Monthly Archives

November 2018

Extended Warranty Refunds — Are They Too Good To Be True?

In most Canadian provinces, extended warranty is now considered an insurance policy.  How many insurance policies in Canada provide a full refund if not used?

The answer is none — not home insurance, not auto insurance, not life insurance, not business insurance. Why is this the case? If everyone who didn’t make a claim got a refund, the insurance industry would go bankrupt. As is often said of insurance, “the losses of the few are shared among the many.”

Some extended warranty providers advertise a money-back refund. However, the chances of getting this back are extremely slim. Here’s why:

  • If you have any claim, no matter how small, it will cancel the ability to get a refund.
  • Extended warranties expire 5, 6 or 7 years down the road, and you have to remember to call to get your refund within 30 days or less of the expiration. Even for the most organized people, remembering this deadline is quite a stretch.
  • There will be a list of conditions that have to be upheld in order to get the refund, and typically only a very short window of time to do this.
  • Read the fine print very carefully — if it was intended to be refunded they would voluntarily send you a cheque!

Having the ability to offer a refund contradicts the concept of insurance. So, why it is even possible?

  • It’s a reason to over-inflate the prices of extended warranty, which the dealers have already overpriced, and the lure of a refund increases sales of extended warranty.
  • It prevents you from putting through claims because you don’t want to lose your refund. They bank on you not meeting all of the requirements for the refund, including forgetting when you have to get refunded. This means that you didn’t put your claim through and you didn’t get your refund, whereas they are winning big-time.

In summary, yes, you can get a refund. Is it likely that you will get it? Not really.

What you should be focusing on instead is paying a fair price without excessive dealer markup, while still getting good coverage and the freedom to cancel or transfer at any form of sale.

Obvi has all of this. Find out more about Obvi’s extended warranty and get a free quote.

Should I buy extended warranty on my car?

Should I buy extended warranty on my car?

Extended warranty can be great – it gives you peace of mind that if something breaks on your vehicle, you can claim back the money for the repair, which could otherwise be very costly. Obvi is changing the way that extended warranty is brought to the market in Canada, meaning that some of the negative ideas people had about extended warranty no longer exist with Obvi.

We want to bust the bad points and show why Obvi is the one and only company you should come to for extended warranty in Canada. Should I buy extended warranty on my car? With Obvi, yes you should.

Should I buy extended warranty on my car? Obvi busts the bad points

We are going to break down some of the negative things people say about extended warranty and explain why Obvi is different:

  1. The company could go bust and I lose out. We all know what happened to Sears, and it’s true – a warranty contract from the retailer isn’t always as reliable as it once was. However, Obvi sells an insurance policy and not a warranty contract. What this means is that whatever happens to Obvi, you’re covered by the insurer.
  2. You pay a lot for extended warranty at the dealership – Again, absolutely true. That’s why Obvi is great. Obvi cuts out the middleman meaning no dealer commission and you can go online directly to Obvi, which is why we are priced lower and you save money.
  3. I don’t understand the policy. With lots of companies, you are given a policy full of technical jargon that might leave you confused with hundreds of components covered or not covered. With Obvi, the policy is easy to read and understand and put in simple terms.
  4. What if my needs change? Obvi has created the only extended warranty in Canada that can transfer through a dealer trade.  What this means is that even if you don’t use the warranty, you can get a better sale or trade value with an Obvi warranty being transferred to the next owner. If something happens and your vehicle is a write off, then there are cancelation and refund options.

Who is extended warranty for?
Obvi extended auto warranty for your car, truck, or SUV can take your comprehensive coverage up to 8 years with personalized KM options. Eligible vehicles in British Columbia, Alberta, Saskatchewan, or Manitoba must have 30 days or 1,000 km of remaining manufacturer’s auto warranty. So, if you fall within these limitations, then extended warranty is definitely an option for you.

Should I buy extended warranty on my car?
Vehicles are becoming more and more complicated and it doesn’t take long to realize a return with a properly priced extended warranty. You’ll have peace of mind so no need to worry. With Obvi, you won’t pay the dealership commission meaning you will again save money, and because you are buying an insurance policy, you know we will be around when you need us. Even if you don’t use the warranty while you own the car, you can still realize a return from higher resale value on the vehicle! Find out more and get a free quote now.

