Is tyre and rim insurance worth it?

Our tyre and rim insurance infographic explains what tyre and rim insurance really covers, the average cost and claim and gives you some important things to consider before you buy this type of insurance from a car dealer.

View the accessible text version of the infographic

Is tyre and rim insurance worth it? (Accessible text version)

What does tyre and rim insurance cover?

Damage to tyres and rims due to:

  • Blowouts
  • Punctures

Policies do not usually cover damage from:

  • Accidents
  • General wear and tear
  • Driving on roads not regularly maintained

Average costs and claims for tyre and rim insurance

  • Average policy cost1 - $414
  • Average policy claim1 - $341

Australians paid $42.7m in total premiums but only received $3.7m in claims2

How many people claim on their tyre and rim insurance?

Only 1 in 23 people made a claim on their tyre and rim policy3

Things to consider before buying tyre and rim insurance

  • How much commission will your car dealer get if you buy this policy?
  • Would you be better off paying to replace your tyres and rims instead of buying insurance?
  • Are you already covered? Some tyre providers include a warranty for accidental damage.

Don't buy what you don't need. Find out more about tyre and rim insurance.

Sources

  1. Average upfront premium paid for new policies between 1/07/12 - 30/06/15 was $414, compared with $341 paid out in the average claim (ASIC report - A market that is failing consumers: The sale of add-on insurance through cars dealers).
  2. Total upfront premiums paid for new policies between 1/07/12 - 30/06/15 was $42.7 million, while $3.7 million was paid in claims (ASIC report - A market that is failing consumers: The sale of add-on insurance through car dealers).
  3. Number of successful claims on tyre and rim insurance policies between 1/07/14 - 30/06/15. ASIC data not publicly available.

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Last updated: 21 Aug 2017