HOW does it feel to have your insurance policy product disclosure statement singled out for ridicule on one of the country’s most popular news websites just days before an ASIC report on sharp practices selling add-on insurance in the car industry turns the whole issue into mainstream news?
Ask Toyota Finance, that is what has happened to them over the past week.
A Supplementary Product Disclosure statement from Toyota Finance was reproduced by news.com.au with the following lines highlighted under the headline, “Toyota letter admits its product is junk”.
- “Insurance purchase in this way is often more expensive than similar cover purchased through other methods.”
- “The types and levels of insurance provided may not be appropriate for you especially if you have no dependants or already have cover sufficient to meet your needs through other policies.”
- “Including the premium for insurance as part of the financed amount increases the real cost of the insurance due to the interest payable on the financed amount.”
According to the report Toyota Finance has since agreed to refund at least one customer a total of $3310. Questions to Toyota Finance on the number of other refunds and their total value went unanswered as GoAutoNews Premium closed for publication.
Toyota Finance may be the first to have to write an embarrassing product disclosure statement to their potential add-on insurance customers, but given the impact of this week’s ASIC report they won’t be the last.
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