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Obvi Joe

What Should You Consider When Buying Car Replacement Insurance?

Automobile replacement insurance is a unique product. Vehicles depreciate over time, and few drivers can afford to buy a brand new automobile after suffering a write-off. The value of replacement insurance in the event of a total loss is undeniable.

New car replacement insurance isn’t free, however, and there are options about what kind of coverage to purchase. For many automobile owners, the goal is finding the best value for the price.

To help potential customers better understand this topic and avoid paying too much for your coverage, let’s take a look at your options available for car replacement from Obvi.

Annual policy from Obvi

This option allows you the flexibility of obtaining coverage year over year. You purchase one year of coverage at a time, and then at the end of the year you can choose to renew for another year or to let the coverage lapse.

The downside to this option, however, is that if you keep your coverage for 3, 4, 5, 6 or 7 years, the total that you will end up paying will be much higher than if you would have purchased a multiyear policy from the beginning. The upside: if you have a claim in Year 2, you would have paid much less for the policy by going year-to-year, and you get to pay monthly.

Multiyear policy from Obvi

These are easily the policies that offer the best value. By agreeing to a multiyear policy right at the start, you get a significant discount for the total cost of your premium. If you know right away that you want multiple years of coverage for your vehicle, this option is a no-brainer.

Replacement insurance from your existing auto insurer

More and more insurers are offering a replacement cost rider with your collision and comprehensive coverage. While adding this kind of coverage onto your existing primary insurance seems convenient, it comes at a high cost.

How? Premiums are set very low in the first year, to entice people to buy, but they increase significantly year over year. The cost of your policy for Year 5 will be a lot higher than the cost of your policy for Year 1.

So, why should someone buy a multiyear policy from an independent company instead of their existing insurance? Let’s have a look at what can happen if you don’t:

  1. Coverage is only eligible from existing insurer when vehicle is new, so if you switch insurance providers in Year 3 you could lose the replacement endorsement
  2. The premium charged for Year 3/4/5/6/7 is significantly higher than Year 1 or 2, and you have no way of knowing what it will look like
  3. What if your auto insurer non-renews your auto insurance or you find a better deal? A 3-year old vehicle might not be eligible for replacement when it is no longer new
  4. What if your auto insurance becomes increasingly expensive while you carry collision and replacement with the same carrier?

Visit Obvi’s page for New Car Replacement Insurance to learn more or request a quote.

Frequently Asked Questions About Obvi Warranties

 

How does Obvi handle my claims? How do I make a claim?

In the event of a claim you can take your vehicle to any licensed repair facility in North America, including dealerships, and instruct them to forward the estimate to claims@obvi.ca. Once received, we will review the claim, approve it and pay the shop directly. It’s that easy! Don’t forget: any licensed repair facility is happy to accept payment from Obvi on your behalf!

Will Obvi provide a refund or incentive for not making a claim?

Obvi is proud to have reinvented vehicle warranties at a fair price without one of the most clever marketing tools ever used: the no-claims bonus.  The deck is stacked in favour of any provider making claim to a refund on insurance. It contradicts the fundamental principle of how insurance works — losses of the few paid by the many. If everyone received a refund for not filing a claim that would mean those who did make a claim would have paid more in premium than claims would ever hit. Read our blog here for a complete breakdown.

Where can I see what is covered? What do Obvi warranties cover?

The Obvi program offers full comprehensive coverage that is subject only to exclusions — this is how the original manufacturer’s warranty is usually issued. With Obvi you receive a full comprehensive policy with an easy-to-understand list of excluded components. Beyond that, you are covered for any failure that isn’t explicitly excluded, making this the broadest form of coverage you can buy. You can check out our warranty web page for more details about our program, including a simple PDF of some of the exclusions.

Is my Obvi warranty insured? How does that protect me?

Yes! All of our policies are insurance policies that are backed by a licensed and financially stable insurance company. When purchasing a warranty with a multi-year lifespan, the financial stability and ability to pay claims throughout the life of the policy is of utmost importance. With an “A”-rated Obvi warranty in hand, you can rest assured that your claims will be covered throughout the full term of the policy.

