Monthly Archives

February 2019

Insurance Policy or Vehicle Service Contract?

Insurance Policy or Vehicle Service Contract?

Vehicles today are increasingly complex especially with all the electrical components, and Canadians are looking for more and more solutions to protect their investment. For decades we have all associated the term “bumper to bumper” with new vehicle warranty and while it remains undefined, the term suggests that everything between the bumpers is covered under warranty. In reality, you will be hard pressed to find it in writing from any of the major vehicle brands today or any insurance policy.

Extending the manufacturers’ warranty

Vehicles come with a 3 year 60,000KM or 4 year 80,000KM depending on the manufacturer, with a few 5 year 100,000KM warranties available and are usually referred to as “New Vehicle Warranty” or “New Vehicle Limited Warranty”. When it’s time to extend the warranty, a consumer can decide between an independent insurance policy or vehicle service contracts (VSC) from the manufacturer. Be aware that a VSC is different from the original manufacturers’ warranty, it isn’t an extension of the exact same thing and they can be open to a lot of interpretation. Here are some examples of what you will be looking at:

– OBVI Mechanical Breakdown Insurance Policies
– GM Total Plus (VSC)
– BMW Certified Series (VSC)
– Mercedes Benz Certified Series (VSC)
– Toyota Extended Care Plan (VSC) (available in Silver, Gold and Platinum)
– Acura Plus Plan (VSC)
– Honda Plus Plan (VSC)
– Ford Care (VSC) (which has many different levels of coverage)
– Audi Certified Plus (VSC)
– Other third party providers of VSC and insurance

The list goes on and on. So how do you know which warranty to chose? Let’s face it, the automotive industry is a marketing giant and when it comes to the extended warranty they have great brochures often listing hundreds of components you have never heard of. But the reality is you should be most concerned with what’s NOT covered to make the decision. After all, when you need to make a claim the brochure is out the window and the small-print policy wording is called upon. It’s time for a transparent approach to extended warranty, one which provides great coverage all with easy to understand exclusions.

Does buying an extended warranty from the manufacturer provide “bumper to bumper” coverage? No. Canadians need to read and understand the policies and beyond the coverage should be considering the following when buying an extended warranty:

– Financial stability, usually best served by an insurance policy.
– Can you transfer at a dealer? The most common way to sell your vehicle
– Are you getting warranty advice from the warranty provider?
– Where can the vehicle be repaired?
– Does it include more than 160,000 KM in coverage? How many extra years does it provide?
– Who is assisting you during a claim?

To summarize; Bumper to bumper is another way of wording Extended Auto Warranty. It doesn’t literally mean that EVERYTHING is included, although it sounds like it. Always make sure you know whether you are looking at an insurance policy or a vehicle service contract, that you understand what you are reading and are happy with what is covered.

Find more information on Obvi’s Extended Warranty or get a quick online quote here.

GAP Insurance On Lease

Can you get GAP insurance on lease car?

Guaranteed Auto (or Asset) Protection, GAP insurance, is a type of car insurance which protects your finances when a loan is taken out to pay for your car. Many people think that they cannot get gap insurance on lease cars but this is not true. With Obvi, getting gap insurance on lease cars is definitely an option.

Do you pay more for Gap insurance when the vehicle is on lease?
No! The amount you pay for Gap insurance does not depend on whether the car is on lease or not.

Leasing a car explained

Leasing a car is not the same as financing a car. When you lease a car and your term comes to an end, you either return the car or you can choose to buy the car. Both leasing a car and taking out a long-term loan are popular options in Canada. According to Automotive News Canada, around 25% of new cars are leased.

Why would I need GAP insurance on a lease car?

When leasing a car, you do not actually own the car and therefore you are responsible for returning the car back to the owner once the term is up. If you are in an accident, or the vehicle is stolen, the car insurance company will pay out the same amount as it would cost to buy that used car from a dealer. This is therefore much less than the new price due to depreciation, meaning that it wouldn’t cover the whole amount you would need to pay to end your leasing contract. This is why GAP insurance on lease cars exist, as it covers this shortfall.

Risks of a leased car

Unfortunately, people forget that both leasing a car and taking out a long-term loan over a number of years does come with risks. Here are some useful points that we often go over when we explain what’s GAP Insurance.

  • Accidents happen – 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 lease, 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 paying a lease and no car- this can happen, and that’s why you need protection. If you are in an accident, and the car needs to have repairs, your payments will still continue. If your car is totaled in an accident, you will also continue to make payments until the claim amount is settled.

Yes, you can get GAP insurance on a lease car, and yes the best deal is online with Obvi without paying a huge commission fee. Find out more about GAP insurance or get a quick and easy quote now.

Best Extended Car Warranty Company

Best extended car warranty company

Best extended car warranty company

When buying your extended car warranty, it’s important to make sure you have chosen a trustworthy and reliable company. How do you know what is the best extended car warranty company?

Understand the market

It’s a good idea to do some research and understand what is going on at an industry level when researching a company. For example, when looking for the best extended car warranty company, you need to understand that there are different places selling car warranties with differing motives.

The traditional method of car warranty sale in Canada is through the dealership when purchasing your car. However, this can come with many issues as salesmen are often motivated by making a quick high-pressured sale as they could earn up to 75% commission on extended warranties. They are not the business that will be dealing with you in the event of a claim and generally don’t have expertise in the product they are actually selling. The other option is going with an online company which are becoming more common. Many negative issues can be eliminated going this route. There is low sales pressure, you can deal with the same company when making a claim and cut out the middleman taking that big fee that you used to pay. When researching a new vehicle and warranty and the company providing it, it’s important to see the bigger picture and understand what kind of warranty you are getting and what process you are comfortable dealing with.

Word of mouth

If people you know and trust are telling you that they have had a great experience, this is a good way to get an introduction to a company which you can then find more information about online. Particularly when a company is new, word of mouth is really important because a new company may not have a lot of reviews yet.

Read reviews

Always check for reviews and read as many as you can! It’s important to see what customers are saying about a company, and whether or not they had a good experience. Having a few negative reviews isn’t necessarily a bad thing, after all you don’t know how trustworthy the reviewer is, but check to see if the company responded. An offer to resolve the issue, offer an explanation and apologise is better than ignoring the bad review. However, if there are numerous bad reviews and there is a recurring theme, be aware that you might experience the same issue.

Chat with or call them

Don’t hesitate to get in touch with the company if you have questions. A good extended car warranty company will respond quickly and have helpful customer service agents that are experienced and able to help you. If you don’t find that this is the case, it might be a warning sign!

We think Obvi is the best extended car warranty company

Obvi is completely changing extended car warranties in Western Canada. It’s eliminating all of the pain points that customers experience when buying at the dealer and providing warranties at a fair price by bringing it online. Obvi extended warranties provide a low pressure engaging process where you can take your time to research and readthe easy-to-understand policy.

Find out more info about Extended Warranties here or get a quick & easy quote now.