National Warranty Company refunds

Refunds for warranties sold through car dealerships

National Warranty Company (NWC) is refunding $4.9 million to 6,367 customers who were sold warranties to cover repairs when they bought a car.

Here, we explain why the refunds are being offered, who is entitled to a refund and how to contact NWC if you have any questions about your cover, or the refunds process.

Why is National Warranty Company refunding customers?

The refunds are being paid because car sales staff were offered incentives to sell the warranties at the highest possible price. The more expensive the warranty, the larger the sales commission.

For example:

  • If the warranty was sold for $1500 - the car dealer would earn a commission of $500
  • If the warranty was sold for $2000 - the car dealer would earn a commission of $1000.

This kind of sales incentive was banned from 1 July 2013 as part of the Future of Financial Advice (FOFA) reforms.

See ASIC's media release for more information about the refunds.

Am I entitled to a refund from National Warranty Company?

You may be entitled to a refund if you bought a warranty, which covered car repairs, from NWC when you bought a car between 1 July 2013 and 28 May 2015.

Check your car loan documents if you're not sure whether you were sold a warranty or what brand it is.

When will NWC be contacting customers?

NWC will write to all affected customers with details of its refund offer in January and February 2018. If you have questions about your cover, you should contact NWC by emailing

If you receive a letter from NWC but do not contact them for a refund before the 28 day deadline, you can still claim your refund. NWC will explain how to do this when you contact them.

What will my refund be?

Your refund will be based on the difference between the cheapest price the dealer sold the warranty for, and what you actually paid.  

For example, if the lowest price for the warranty was $1,000 and it was sold to you for $1,500, you will receive a $500 refund. 

Most refunds will be $100 or less, but some customers may receive $2,000 or more. All refunds will include interest.

The refund will not affect the warranty. You will still be able to claim under the warranty if the claim falls within the terms of your policy.

What if I disagree with National Warranty Company's offer?

If you are not happy with the refund offered by NWC, you should send an email to

If you are not happy with how NWC handles your complaint, you can ask for it to be reviewed by their internal dispute resolution team. If NWC takes more than 45 days to respond to your complaint, or if you're not happy with the decision they make, you should contact the Financial Ombudsman Service on 1800 367 287 or visit

You can complain even if you accept NWC's refund.

For tips on lodging a complaint, see how to complain.

What if I am not covered by NWC's refund program?

NWC's refund program covers customers ASIC has identified were sold warranties as a result of unfair remuneration arrangements with the car dealer. 

However, other customers may also be entitled to a refund because of something that happened to them at the point of sale. For example, you may have only agreed to buy the warranty because the sales person said you had to have it to get the loan.

You can raise concerns about your policy or how it was sold to you by emailing NWC at

If you are not happy with NWC's response, you can contact the Financial Ombudsman Service on 1800 367 287 or visit

You can also receive information or help from:

Other refunds following ASIC's investigation into add-on insurance

ASIC has identified unfair conduct by a number of insurers who offer add-on insurance and extended warranties by car dealers or finance brokers. As a result, these insurers have agreed to refund over $120 million to customers who were sold these products.

For more information, see add-on insurance.

Benefits like commissions and sales incentives can influence the products offered to you. If you are being pressured into a sale it could be a sign the sales person wants to earn a commission, rather than because you need that product. You are not obliged to sign up on the spot, and you can always say 'no'.

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Last updated: 05 Dec 2018