Does Obvi have a deductible?

Our warranty policies may have a deductible of $100 for any one warranty claim. Please refer to the terms and conditions in our policies for more information.

Why are cancellation and transfer options so important?

People’s needs change, and Obvi recognizes that. Any of the manufacturer-backed extended warranties are not insurance policies and are typically fully earned after 15-60 days. This is one of the biggest disadvantages of buying a manufacturer’s extension.

Why are Obvi warranties so much less than other options?

Obvi has streamlined the entire automobile warranty experience to make it easy and affordable. We sell our policies exclusively online, without any dealer markup or fees.  This allows us to offer our best price and coverage upfront.

When do Obvi policies expire?

We offer multi-year and kilometer options so it’s best to get a quote or speak with an agent to find out what will work for you. Most manufacturer warranties are for 3 years.

When is the best time to buy? Can I finance my warranty?

The best price possible is always when the vehicle is new, and you will pay more when the vehicle is off warranty. We provide you with options about how to pay, including financing for up to 3 years. Please connect with an Obvi agent to learn more.

What Obvi Learned In 2019

2019 is nearly over, and with the end of the year (and the decade!) fast approaching now is a good time to think about the year that was and to take stock of what was learned.

For Obvi, 2019 was our second full calendar year in business, and we’re thrilled with how much our company grew and evolved over the past 12 months. We’re offering something new and exciting to the Western Canadian automobile insurance industry, and the positive response we see from our customers is incredible. Obvi was created to give drivers a fair alternative to the overpriced and underwhelming extended warranty policies offered by dealerships, so it fills us with joy to see how much money people are saving.

In order to be a successful company we need to be alert and aware about both the automobile industry and the insurance industry. We also want to pass our knowledge on to our customers. As such, here is a rundown of some of the most important things that we learned in 2019.

Popularity of New Car Replacement Insurance

Obvi added one new policy in 2019: New Car Replacement Insurance. We knew that the policy would be a popular addition, but we were surprised at just how popular. With the soaring cost of vehicles and drivers learning more about the costly effects of depreciation, we expect the demand for this kind of policy to keep increasing from here.

Insurance industry is preparing for big changes

Intact Financial Corp., Canada’s largest property and casualty insurer, is expecting a disruption to the industry in the near future. What that disruption might be is still up for speculation, but with rapid advancements in digital technology and the sheer power of huge tech companies such as Amazon and Google, there are a lot of possibilities.

Automakers selling their own insurance — a potential game-changer

A big change could be coming soon to the world of automobile insurance: manufacturers offering their own coverage. Both Porsche and Tesla have already announced plans to do so, and other companies could follow suit.

As reported by Design News in April:

“The combination of autonomous driving and data changes the whole game,” Brian Carlson, director of product line management for connectivity and security at NXP Semiconductors N.V., told Design News. “So we’re starting to see where automotive OEMs will take more responsibility for insurance.”

It’s not yet clear how that would happen. The two could work cooperatively, enabling automakers to sell name-brand insurance along with vehicles. Or automakers could decide to do it themselves, bankrolling and selling insurance in the same way they now provide new-car financing. Either way, experts believe it would be a natural product extension for the industry.

“If they want to get into insurance, they will, and they should,” noted Sam Tawfik, CEO of LMP Motors, an e-commerce platform for buying and renting vehicles. “They already have the installed base of distribution. And if vehicles become autonomous, they can just roll the insurance onto that.”

One thing remains clear: insurers are struggling to keep up with rising claims costs, and with the autonomous driving this will only get worse. The biggest challenge insurers — new and old — will face is that not all vehicles will be autonomous, and the claims costs from old vehicles hitting new will be staggering.

Insurance rate increases will squeeze Albertans

Knowing that Albertans were feeling the pinch from tough economic times, the previous NDP government instituted a five per cent cap on car insurance rates in 2017. But the new UCP government, elected in April, decided to let that cap expire, leading to insurance companies increasing their rates.