What’s GAP Insurance?

What’s GAP Insurance?

Although some people will have heard of GAP Insurance, others won’t have, and will have found some of the explanations on the Internet a bit confusing and not very helpful. I’ve created an article with everything you need to know about what GAP Insurance is.

GAP Insurance definition: Guaranteed Auto (or Asset) Protection is a type of car insurance which protects your finances when a loan is taken out to pay for your car.

What’s GAP Insurance: Let’s break it down

That’s the definition, but what does it actually mean? Imagine that you were involved in an accident and you totaled your car. Your insurance company determines that the car is worth $13,000. This is less than you imagined but you bought the car new so it depreciated in value over time. You still owe $17,000 because you took out a long term loan over 7 years, meaning
$17,000          – $13,000 = $4,000

What you owe – car worth = Amount you still owe
GAP Insurance protects you and will cover this $4,000 – this is the “GAP”. Obvi protects you when you take out a loan to finance your car with GAP Insurance.

Why do I need it?

Long term loans are becoming more popular in Canada. According to CBC News, at one point earlier this year, 55 % of all new car loans were for at least 84 months (7 years).
Unfortunately, people forget that having a loan over a long number of years does come with risks. Here are some useful points that we often go over when we explain what’s GAP Insurance.

  • “I’m a sensible driver, I’m not going to crash my car…” Hopefully you won’t ever be in an accident, but what if it is stolen? Or there is a fire? Not everything is always in our control, so if you have a long term loan, you want to have reassurance that you will be financially covered in case something happens.
  • The worst case; you don’t want to be left with a loan and no car- this can happen, and that’s why you need protection.

GAP Insurance is for when you buy a car and you have a loan to finance your purchase. It covers the GAP between the value of the car and the amount you owe in case something happens such as accident or theft. With Obvi you can purchase GAP Insurance online. Find out more and get a free quote now.

Warranty Contract or Insurance Policy

Extended warranty is something that customers know and love, an important investment in future peace of mind.

But what happens when the company you have purchased from goes bankrupt? And what steps can be taken to ensure you are covered no matter what?

Most extended warranties are long term — anywhere from 3 to 8 years, which in this rapidly changing retail world should have consumers concerned about the financial stability of anyone providing an extended warranty.

With the recent bankruptcy of Sears and the demise of companies such as Future Shop, customers need to be reminded that a warranty contract from the retailer isn’t always as reliable as it once was. The auto industry was saved by government bailouts after the 2008 financial crisis, and with the North American automobile market struggling to find ways to keep new buyers coming through the doors, it only creates more concern for warranty purchases.

Let’s breakdown the two forms of warranty available in the market:

Manufacturer’s Extended Warranty Contract (Service Contract)

Dealers are heavily incentivised to sell the manufacturer’s extension of your vehicle warranty.  There is no standard format, wording or regulatory framework around this method of extended warranty. Most importantly, there is no monitoring of the financial stability or ability to pay the claims.

Insurance Policies

Consumers have the option of purchasing an insurance policy to extend the warranty of their vehicle. Many dealers sell third-party insurance policies.

What they don’t tell you in the finance office, however, is that these policies are often excessively marked up because of sales commission. They also don’t tell you that alternative sources exist.

But with the help of Obvi, purchasing insurance protection can be done without paying dealership commission, which is how you save money. Our policies are often thousands of dollars more affordable than what you see at a dealership.

Obvi gives you a plain and simple insurance policy that is easy to understand. Our motto: if it’s not excluded, it’s included! With very few excluded components, this allows us to provide the broadest form of coverage possible.

Obvi is also with you every step of the way, including the claims process. And unlike other policies where you are locked in after 30 days, you do have the freedom to cancel if you so choose.

If you’re looking to save money by not paying the middle-man, and want to know that you’ll be taken care of in the event of a claim, Obvi is the perfect solution. Get a quote today.