You Might Be Entitled to Allianz’s $170M Settlement — Here’s How to Check!

You Might Be Entitled to Allianz’s $170M Settlement: If you purchased an add-on insurance product while buying a car from a dealership anytime between June 2006 and September 2021, you may be owed money from the massive $170 million class action settlement against Allianz Australia Insurance Limited and Allianz Australia Life Insurance Limited.

This landmark settlement follows allegations that Allianz misled consumers by selling certain insurance products that offered minimal benefit, were unnecessary, or overlapped with other coverages. While some policyholders are set to receive hundreds or even thousands of dollars in compensation, not everyone qualifies — so it’s essential to understand your eligibility, next steps, and how this settlement works.

In this comprehensive guide, we explain what the Allianz class action was about, which products are included, who can claim compensation, and how to ensure you’re in line to receive your share.

You Might Be Entitled to Allianz’s $170M Settlement

The Allianz $170 million class action settlement is a critical moment in protecting consumers from misleading insurance practices. While the compensation amounts will vary, this case stands as a powerful reminder that companies must be transparent and fair when offering financial products.

If you’re one of the thousands of Australians who registered before the July 2024 deadline, you could be receiving a payout soon. Be proactive in updating your information and keep an eye on your inbox. Justice takes time, but your participation in this class action could finally deliver the accountability — and compensation — consumers deserve.

What Is the Allianz $170 Million Class Action Settlement?

In recent years, scrutiny has grown around so-called “junk insurance” — add-on policies that are sold during car purchases but provide little real value. These products were often presented as required or heavily encouraged, without clear explanation of costs or benefits.

Maurice Blackburn Lawyers initiated the class action lawsuit alleging that Allianz misled consumers into purchasing these unnecessary add-on policies in breach of Australian consumer protection laws. These allegations included:

• Failure to explain the true costs and limited value of the products
• Improper sales tactics at car dealerships
• Lack of informed consent from customers

Rather than contest the allegations in court, Allianz agreed to a settlement, which has now been put forward for court approval. This means registered consumers may soon be compensated for products that should not have been sold in the first place.

Products Covered in the Settlement

Four specific Allianz add-on insurance products are covered in this class action settlement. If you purchased one or more of the following, you may be eligible for a refund:

1. Loan Protection Insurance

Covers vehicle loan payments in cases of illness, disability, or unemployment. Many buyers were not eligible for the benefits or were already covered elsewhere.

2. Motor Equity Insurance (a.k.a. GAP Insurance)

Covers the “gap” between the amount owed on a car loan and the insurance payout if the vehicle is written off. Critics argue that the benefit was often limited and unnecessary.

3. Extended Motor Warranty Insurance

Extends vehicle protection beyond the manufacturer’s original warranty. Often seen as redundant or overpriced.

4. Tyre and Rim Insurance

Covers damage to tyres and rims. Many consumers were not made aware that this coverage was optional or rarely used it.

Am I Eligible to Receive Compensation?

You could be eligible for a refund if you meet the following criteria:

• Purchased one or more of the Allianz insurance products listed above
• Bought the insurance between June 1, 2006 and September 27, 2021
• Purchased the insurance through a dealership, typically bundled with vehicle financing
• Registered your claim with Maurice Blackburn by July 15, 2024 at 4:00 PM (AEST)

To confirm your eligibility, review your car loan and insurance documentation or contact Maurice Blackburn via their official website.

Missed the Deadline? Here’s What It Means

If you didn’t register your claim before the July 15, 2024 deadline:

• You are not eligible to receive a payment from this settlement.
• However, you are still legally bound by the terms of the agreement.
• You cannot pursue your own legal action about the same insurance policies.

So even if you miss out on compensation, you cannot sue Allianz separately over these products.

What Registered Claimants Should Expect Next

If you successfully registered on time, here’s what comes next:

• Court Review: The Supreme Court of Victoria held a hearing on March 11, 2025 to decide whether to approve the proposed settlement. If approved, payments will begin after distribution logistics are finalized.
• No Action Needed Yet: Claimants don’t need to do anything further at this stage unless contact information has changed. Maurice Blackburn will contact you directly about payment steps.
• Update Your Information (If Needed): If your email, phone, or mailing address has changed, update your contact info ASAP by emailing: 📧 [email protected]

How Will Compensation Be Calculated?

There is no flat rate — instead, each person’s payment will vary depending on several factors:

• Total premium paid for the policy
• Date of purchase (earlier policies may have legal limitations reducing compensation)
• Whether you made a claim on the insurance
• Whether you already received a refund or reimbursement

Example payout ranges:

• Someone who paid $300 and never used the policy may receive $150–$250
• A person with multiple policies totaling $2,000 could receive over $1,000

According to official estimates, most payments will fall between $80 and $4,000, with an average close to $585.

Do You Have to Pay Legal Fees?

No. One of the biggest advantages of joining this class action was that no out-of-pocket legal fees are required.

The court approved a “group costs order”, which means:

• Maurice Blackburn receives 25% of the $170 million settlement to cover all legal costs
• You won’t pay anything directly

This ensures fair access to justice while compensating the law firm for risk and work undertaken.

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Example Case: What a Payout Might Look Like

“Alex” bought a used vehicle in 2017 and unknowingly added Extended Warranty and Tyre & Rim Insurance to the financing. The total premium was $950. He didn’t claim anything under the policies and only realized he had purchased them after reviewing his loan agreement.

Because Alex:

• Registered by July 15, 2024
• Didn’t make a claim or get a refund
• Purchased after 2014 (fewer legal limitations)

He may be eligible for $500–$750 in compensation.

Stay Informed: Get Updates on Your Claim

To stay up to date:

• Monitor your email inbox and spam folder for messages from Maurice Blackburn
• Visit AllianzClassAction.com.au for official updates
• Bookmark the Maurice Blackburn case page

Payments may begin in late 2025, depending on court approval and claim processing timelines.

FAQs

Q1: Can I still register now?

No. The deadline for registration was July 15, 2024. Late registrations are not being accepted.

Q2: Can I change my payment method?

Payment instructions will be sent out once the court finalizes the settlement. You can update contact info in the meantime by emailing [email protected].

Q3: Will I pay tax on my compensation?

Compensation from legal settlements is not typically taxable, but consult a tax advisor to confirm based on your individual circumstances.

Q4: What if I forgot whether I registered?

Check your emails from Maurice Blackburn or contact their team directly to verify.

Q5: What if I don’t hear anything by the end of 2025?

Reach out to Maurice Blackburn using the contact info on their official site. Be sure your information is current.