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Obvi Joe

News Release: Obvi Insurance Myth Busting: The Top 6 Problems With 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 a standardized 7 year/175,000 KM warranty term, 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.

News Release: Calgary entrepreneur tackling biggest problems around warranties

Obvi Inc.’s simple online platform is solving problems facing consumers           

For Immediate Release

Calgary, Alberta, May 16, 2018 – While many in the consumer world are leery about insurance and warranties, Obvi Inc. has launched a simple and innovative online platform that has set out to tackle some of the biggest problems facing consumers. Obvi is bringing the Canadian insurance industry on par with other countries.

“Our intuitive online platform provides our customers with a cost-effective extended auto warranty both easy to understand, and clearly written,” said Joe McBurney, Obvi President.

The world of insurance is more than just personal home and auto coverage, and there are several specialty products well suited to online direct sales. A technological revolution in the insurance industry more commonly known as “insurtech” has made its way to Canadian customers. Insurtech investment for 2017 realized more than $2 billion in funding, bringing the six-year total to more than $8 billion world-wide. As a result, the Canadian marketplace is positioned for rapid transformation in all aspects of the insurance industry.

“As the market is evolving, and more complex policies are starting to be offered directly online, insurtech is rapidly changing the extended warranty business with a big, long overdue, win for consumers,” said McBurney.

Before Obvi, warranties used to cost more than the repairs themselves. Most policies aren’t transferable at a dealer trade. Rolling an overpriced warranty into a customer’s finance plan increases the amount of interest customers pay and creates a loan to equity imbalance.

Obvi’s standard policy is a 7-year/175,000 km term for all vehicles, including Canada and U.S.-wide repair coverage, also allowing coverage to be transferred between owners upon resale or trade, either through private sales or through dealerships.

In North America, insurance and warranty products have not really made the leap to the online world. Internet-based insurance purchasing has been available in the UK for more than 10 years, and now more than 80 per cent of the UK personal insurance market is sold or generated online.

“You wouldn’t buy home insurance from your realtor – or health insurance from you doctor. We are giving Canadians a fast, easy, trustworthy way to purchase their extended auto warranties right from the source who also handles the claim,” says McBurney.

For more information about Obvi visit: obvi.ca.

Warranties re-imagined…what does that mean?

When it comes to rebuilding the reputation of the extended warranty business, the leadership team at Obvi set out to tackle some of the biggest problems facing consumers.

  1. Before Obvi, warranties used to cost more than the repairs themselves. The math is simple, $3,000, $4,000, or $5,000 warranties just don’t make sense.
  2. Terms of coverage that expire before the failure occurs. Statistically, the majority of mechanical breakdowns occur between 120,000 – 160,000 kilometers, the policy should cover this.
  3. Most policies aren’t transferable at a dealer trade. Extending the warranty of your vehicle is an investment in the future repairs of your vehicle and this shouldn’t merely void itself at a dealer trade, the most common method for Canadians to dispose of a vehicle.
  4. Poor coverage! To a seasoned insurance professional, it is shocking that second, third and fourth tier sub-par coverage is still an option. You wouldn’t consider bronze level house insurance!
  5. My policy only pays $400 more than I paid for it. That’s right, some providers offer a $2,500 warranty with a per claim limit of $2,900.
  6. Rolling an overpriced warranty into your finance plan not only increases the amount of interest you are paying, but instantly creates a loan to equity imbalance.
  7. You wouldn’t buy house insurance from a realtor would you? Dealing directly with the company who will issue the policy and oversee the claim is critical.

The solution was obvious 😉 – one leading policy that makes sense for customers. Instant quote and buy available at Obvi.ca and we will be around when you need to make a claim!

News Release: Calgary Entrepreneur sets out to change automotive warranties in Canada

Calgary Entrepreneur sets out to change automotive warranties in Canada

For Immediate Release

Calgary, Alberta, May 7, 2018 – Calgary entrepreneur, Joe McBurney, walked away from a successful career to change perceptions around automotive warranties. Joe McBurney has launched Obvi Inc., which provides simple, clearly written and easy to understand extended automotive warranty and gap insurance that can be purchased directly online for a fraction of the price available through other providers.

“The extended automotive warranty industry has been stagnant for many years and consumers have become leery about these products,” explained Obvi President, Joe McBurney. “We saw a gap in the market and an opportunity to innovate. Our online platform provides a very cost effective extended auto warranty option that is clearly written and easy to understand.”

The Obvi policy is a standard 7-year/175,000 km term for all vehicles and it includes Canada and U.S. wide repair coverage, car rental and travel expense reimbursement. The policy also allows coverage to be transferred between owners upon resale or trade either through private sales or through automotive dealerships. Obvi was able to provide significant cost savings by cutting sales commissions, dealer fees and offering the product directly from the underwriter to the consumer.

“Both from a price and product perspective, the feedback we’ve received is ‘this is too good to be true,’” McBurney said. “The reality is that a lack of competition and innovation in this space has resulted in people overpaying for these products for far too long. I saw how technology was improving so many different aspects of the insurance industry around the globe and thought that someone should step up and do something in the warranty and GAP market, so I did.”

The retail world has changed rapidly over the past 10 years, and now, almost anything from A to Z can be purchased online. It is Obvi’s goal to leverage this reality with a simple online platform and a policy that clearly lists what is not covered – simply put – if it is not explicitly excluded, it is covered.

“It’s about trust. People are leery of insurance and warranties. We want to create trust with our customers. We are with you every step of the way,” McBurney said, adding, “we sell you the product, and you deal with us directly for claims.”

For more information about Obvi Insurance visit: obvi.ca.

 

Retail has changed; Insurtech is here

The retail world has changed rapidly over the past 10 years, and now, with the help of Amazon and others, almost anything from A to Z can be purchased online.

Beyond just physical products, this includes intangible goods like airfare, financial investments, software and even mortgages. any other items. Curiously, at least in North America, insurance and warranty products have not really made the leap to the online world.

The world of insurance is more than just personal home and auto coverage though, and there are a number of specialty products well suited to online direct sales.
One of the most promising products is automobile warranty and gap coverage, both of which are normally sold in conjunction with each other at a vehicle dealership when a consumer buys a new (or at least new-to-them) vehicle.

Dealers are renowned for drastically marking up these products (often to 3-4x the actual premium amount), and such consumers are finding very poor value in the traditional sales channels.
By cutting out the middleman and offering auto warranty and gap coverage online, consumers can connect more directly to the insurance company backing it, and save thousands of dollars in the process. This is a big win for all involved.

Obvi is facilitating the win for consumers. We provided a no-obligation quote for your vehicle in less than one minute – online. Although many will welcome the technology revolution in the insurance industry (or “insurtech” as it’s often known), it is surprising that Canadian consumers have had to wait this long.

Internet-based insurance purchasing has been available in the UK for almost 20 years, and Internet-originated purchases now make up over 80% of the UK personal insurance market.
Insurtech investment for 2017 realized more than $2 billion in funding, bringing the six-year total to more than $8 billion world-wide! As a result, the Canadian marketplace is positioned for rapid transformation in all aspects of the insurance industry.

As the market is evolving, and more complex policies are starting to be offered directly online, insurtech is rapidly changing the extended warranty business with a big, long overdue, win for consumers!

Why Obvi?

It is one of life’s most satisfying moments – basking in the anticipation of the near final moment of closing a deal on the perfect new vehicle. Your mind begins to drift to thoughts of Sunday drives, road trip adventures with friends, commuting with your favourite songs playing as your battle cry before you get to work, and transporting your loved ones, your most precious cargo.

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