You just bought a new car from a dealership — congratulations! The whole process can be draining and take a long time, especially when you have to sit through sales pitches for add-on products.
Did you end up purchasing an insurance product, such as GAP (guaranteed asset protection) insurance, at a price you later realized is more expensive than it should be? No worries — in some cases you still have the option to cancel.
If you have purchased a third-party GAP insurance policy, you should be able to cancel it at any time at a pro-rata rate. What exactly does this mean? It means you get a refund for the unused portion of the policy — so when it comes to cancelling, the sooner the better.
Why GAP insurance with Obvi is different
For more information about GAP insurance, read our explainer blog here.
GAP insurance is an important insurance policy, but you shouldn’t be paying thousands for it. Obvi is the only fully online solution in Western Canada, meaning that we cut out the middle-man and pass those savings along to our customers. By being online, it also means that you don’t have timely sales pressure, and can purchase when you have conducted as much research as necessary and are ready to take the next step.
Why would I want GAP insurance?
CBC News reported that, in 2018, 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 points to think about:
- “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 gets stolen? Or there is a fire? Or someone crashes their car into you? Life isn’t always in our control, so if you have a long-term loan, you want to have reassurance that you will be financially covered just in case something happens.
- The worst case scenario: you don’t want to be left with a large loan and no car. This can happen, and that’s why you need protection.
We sometimes forget the financial risks that are associated with our vehicles, and we also often forget that some events are outside our control, such as theft or accidents. GAP insurance is there to help protect your finances and give you peace of mind.