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Obvi Harriet

Canadian Insurance Market

Canadian Insurance Market

It’s moving online incredibly fast

As we have already seen in Banking and Investing, technological advancements for Insurance are reaping huge rewards for customers. Recent advertising efforts by State Farm and Insurance Brokers Association of Canada (IBAC) are clear indicators that online insurance options in Canada are gaining market share every month. State Farm recently launched a high-profile commercial with professional athletes and a famous actor to promote their personal touch, as online offerings powered by bots are gaining market share every day.  The IBAC started a campaign warning Canadians about purchasing insurance online and launched www.beforethequote.ca, advising to go directly to insurance brokers rather than online.

We can credit State Farm for the humorous advert and focusing on the personal touch aspect that some customers might appreciate. The IBAC has taken a different approach of provoking uncertainty and fear, the long-time insurance sales tactic, in the hope of preventing Canadians from looking online for insurance.

Billions of dollars have been invested globally into bringing insurance online with a huge focus on improving the customers experience, so we want to look deeper into the IBAC’s message and see what’s going on;

  1. Advocacy or My broker shops for me. While they can and should be, the reality is that most Canadians receive their home, auto, boat, trailer and other renewals directly from insurance companies and not from the broker. You are likely paying direct to the insurer and the renewals come direct from them too.
  2. My policy is customized.  The customization of insurance occurs long before the quote as insurers themselves have created off the shelf custom packages for home, business and auto insurance.  Insurance companies have worked hard to develop leading packages and this has resulted in very simple policies that are only subject to a relatively standard list of exclusions. The final touch to customize a policy is to ask good questions about the client, be it for business or personal insurance, which can be accomplished with online systems very easily and much more efficiently.
  3. Online insurers don’t pay claims. Online insurance is simply a different division of the same insurance company you might already be dealing with. Claims handling and behaviour from these insurance companies are going to be consistent with both channels. Buying online is not any less reliable, and it certainly does not mean that your claim won’t be paid.
  4. Online insurance is without expert advice. Online insurance industry leaders like Obvi Inc. and Zensurance have something important in common; they are brokers who provide expert advice. Customers still have access to live insurance agents or brokers who can provide guidance throughout the entire online process.  With an online chat, a customer can also ask for a transcript of the conversation to document any advice received that influenced their decisions.
  5. Lower premiums equal less coverage. It is very common for one insurer to offer the same coverage at a lower rate than another insurer. What makes the online world more competitive is how efficiently products can go to market and how claims are opened and tracked which can create substantial savings for customers. Just because insurance is cheaper online, doesn’t mean it isn’t as good if not better.

Are some people still renewing insurance in person? Maybe. Does this mean you have to buy insurance online? Not at all, but the online world is everything the traditional market fears.  It’s quick, it’s easy, it’s convenient and gives consumers the ability to effectively manage a very important product which happens to be a noticeable household expense. What kind of insurance is available online? Here are your options:

  • Home Insurance
  • Auto Insurance
  • Extended Warranty for your vehicle
  • PET Insurance
  • GAP insurance
  • Personal Umbrella
  • Life Insurance
  • Small and medium size business Insurance
  • Travel Insurance

Canada should be excited about online innovators that have re-imagined the insurance industry and the benefits available. The online insurance world is starting to open up in Canada, and it’s something to embrace rather than fear.

Why Would I Want An Extended Auto Warranty?

Why would I want an Extended Auto Warranty? 5 Reasons for purchasing one

We often focus on explaining why you shouldn’t be overpaying for an Extended Auto Warranty from a dealer, but why would you want an Extended Auto Warranty at all? Here are 5 reasons that we keep talking about here in the Obvi office;

1 – You could save thousands

When something goes wrong with your car, it’s really annoying – you suddenly realize how dependent you are on it! But what makes it worse is how much it could cost to get your car, and your lifestyle, back up and running.

Car repairs are not cheap, and if something goes really wrong and you aren’t covered, you may have to suddenly pay thousands to foot the bill. What happens if you suddenly need a new transmission or expensive electronic component – would you have around $4 – 5,000 or more ready and waiting? This can really add up over time too if you have multiple claims.