The effect on Alberta car owners? A jump in what they pay for insurance, potentially as high as 20 to 30 per cent. Visit our friends at Surex to compare auto insurance.

Drivers keeping their vehicles longer

The numbers are in: drivers are keeping their vehicles for longer, with average length of time that drivers keep a new vehicle being around 6 years.

One of the biggest reasons why is that vehicles are simply made better than they were before, making it take longer for one to become a “Beater.” Another reason is an increase in the popularity of financing. If you’re financing a vehicle for as many as 84 or 96 months, it only makes sense that you’ll hold on to the vehicle as opposed to trading it in.

Looking forward into 2020

It’s impossible to fully predict what the future will have in store, but there are a few trends that we predict will happen.

The biggest one: new technology is going to lead to new problems.

The more technologically advanced vehicles become, the more specialized knowledge is required to fix them. This is especially true for electronic components such as sensors, back-up cameras and entertainment displays.

With so many different things that can go wrong with vehicles, it’s now more important than ever to make sure that you’re protected from expensive repair bills. With an Obvi extended warranty you can get up to 8 years and 160,000 kilometres of comprehensive coverage, including complex electrical components. Visit our website to get a free instant quote or chat with a live agent, or schedule a phone call at a time that works for you.

How Does Obvi’s Claim Process Work?

Going through problems with your vehicle can be a stressful experience — the loss of use of your vehicle, the disruption of your plans and schedule, the new errands required to get the vehicle back on the road, etc.

Obvi knows that the last thing you want in that kind of situation is more stress, which is why we try to keep our claims process as simple and straightforward as possible for clients who have a policy with us.

Here is a quick explainer of how our claims process works for our different policies:

Extended Warranty claims

  1. Contact us and let us know there is something wrong while you go to any licensed repair facility in Canada or the U.S. for a repair estimate.
  2. Have the shop contact us regarding the estimate to repair. We will need a copy of the estimate emailed to claims@obvi.ca. Most claims only take a few moments to approve.
  3. Once approved, the shop can proceed with the repair. We will then pay the repair bill directly via credit card. You’re on your way!

New Car Replacement claims

  1. If something has happened to your vehicle and it has been written off by your auto insurer, contact us.
  2. We will request your claim information for processing.
  3. Once approved, payments will be settled promptly.

 

Obvi’s Top 5 Road Trips in Western Canada

obviroadtripObvi’s Top 5 Road Trips in Western Canada

As a Calgary based company, we love getting out of the city on road trips! When we’re not working hard you can often find our team in the mountains biking, hiking, or relaxing at one of the hot springs. Looking for some inspiration for your next road trip? Here are Obvi’s Top 5 Road Trips in Western Canada.

Icefields Parkway

The Icefields Parkway is considered one of the best drives in the world and connects Banff to Jasper. There are plenty of places to stop off on the way from lakes to glaciers and waterfalls. Our favorite things to see are turquoise Peyto Lake (you can get the best view from Bow Summit) and the glaciers at Columbia Icefields.

peyto lake

Peyto Lake

Sea to Sky Highway

Connecting Vancouver to Whistler, the Sea to Sky Highway is spectacular. Driving straight through takes about 1.5 – 2 hours, but there are plenty of awesome things to see and do on the way. One of the coolest things is the gondola connecting Whistler and Blackcomb Mountains. The route is 4.4km long and over 400m above the ground, and although it’s not guaranteed there are often sightings of numerous bears below you.

Vancouver Island

A trip to Vancouver wouldn’t be complete if you didn’t go to Vancouver Island, and a road trip is a brilliant way to explore and see what the island has to offer. For the most epic trip, spend a week or so on the island and follow the Heritage Discovery Circle Route on the East Coast from Victoria to Port Hardy. Explore everything in-between and with plenty of opportunities to enjoy nature and see wildlife, you’ll have a great time.

Trans-Canada Highway

The Trans-Canada Highway is a ridiculously long road running all the way across Canada, but our favorite part is between Lake Louise and Banff.  Coming from Calgary, we like to start in Banff and make our way slowly to Lake Louise, stopping off on the way to enjoy the scenery.

