Australia markets close in 1 hour 21 minutes

    +37.40 (+0.51%)
  • ASX 200

    +38.70 (+0.54%)

    +0.0015 (+0.22%)
  • OIL

    +0.64 (+0.90%)
  • GOLD

    +4.10 (+0.23%)

    +384.55 (+1.54%)
  • CMC Crypto 200

    +11.28 (+2.86%)

    +0.0007 (+0.11%)

    -0.0010 (-0.10%)
  • NZX 50

    -20.77 (-0.18%)

    +140.10 (+1.22%)
  • FTSE

    -17.02 (-0.23%)
  • Dow Jones

    +183.56 (+0.55%)
  • DAX

    +3.37 (+0.02%)
  • Hang Seng

    +274.12 (+1.41%)
  • NIKKEI 225

    +354.47 (+1.29%)

1 in 3 Aussies could be eligible for billions of dollars

Refund: A composite image of a person removing $100 notes from a wallet and people crossing the street in the Sydney CBD.
Millions of Aussies could be eligible for billions of dollars in refunds. (Source: Getty)

If you’ve ever had a credit card, taken out a loan or obtained finance to buy a car, you’re likely to have unknowingly paid for junk insurance and are eligible for a refund.

Aussies could be owed billions of dollars in unnecessary insurance fees, with most unaware they have been charged, according to insurance refund experts Claimo.

In fact, just three statements on your bill could point to the fact that you’re one of the millions of Aussies who have been paying for services you don’t need.

Claimo has taken on the big banks and so far, claimed more than $10 million in refunds for 3,000 Australians.

Claimo director Nathan Mortlock said the wins to date were nothing compared to the $10 billion refund pool set aside by the big banks to reimburse victims of junk insurance policies.

“Shockingly, one in three Australians have policies that are often worth less than the paper they’re printed on,” Mortlock said.

How do I know if I’m eligible for a refund?

Here is how to check if you may be eligible for a refund:

  • Look at your credit card statements and loan contracts

  • Look for the words ‘credit card insurance’, ‘consumer credit insurance’ or ‘loan protection’; it may appear on or near the ‘interest changes’ line

  • If you find these references, or similar, chances are, you’ve been charged junk insurance and could be entitled to a refund.

“We want every Australian to check their personal, home, car and credit card statements,” Mortlock said.

“It could be worth a lot of money, and at a time when everyday costs are spiraling, these junk insurance refunds could prove to be a financial lifeline for some families.”

The average Claimo refund is $3,700, with one client achieving a $70,000 refund and a $90,000 claim currently pending.

“Some insurances ‘just come with the loan or card’ and we don’t question it. People think these insurances are mandatory and they’re not,” Mortlock said.

“What is more shameful, some of these insurances have often been charged as a compounding percentage, which over time, has cost consumers thousands, even up to tens of thousands of dollars.”

What do you do if you think you have a claim?

If you believe you have been unnecessarily charged for insurance, you should contact a lawyer or claims expert.

They will be able to determine whether you are owed a refund and will work with the ombudsman to get your refund.

Follow Yahoo Finance on Facebook, LinkedIn, Instagram and Twitter, and subscribe to the free Fully Briefed daily newsletter.