2 – Claims

It’s common to think that you can only make one claim, but this isn’t always true –  you can often make as many claims as you have too throughout the lifetime of your policy within your per claim and gross policy limits. This is true with an Obvi warranty.

We sometimes hear people concerned about per claim maximums; A whole engine replacement for a domestic car averages under $9,000, and its rarely the case that your entire engine and all of its components fail. The vast majority of failed component repairs cost under $3,000. If you own a very high-end luxury vehicle, major repairs can cost significantly more so you should be sure to understand what can go wrong with the vehicle and what coverages are available.

3 – Less financial worry

Instead of worrying about that potential huge car repair bill and whether you have enough money to cover it, you can sleep easy. If something goes wrong, you are covered. It’s important to do your due diligence to ensure this is the case. Make sure to understand your coverage before you buy, have someone at the provider explain the whole process, and shop around to compare coverage and prices so you don’t fall for a good sales pitch. Excellent customer service and a quick & easy claims process are important.

4 – No one-time component rule

Some warranties have a clause that you can only claim a component once throughout the life of your contract or policy. Obvi makes it clear that there is no one-time component rule per policy. If the air conditioning breaks, you get it fixed and then it breaks again at a later date, you are covered each time. This should be the case with any Extended Auto Warranty policy, but there is sometimes confusion and this is not made explicitly clear.

5 – Resale Value/Keeping it longer

Letting go of your vehicle can sometimes be stressful and difficult. You want to get the most out of the money you have already put into it. With an Extended Warranty, you can keep your vehicle longer without having to worry about expensive unexpected repairs that can come when it gets older. And if you decide to sell it or trade it in, you can get a much better price for a car that has a warranty than one that doesn’t.

It’s no longer the case that an Extended Auto Warranty is extremely expensive, and therefore not worth it. By bringing Extended Auto Warranty online and cutting out the middleman, Obvi’s Extended Warranty is a fair price, and doesn’t mean you are breaking the bank. In the event of repairs, you really could end up saving thousands by Obvi covering the repair bill.

To conclude; why would I want an Extended Auto Warranty? Save money, less worries, excellent coverage, and higher resale value. Simple!

Quotes for GAP Insurance

Where do you go to get quotes for GAP Insurance?

Traditionally, GAP Insurance was only sold through the dealer when purchasing a vehicle, so this is also where you would get quotes for GAP Insurance. However, this is expensive, the dealer is often not knowledgeable about the product and they are not the ones who would handle your claim. There also tends to be a sales pressure when buying insurance products from the dealer as they make a hefty commission from selling a 3rd party warranty (hence why buying from the dealer is expensive).

Obvi has completely changed GAP Insurance; by bringing the sales process online and cutting out the middleman, consumers can save up to 70%, there is no sales pressure and confusing technical jargon and consumers get a better product. Obvi has made the process of getting quotes for GAP Insurance quick & easy – you can get a quote in under 30 seconds!

Can you get quotes for GAP Insurance on used vehicles? Absolutely! It doesn’t matter whether your vehicle is new or used, as long as you meet the requirements;

  • You have to have a long-term loan (4 years / 48 months up to 7 years / 84 months) and a relatively new vehicle (up to 4 years old).
  • Both new and used vehicle purchases are eligible
  • Must be in British Columbia, Alberta, Saskatchewan, or Manitoba and recently signed a new auto loan or lease between $20,000 – $100,000

Getting quotes for GAP Insurance is so easy with Obvi. Whether you are at work, home or on-the-go, you can quickly get a quote on your phone without hassle. You can take your time to research and understand what the policy covers, and whether this is something for you. There is also no time pressure meaning you don’t have to make a pressured decision. Come back whenever you are ready, and we are here to help you if necessary.

