Monthly Archives

November 2018

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 7 years or 175,000 km, whichever comes first. 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.

Summary:
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

Warranty Contract or Insurance Policy

Warranty Contract or Insurance Policy

Extended Warranty is something that customers know and love, a one-time 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, 3,4,5,6 or 7-year extended warranties 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 others like 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 gov’t bail outs after the 2008 Financial Crisis and with the North American automobile market is struggling to find ways to keep new buyers coming through the doors, it only creates more concern for warranty purchases.

Lets 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 – Extended Warranty

Consumers have the option of purchasing an insurance policy to extend the warranty of their vehicle. In fact, many dealers are selling third party insurance policies with excessive markup while the customer isn’t aware they can look online.

With the help of Obvi Inc. this can be done without paying dealership commission, which is how you save money. When you receive advice from Obvi, it’s good to remember that this is the same company that would handle your claim.

Obvi sells insurance policies, and unlike some where you are locked in after 30 days, if an event happens such as your car is stolen, you do have the option to cancel. Obvi gives you a plain and simple insurance policy that is easy to understand without technical jargon and is built to pay claims.  Our motto – if it’s not excluded, it’s included! With very few excluded components, this is great for customers given the significant savings and long-term financial stability.

If you’re looking to save money and not pay the middle-man, and want to know that you will be paid in the event of a claim, Obvi Inc is the perfect solution. Get a quote today.