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.