What is Tyre and Rim Insurance?
Tyre and Rim Insurance covers the cost of repairing or replacing a vehicles tyres and rims if they are punctured, suffer a blowout, or are damaged due to an unforeseen accident or road hazard (such as driving through a pothole).
Why was Tyre and Rim Insurance purchased?
This type of insurance is usually sold as an add-on insurance alongside the purchase of a new car. Most car insurance policies will exclude any damage done to tyres and rims, which requires you to take out another policy if you want that coverage. What often isn’t communicated though, is that when you look at the overall cost of this type of insurance vs the cost of your cars tyres and rims, you may actually end up forking out more for the insurance policy than you would if you actually had to replace your tyres and rims. The policies do have a limitation of cost per claim also.
Unless you have expensive rims and tyres on your car, this type of insurance might not be necessary for most people, considering that repairing or replacing a tyre can sometimes cost you as little as $50. Car dealers can also get commissions on selling these add-on policies to clients, which can result in insurance products being mis-sold to clients who probably don’t need them. In those scenarios, clients could be entitled to a Tyre and Rim Insurance refund.
Examples of mis-sold Tyre and Rim Insurance
Please find below some common examples of how Tyre and Rim Insurance can be mis-sold to customers, which could entitle them to a Tyre and Rim Insurance refund:
- Sold to clients who have had their tyres recapped
- Sold to clients who use their car for uber/taxi or courier services for work
- Sold to clients without explaining to clients that if your tyres or rims are punctured or damaged due to vandalism, you cannot claim
- Including this add-on insurance in your original car insurance policy without notifying the client that it is optional
How do I know if Tyre and Rim Insurance was unknowingly added to my policy?
Unfortunately, one of the most deceitful forms of mis-sold insurance comes from lenders discreetly including it into your original insurance documentation and paperwork without you knowing about it or having agreed to it. Your Certificate of Insurance that is provided to you should have an itemised listing of the insurance products you have purchased, along with important information such as:
- Your policy number
- Period of insurance
- Cost or Premiums
If the policy wording or the information proves to be confusing or unclear, you can contact your insurance provider and ask them to explain all of that itemised information in detail.
Am I entitled to Tyre and Rim Insurance refund? How do I claim this back?
Thankfully this is where our industry expertise comes in! We take care of the entire claims process for you:
We take care of the entire claims process for you:
- Provide us with your details, including loan contracts if you can (If not we can help)
- We analyse these details and call you to finalise your claim>
- We submit your refund claim(s)
- You get paid!