Once there, you can do a hike from Lake Louise to Lake Agnes Tea House (open from June to October) and enjoy the breath-taking view. Return back along the Trans-Canada highway and spend some time in Banff – maybe even head up Sulphur Mountain if you’re feeling adventurous or if you’re looking to chill, take a dip in the hot springs.

lake louise

Lake Louise

Drumheller and the Badlands

Drumheller is famous for the Royal Tyrell Museum of Paleontology, about 135km away from Calgary. The area around Drumheller, Dinosaur Provincial Park (a UNESCO World Heritage Site) is the richest place in the world in terms of dinosaur fossils, and this museum has a humongous collection. In fact, most of the 130,000+ fossils aren’t even on display and are behind the scenes, meaning that paleontologists from all over the world come to Drumheller to see specific fossils.

But another great thing about Drumheller is the Badlands; this spectacular area where the dinosaurs used to roam is an awesome destination when on a road trip. The hoodoos (a certain geological structure) seem unreal, and it’s an amazing place to explore and take photos.

Did we miss your favorite road trip spot? Send us a note and let us know where yours is!

Love going on road trips but worried about costs associated with your vehicle? Obvi has brought Extended Auto Warranty and GAP Insurance online in Western Canada, saving up to 70% compared to buying from the dealership and giving you better coverage. Get a quick online quote now.

What we learned in 2018

What we learned in 2018

As 2018 has ended, Obvi enters 2019 with an exciting milestone – we now help Canadians save over $1,000,000 each month by going online for Extended Auto Warranty.  As we prepared last year to launch a game changing platform to deliver comprehensive coverage at a fair price, we knew it wouldn’t be easy given some of the stigma facing the industry from decades of poor contracts and sales practices. Whilst looking forward in 2019, we also wanted to share the most talked about changes we implemented in 2018:

Value of KMs.  So many Extended Warranties have short term options, but this fails to recognize that you are investing in the future of your vehicle. With coverage for up to 8 years and a transfer clause, Obvi recognizes the investment made in your vehicle. Even if you expect to sell or trade your vehicle after 5 years, an 8 year policy drastically increases the value of your vehicle.  Without the KMs, the value of a warranty diminishes greatly.

The actual role of an auto dealer.  The role of the dealer is to sell another insurance providers’ Extended Warranty and other Insurance products, which are probably the only insurance products today that allow for a point of sale commission of 2 or 3 times the actual premium – it only makes sense to cut out the middleman to deliver customers fair pricing.

Realtime advice that counts. It is important for the team at Obvi that we can communicate instantly through our instant chat system to answer questions and service our customers. What separates Obvi’s advice is that you are speaking with licensed insurance advisors from the same office that will see you through a claim.  This service model creates a culture that not only celebrates new customers but those same customers who are satisfied with a claim.

Reviews. The reality is that insurance, or any financial product for that matter, isn’t something customers like to review or blog about.  Launching a new brand with a product that might not be called on for many years makes it even more interesting.  Our mission is simple – create a trusted and transparent brand that’s focused on bringing value and a better experience to customers. We see it as important to stay engaged and present on social media, Google, and places like the Better Business Bureau to grow trust and allow customers to see how we are doing.

Warranty as an Insurance Policy? Most Canadians don’t associate vehicle warranty as an insurance policy, but it is a requirement in most provinces today. The insurance industry is highly regulated to ensure that customers are treated fairly – especially when it comes to claims.

We live in an online world. Everything we do has an online option so why doesn’t this come to mind with insurance?  The Insurance industry is caught between legacy players fighting to hang on and innovators like Obvi creating real time solutions for Canadians. Major banks in Canada simply embraced and promoted the benefits of technology, where as the Insurance industry hasn’t been so ready to change.

It was recently reported that residents of British Columbia could save $434,000,000 if ICBC could create an online solution – will they innovate and find a way to pass along the savings? We hope so, just as we are doing with our specialty products.

Should I buy extended warranty on my car?

Should I buy extended warranty on my car?

