Junk Insurance is a term used to describe add-on insurance policies that are essentially useless to the consumer that it was sold to.
According to the Consumer Law Action Centre in Australia, it is estimated that Australians could have been sold more than $60 billion worth of junk insurance over the past ten years. Many people had been sold policies they would never be able to claim on, and there were others who didn’t even know they had been sold certain insurance policies in the first place. Their data also showed that it wasn’t just banks selling these policies to consumers, but also car dealers, retailers and insurers. junk insurance refund