘Mortgage Protection Insurance’. You might not even remember agreeing to the insurance!
The premiums can add $1,000s to your loan and you might also be paying interest on them. These insurance policies can be low value and might not be suitable for your needs. Read more about Consumer Credit Insurance here.
You might also have bought Gap Insurance. This can add $100s to your loan and might not be suitable to you. These policies can be very low value. Read more about Gap Insurance here.