Extended warranty can be great – it gives you peace of mind that if something breaks on your vehicle, you can claim back the money for the repair, which could otherwise be very costly. Obvi is changing the way that extended warranty is brought to the market in Canada, meaning that some of the negative ideas people had about extended warranty no longer exist with Obvi.

We want to bust the bad points and show why Obvi is the one and only company you should come to for extended warranty in Canada. Should I buy extended warranty on my car? With Obvi, yes you should.

Should I buy extended warranty on my car? Obvi busts the bad points

We are going to break down some of the negative things people say about extended warranty and explain why Obvi is different:

  1. The company could go bust and I lose out. We all know what happened to Sears, and it’s true – a warranty contract from the retailer isn’t always as reliable as it once was. However, Obvi sells an insurance policy and not a warranty contract. What this means is that whatever happens to Obvi, you’re covered by the insurer.
  2. You pay a lot for extended warranty at the dealership – Again, absolutely true. That’s why Obvi is great. Obvi cuts out the middleman meaning no dealer commission and you can go online directly to Obvi, which is why we are priced lower and you save money.
  3. I don’t understand the policy. With lots of companies, you are given a policy full of technical jargon that might leave you confused with hundreds of components covered or not covered. With Obvi, the policy is easy to read and understand and put in simple terms.
  4. What if my needs change? Obvi has created the only extended warranty in Canada that can transfer through a dealer trade.  What this means is that even if you don’t use the warranty, you can get a better sale or trade value with an Obvi warranty being transferred to the next owner. If something happens and your vehicle is a write off, then there are cancelation and refund options.

Who is extended warranty for?
Obvi extended auto warranty for your car, truck, or SUV can take your comprehensive coverage up to 8 years with personalized KM options. Eligible vehicles in British Columbia, Alberta, Saskatchewan, or Manitoba must have 30 days or 1,000 km of remaining manufacturer’s auto warranty. So, if you fall within these limitations, then extended warranty is definitely an option for you.

Should I buy extended warranty on my car?
Vehicles are becoming more and more complicated and it doesn’t take long to realize a return with a properly priced extended warranty. You’ll have peace of mind so no need to worry. With Obvi, you won’t pay the dealership commission meaning you will again save money, and because you are buying an insurance policy, you know we will be around when you need us. Even if you don’t use the warranty while you own the car, you can still realize a return from higher resale value on the vehicle! Find out more and get a free quote now.

Obvi Insurance Myth Busting: The Top 6 Problems Of Traditional Car Warranties

For Immediate Release

Calgary, Alberta, May 21, 2018 – There are significant problems with the perception of the extended warranty business. Obvi Inc. is rebuilding this reputation and is tackling some of the biggest problems facing consumers head on.

“There are so many problems – from cost to complexity. The Obvi team is passionate about four things: simplicity, transparency, value, and efficiency,” explains Joe McBurney, Obvi President. “We want to make things simple for our customers to understand. Breaking down the most common problems with traditional extended warranties for automobiles is an important place to start.”

1 – Warranties that cost far more than the repairs themselves. “The math is simple: $3,000, $4,000, or $5,000 warranties just don’t make sense. Your transferring the risk without benefit of the losses of the few paid by the many at this price point” said McBurney.

2 – Terms of coverage often expire before a failure will occur. Most major mechanical breakdowns occur between 120,000 – 160,000 kilometers, a fair policy must cover this time period – many warranty providers offer options that expire too soon thus eliminating any value for the customer.

3 – McBurney noted most policies are not transferable at a dealer trade. Extending the warranty of your vehicle is an investment in future repairs. This should not merely void itself at a dealer trade; which is the most common method for Canadians to offload a vehicle.

4 – Poor coverage has been part of warranty sales games for years. “As a seasoned insurance professional, it is shocking that second, third, and fourth tier sub-par coverage is still an option,” says McBurney. “Warranties should be easy to understand with coverage and a term that offers the policy holder value.”

5 – “Most of the time overpriced warranties are rolled into finance plans. This tactic not only increases the amount of interest paid by the customer, but it instantly creates a loan to equity imbalance,” explains McBurney. Customers are committing to a bi-weekly or monthly incremental increase to their payments and are often unware of the total cost which can be many thousands of dollars, it adds up fast.

