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.
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.