Are you looking forward to buying a new car? Do you want to ensure that you got everything covered without having to pay too much? Unfortunately, some salespersons will try to mis-sell you a bunch of add-on insurance that will maximise their profits, even if you don’t need it. These are also known as junk car insurance, and it can even pay them between 65% to 90% of your premium. Imagine the money you waste that goes straight into their pockets! Fortunately, you can still salvage the money you spend with the help of companies like Get My Refund.
In most cases, you are already covered by your primary insurance, so these add-on insurance are useless, and you’re just paying without benefiting from it. So in times like these, you should double-check the policies you have and see what other add-ons you are paying for. In reality, car dealers love to sell you useless extras, and you don’t even need them. So what kind of junk car insurance is out there? Let’s find out here.
Tyre & Rim Insurance
Tyre and Rim Insurance is an add-on that’s sold to consumers who just bought a car. This kind of insurance is used to replace a consumer’s tyre and rims when they suffer a blowout, get into an accident or a road hazard, or are punctured. Most car insurance policies available will exclude any damages done to tyres and rims, which means you need to take out another policy if you want that kind of coverage. But most of the time, car dealers will get commissions when they sell these kinds of policies, which means they might sneakily sell this to customers who don’t need it anyway
GAP Insurance or Guaranteed Asset Protection
GAP Insurance is an add-on insurance that will cover the difference between your insurance pay and your finance shortfall amount that you have left on your loan. It applies if your car gets written off, if it gets damaged due to an accident or, in an unfortunate event, that your vehicle gets stolen.
GAP Insurance should only be offered as a choice, which means it’s offered to you, suggesting that it can give you peace of mind if ever you cannot cover the whole amount that you owe on your finance agreement. So you don’t need to cover the amount of a car you don’t have anymore. However, some lenders will add this without your knowledge, which means you are entitled to a GAP Insurance refund.
Extended Mechanical Warranty
Extended Mechanical Warranty is much like GAP Insurance, where it covers the costs if you ever get into an accident where the card gets damaged or written off. But instead of paying off your car loan, Extended Mechanical Warranty will pay off the repairs to your damaged vehicle. Three primary types of Extended Mechanical Warranty are Factory Warranty, Manufactures Insurance Warranty, and Aftermarket’ Extended Mechanical Protection’. A motor dealer usually organises this kind of warranty through an insurance company. Still, it’s practically useless because consumer fair trading covers you for a certain amount of years.
These policies are a rip-off because of their rules, which renders them useless if you can’t use them. For example, Tyre and Rim Insurance will not cover your car if the cause for your tyre’s damage is vandalism. So in cases like these, getting a junk insurance refund is the best choice.