Monthly Archives

November 2019

Why It’s Important To Have Warranty Coverage On Your Vehicle

When motorists go to buy a new vehicle, they’re often faced with a number of important questions: what’s my budget? What type of vehicle should I buy? What make of vehicle should I buy? What features and options do I want included?

Another factor that should be taken into account more often than it usually is: how much warranty coverage am I getting?

It may come as a surprise that different car manufacturers offer different warranty coverages. For example: Ford and Toyota offer 3 years / 60,000 kilometres, while Kia and Hyundai provide 5 years / 100,000 kilometres.

This matters because there are different perks to having your vehicle covered by warranty — and there’s nothing worse than needing it, only to have discovered that it has already expired.

Here are some important reasons why it’s beneficial to have your vehicle covered by warranty for as long as possible.

Less money to spend on repairs

This is an obvious one.

If a breakdown occurs that is covered by your warranty policy, you won’t need to pay out of pocket to have it fixed. Costly breakdowns can happen to all vehicles, including brand new ones, so the longer you have a warranty for, the longer your breakdown repairs will be covered for.

Warranties add value for trade-ins and private sales

Even if you spend plenty of time researching and deciding what new vehicle to purchase, there’s no guarantee that actually keeping the same vehicle will be the right decision.

Maybe an unexpected financial emergency pops up that requires you to save money somewhere, such as downgrading to a more affordable vehicle. Perhaps you soon realize that you need a vehicle that has more seating or better towing capacity. Or, heck, maybe you discover that you just flat-out don’t enjoy driving the vehicle as much as you thought you would.

If you decide to trade in or privately sell a vehicle, an existing warranty adds a lot of value to it and helps you to negotiate a better price.

Stuck with a short factory warranty? Get it extended

So, you’ve taken your time and done all of your research, but for one reason or another you’ve still decided that the next car, truck or SUV you purchase will be one that comes with a shorter warranty of just 3 years.

Luckily for you, getting the benefits of longer protection is still possible, thanks to an Obvi extended warranty!

Not only do we specialize in selling extended automobile warranties, all we require is that you still have some existing comprehensive factory warranty remaining on your vehicle prior to purchasing with us, and that you’ve followed the manufacturer’s maintenance guidelines up to that point.

Additionally, Obvi’s extended warranties are for up to 8 years from when the vehicle was new, so even if you get 5 years of coverage straight from the manufacturer we can provide you 3 years on top of that, giving you the perks discussed above for longer.

Check out the extended warranty page of our website to learn more and to receive a free instant quote for prices.

Important Information To Know About Extended Warranty Refunds

Like most goods and services, extended warranty policies come with the option of getting refunds.

However, extended warranties — especially automobile extended warranties — are unique entities, and as such, have unique characteristics about when and how refunds are available.

The purpose of this Obvi blog is to help spread some important details that consumers should know and remember about how these work.

First, let’s consider how buying warranty or insurance works. The losses of the few are paid by the many, which explains why no other kind of insurance product in Canada offers a refund — not home insurance, not life insurance, not car insurance.

So, why are many automobile extended warranties eligible for refunds? Truth be told, the deck is stacked in favour of the warranty provider — let’s look at why.

Exclusions and eligibility

As with any and all insurance policies, it’s always important to read the fine print for exclusions and eligibility. The last thing you want is to think you’re still covered, and make decisions based on that assumption, only to later discover that you were wrong.

For example: many vehicle warranty policies have kilometer caps for refund eligibility. Once a kilometer threshold has been crossed, there goes your chance at getting a refund.

Claims erase your right to a refund

This one might seem obvious, but some people still miss it. For most policies, any time you make a claim it waives your chance to collect a refund at a later date. Why? Because if an insurance company has already paid you money for a claim then your premium is considered to have been used up.

Check the timeframe limits

All policies with refund options have a timeframe where the request has to be made. For example, 60 days after the policy has expired. Some companies will offer you something back if you miss this deadline, but not the full refund amount that you would have been entitled to otherwise.

Pro rata cancellation

How much refund you’re entitled to often depends on how much of your policy has lapsed. For example: many insurance policies offer refunds on a “pro rata” basis. The website Insuranceopedia gives a good example of how this works:

“For example, a policyholder purchases a one-year policy for $1,000 but cancels it after six months. In a pro rate cancellation, they would receive a refund of $500, which is equivalent to the remaining six months of coverage they forfeited.”

You might have to commit to the car if you want a refund

According to a recent article by Autotrader, the average length of time a driver keeps a new vehicle is 71.4 months, or roughly six years.

This is important to remember, because many policies require you to  keep your vehicle — and keep it safe — for the full term in order to be eligible for a refund. That means no sales or transfers, nor can the vehicle be written off. These kinds of requirements are red flags, as it suggests the company isn’t actually serious about refunding premiums — they fully expect you to lose your eligibility before the date it can become active.

If you have further questions about how Obvi’s refunds work you can always contact the company to connect with an agent.

What Are OEM Parts, And Why Are They Important?

 

If your vehicle is involved in an accident and needs serious repair work done, one of the last things that you want to worry about is the vehicle decreasing in value.

Now imagine how much harder it would be to trade in or privately sell a vehicle with a replaced door that’s not quite the same colour as the rest of the car, or a replaced spoiler that’s clearly an aftermarket part.

One sad but common practice in the insurance industry is insurance companies forcing repair garages to seek out the cheapest parts available when fixing vehicles after a partial loss. Not only does this include aftermarket parts, it also often means parts pulled from scrap yards.

This problem is one of the many reasons why the demand for OEM parts has become popular among many automobile owners. Short for “Original Equipment Manufacturer,” OEM parts are ones made by directly by the vehicle’s manufacturer.

There are a few different perks to ensuring that your vehicle is repaired using OEM parts.

First, as touched on earlier, OEM parts can also help to protect the investment you made in your car, truck or SUV. If you decide to sell or trade in your vehicle in the future, well-trained eyes can notice whether important parts are OEM or aftermarket, leading to a tougher sale or reduced dollar figures in an offer.

Another perk is that you get the peace of mind of knowing that the parts were originally intended to fit the specifications of your vehicle make and model — in other words, that they’re the exact parts that the manufacturer wanted to be used.

How Obvi can help

Don’t get stuck owning a one-year-old vehicle with parts from a junkyard.

Customers who purchase a New Car Replacement Insurance policy from Obvi have the choice of adding on OEM parts protection to their coverage. This option pays up to $2,500 per year in additional costs to ensure that OEM parts are used in your vehicle. And with coverage for up to five years, you’ll ensure that your vehicle investment is protected for longer.