6 – Consumers are not dealing with experts. “You wouldn’t buy house insurance from a realtor or life insurance from a doctor. Obvi provides an unbiased approach to warranties that’s not influenced by the sale of the vehicle. Consumers should be dealing directly with the company who will issue the policy and oversee the claim. “Sales and claims handling from different sources can create confusion and frustration,” McBurney said.

“We believe that the solution is obvious: Deal directly with the insurance provider and claims resource, have a quick and simple no stress purchase experience, and get a quality product with pricing that makes sense for the customer.  Insurtech has opened the door for significant changes throughout the entire insurance industry” McBurney comments. “We are passionate about providing reliable insurance options to help consumers feel confident and well represented in this space”.

Transfer and Cancellation Clauses: What you need to know

extended car warranty transfer

The importance of a transfer and cancellation clause

 

A purchase of a mechanical breakdown insurance policy is an investment in the future of your vehicle. Your needs and situation are always changing which is why the transfer clause is such an important feature of any warranty product when you go to sell your vehicle.

So what are your options?

Transfers

  • No transfer clause- Some warranties are sold at the time of purchase for up to 7 years and if you end up selling the vehicle before coverage kicks in the warranty purchase will vanish.
  • Private sale transfer- This is the most common clause. If you sell the vehicle privately it can be transferred. The biggest flag here is that vehicles are not often sold privately in today’s world. This clause specifically excludes dealer trades.
  • Transfer at any sale- In this case you have the ability to negotiate a better sale or trade value recognizing the additional investment in the mechanical performance of your vehicle.

Cancellations have even less wiggle room due to complicated regulations (or lack-of):

  • Warranty Contract- Manufacturer’s extended warranty is often done through a contract. Most of these contracts include a stipulation that it becomes non-refundable after 30 or 60 days. Since these are not regulated insurance policies there is no requirement to have cancellation clauses. Your hands are tied.
  • Insurance Policy- Third party warranty providers sell mechanical breakdown insurance that is subject to a cancellation provision during the policy term. You have options here.

With mechanical breakdown insurance policies Obvi has redefined the standard in automotive warranty while protecting your investment. We are vehicle owners too and we’ve been in the same situations you have. Get an instant quote on our website today and you’ll discover the cost savings, but also the transparent and fair policy we provide.

How Obvi Inc. changed extended warranties for good!

For years, Consumer report bulletins have outlined the inherent conflict, the significant profit centre, and product challenges associated with extended warranties. But the biggest hurdle to change has been technologies long overdue entrance into the insurance market. Insurtech, the label for technology innovation that is changing the insurance industry, realized over two billion dollars of investment in 2017 and has opened the door for innovators like Obvi to radically change the warranty market and reach customers across Western Canada overnight. The Obvi team has implemented leading technology that offers instant online quote and purchase and partnered with an A rated established insurance company to solidify their innovative business platform with leading coverage.

The high-level historical evolution of insurance looks like this:

  • Basic fire policy, coverage for basically one type of peril
  • Multi-peril policies, Fire, windstorm, hail, lightning etc…
  • Broad form all risk insurance, meaning no specific perils only a list of exclusions.

An all-risk policy covers everything except what is specifically excluded in the policy. While most consumers are trained to ask “what is covered”, Obvi has taken the approach of- It’s simple, here is what we don’t cover!

In the event of named component policy claim (which is what many warranty providers use), the burden rests with the client to show that the component that failed was included in the policy and this allows the warranty provider to find additional avenues to decline elements or parts of the loss. Here is an example from a consumer report:

Client has claim denied for the running board motor that failed on the basis that while running boards are listed as covered, there is no coverage for running board motors.

With an exclusion-only policy the warranty provider would have to show that the policy clearly excluded the component in question otherwise it is covered – its that simple! With personalized KM options, instant quote and buy, leading coverage, and pricing that makes sense it is safe to say that yes – automotive warranty has changed for the good!  Find out more and get a free quote now.