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March 2020

Are Extended Car Warranties Insurance?

When you buy an extended warranty product, how do you know that you’re making a secure purchase?

It’s a fair question, and one that many drivers ask for a reason. For decades Canadians had no choice, and there were companies that sold extended automobile warranties that weren’t always honest or reputable, and these companies gave the entire industry a bad reputation. Furthermore, honest companies like Sears defaulted and their warranty program went down with them, increasing the frustration faced by Canadians.

Luckily, however, many Canadian drivers can now buy safely because of one big change: extended warranties as insurance products.

Why are insurance products more secure?

Simply put, the world of insurance is guided by strict regulations and monitored for financial stability.

In order to run an insurance business, companies need to follow both federal and provincial guidelines about what they are and aren’t allowed to do. These restrictions are primarily  in place to protect consumers from unscrupulous companies.

What should consumers look for?

An A-rated insurer is the safest bet for Canadians because they have proven track records.

How do extended warranties as insurance work?

All insurance works by covering the consumer for events that shouldn’t occur.

Extended warranties as insurance work in a similar way: by covering your vehicle for problems that aren’t supposed to occur.

These policies are as good as the warranties offered by vehicle manufacturers, if not better. And with the financial security of insurance companies, these policies are welcomed by all shops because they know the insurer will be able to pay for the repairs.

What does an Obvi extended warranty cover?

Obvi models our warranties off of the comprehensive coverage offered directly from vehicle manufacturers. We outline a small list of exclusions, and if something isn’t explicitly excluded, it’s covered! This allows us to provide the most broad coverage as possible. This is important, because not only does it protect customers against problems that are rare or unexpected, it also helps us cover all the new and exciting electronic features that are constantly being added to vehicles.

Visit Obvi’s website to learn more, or get an instant quote for free within minutes.