AAI car dealer add-on insurance class action

Add-on insurance products are general insurance policies that are added on to the sale of a vehicle. They are often paid for by the loan that is taken out to purchase the vehicle.

The more common types of motor vehicle insurance such as comprehensive, third party property, or compulsory third-party insurance are not part of the AAI Car Dealer Add-On Insurance Class Action.

The common types of add-on insurance sold through car dealers are:

• Loan Protection Insurance (also referred to as “repayment insurance”, “consumer credit insurance” or “CCI”). This insures a borrower’s capacity to make repayments under a car loan, including insurance against sickness, injury, disability, death or unemployment;
  
  
• Motor Equity Insurance (also referred to as “guaranteed asset protection insurance”, “GAP insurance”, “shortfall insurance”, “equity insurance”, “equity plus insurance”, “cash benefit insurance”, “purchase price insurance” or “value protect insurance”). This covers the difference between what a consumer owes on their car loan and any amount they may receive under their comprehensive insurance policy, if the car is a total loss;
  
  
• Loan Termination Insurance. This covers the difference between what a consumer owes on their car loan and the market value of the car if they return it because they cannot make repayments due to illness or injury;
  
  
• Extended Motor Warranty (also referred to as “mechanical insurance”, “motor vehicle warranty” “mechanical breakdown insurance”, “extended manufacturers warranty”, “extended vehicle warranty insurance”, or “extended warranty insurance”). This covers the cost of repairing or replacing parts of the car due to mechanical failure after the manufacturer’s or dealer’s warranty has expired; and
  
  
• Tyre and Rim Insurance. This covers the cost of repairing or replacing damaged tyres and rims from blowouts, punctures or other road damage.

The Australian Securities and Investments Commission (ASIC) has undertaken extensive reviews into this industry. Its reviews suggested that add-on insurance sold through car dealers represents poor value for consumers. 

Registering your interest in the AAI Car Dealer Add-On Insurance Class Action will not expose you to any out of pocket costs. All costs in the AAI Car Dealer Add-On Insurance Class Action will be borne by Maurice Blackburn unless and until there is a successful outcome.

In the event of a successful outcome in the AAI Car Dealer Add-On Insurance Class Action, any costs payable to Maurice Blackburn will be deducted from, and will not exceed, any compensation that you are entitled to receive. All such costs are required to be considered and approved by the Court.

Nothing.

As a member of the class (and not the representative, in whose name the case has been brought) in the AAI Car Dealer Add-On Insurance Class Action, an adverse costs order may not be made directly against you in respect of the determination of the common issues in the class action. All costs in the AAI Car Dealer Add-On Insurance Class Action will be borne by Maurice Blackburn unless and until there is a successful outcome.

Registering your interest in the AAI Car Dealer Add-On Insurance Class Action is an expression of interest only. If you register your interest, it means that we can provide you with key updates about the class action. It does not mean that you are a group member or that you will be entitled to compensation.

Registering your interest is not required.

For information about the Allianz Car Dealer Add-On Insurance Class Action, please click here.

Otherwise, Maurice Blackburn is not considering any further class actions in relation to add-on insurance products sold through car dealers.

Maurice Blackburn was investigating potential class actions against a number of insurers regarding add-on insurance products sold through car dealers, however that investigation is now closed.

If you wish to pursue your own claim in relation to your add-on insurance product, you should be aware that strict time limits apply. The application of these limitation periods can be complex but in essence the rule is that if you do not make a claim in a court within six years of the date you paid for the insurance product you are barred from making a claim. While you may have a claim beyond the 6 year period for causes of action in mistake or fraudulent concealment, we cannot give you any advice on these causes. If you are concerned that a time limit is soon to expire or may have already expired we recommend that you consider obtaining legal advice from another lawyer.

You can consider pursuing a refund through the Demand A Refund campaign. We cannot assist you in pursuing this option.