In a landmark decision that's set to benefit hundreds of thousands of Australians, insurance heavyweight Allianz has agreed to a colossal $170 million settlement.

This payout results from a class action lawsuit concerning the sale of car dealer add-on insurance products, described as 'one of the largest consumer class action settlements in Australia.'

It's a significant victory for consumer rights and could mean a substantial sum of money in the pockets of eligible Aussies.


The class action, spearheaded by law firms Maurice Blackburn and Johnson Winter Slattery, targeted the 'add-on' insurance products sold at car dealerships from 1 June 2006 to 27 September 2021.

The lawsuit accused these products of 'no, or very limited value' and alleged that their sale breached legal standards.

A spokesperson from Maurice Blackburn shared that the settlement, reached without Allianz admitting any liability, is expected to affect around 200,000 individuals registered to participate.

'This is a significant outcome for consumers—it is one of the largest consumer class action settlements in Australia,' a spokesperson said.

'The sale of add-on insurance through car dealerships was widespread during the claim period and had been criticised by the Australian Securities and Investments Commission (ASIC) over many years.'

Car buyers paid a staggering $1.6 billion in premiums yet received a mere $144 million in successful insurance claims.


To put this into perspective, car dealerships earned four times the commissions, raking in $602 million.

The proposed Allianz settlement is now awaiting court approval, with a hearing scheduled for 11 March to determine its fate.

Maurice Blackburn is contacting potential beneficiaries through text messages, emails, and postal notices to inform them about the settlement.

No immediate action is required for those in the group affected unless they wish to object to the proposed settlement.

However, it's crucial to note that only those who registered for the class action before the 15 July 2024 deadline, at 4 pm, may be eligible for compensation, should the court give the green light.


Individuals who are eligible for a share of the $170 million compensation fund include those who purchased a vehicle from a dealership between 1 June 2006 and 27 September 2021

They also must have bought add-on insurance products like Loan Protection Insurance, Motor Equity Insurance, Extended Motor Warranty, or Tyre and Rim Insurance issued by Allianz.

This also applies to those who became liable to pay or already paid a premium for these insurance products.

This settlement serves as a reminder of the importance of being informed and vigilant about the financial products we purchase.

It also underscores the power of collective action in holding corporations accountable.


If you believe you might be entitled to a share of the settlement, now is the time to check your eligibility and ensure you're registered.

Not every day is such a significant sum returned to consumers, which could be a welcome financial boost for many.
Have you been affected by the sale of these add-on insurance products? Share your story with us, and let's discuss the impact of this settlement on our community in the comments below.