How is GAP Insurance with Obvi different from buying at the dealership? Here is a handy comparison:

DealerObvi
Quick 30 seconds quoteX
No confusing jargonX
No commission feeX
Take your time to researchX
No sales pressureX
Simple list of exclusionsX

The way that GAP Insurance and Extended Auto Warranty is being sold in Canada is changing. Consumers no longer have to go through the dealer to get a quote for GAP Insurance, or even make a purchase. Obvi offers GAP Insurance at a fair price by simplifying the process and cutting out the middleman. Canadians should be able to go online for GAP Insurance at their leisure and purchase an important insurance product at an affordable price.

GAP Insurance On Cars

What is GAP Insurance on cars? Obvi has put together a handy guide to fully explain everything.

GAP Insurance definition: Guaranteed Auto (or Asset) Protection is a type of car insurance which protects your finances when a loan is taken out to pay for your car.

But what does GAP Insurance on cars really mean?
Take this scenario; you were involved in an accident and you totaled your car. Your insurance company determines that the car is worth $14,000. This is less than you imagined but you bought the car new so it depreciated in value over time. You still owe $18,000 because you took out a long term loan over 7 years, meaning
$18,000          – $14,000 = $4,000

What you owe – car worth = Amount you still owe
GAP Insurance protects you and will cover this $4,000 – this is the “GAP”. Obvi protects you when you take out a loan to finance your car with GAP Insurance.

What do I need to know?

  • GAP Insurance on cars is not just available if you purchased your vehicle, it also includes leased vehicles.
  • Traditionally, GAP Insurance was only sold through the dealer when purchasing a vehicle. However, this was expensive, the dealer was often not knowledgeable about the product and they were not the ones who would handle your claim.
  • Obvi has completely changed GAP Insurance on cars; by bringing the sales process online and cutting out the middleman, consumers can save up to 70%, there is no sales pressure and confusing technical jargon and consumers get a better product.

Why do I need it?

Both leasing a car and taking out a long-term loan are popular options in Canada. According to Automotive News Canada, around 25% of new cars are leased and CBC News reported that in 2018, 55 % of all new car loans were for at least 84 months (7 years). Unfortunately, people forget that leasing and 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 is stolen? Or there is a fire? Not everything is always in our control, so if you have a long term loan, you want to have reassurance that you will be financially covered in case something happens.
  • The worst case; you don’t want to be left with a loan and no car- this can happen, and that’s why you need protection.

GAP Insurance on cars is there to help protect your finances and give you peace of mind. We sometimes forget the financial risks and ties that are associated with our vehicles, and we also often forget that some events are outside our control such as theft or accidents. With Obvi you can purchase GAP Insurance online. Find out more about GAP coverage and get a free quote now.

Insurance Policy or Vehicle Service Contract?

Insurance Policy or Vehicle Service Contract?

Vehicles today are increasingly complex especially with all the electrical components, and Canadians are looking for more and more solutions to protect their investment. For decades we have all associated the term “bumper to bumper” with new vehicle warranty and while it remains undefined, the term suggests that everything between the bumpers is covered under warranty. In reality, you will be hard pressed to find it in writing from any of the major vehicle brands today or any insurance policy.

Extending the manufacturers’ warranty

Vehicles come with a 3 year 60,000KM or 4 year 80,000KM depending on the manufacturer, with a few 5 year 100,000KM warranties available and are usually referred to as “New Vehicle Warranty” or “New Vehicle Limited Warranty”. When it’s time to extend the warranty, a consumer can decide between an independent insurance policy or vehicle service contracts (VSC) from the manufacturer. Be aware that a VSC is different from the original manufacturers’ warranty, it isn’t an extension of the exact same thing and they can be open to a lot of interpretation. Here are some examples of what you will be looking at:

– OBVI Mechanical Breakdown Insurance Policies
– GM Total Plus (VSC)
– BMW Certified Series (VSC)
– Mercedes Benz Certified Series (VSC)
– Toyota Extended Care Plan (VSC) (available in Silver, Gold and Platinum)
– Acura Plus Plan (VSC)
– Honda Plus Plan (VSC)
– Ford Care (VSC) (which has many different levels of coverage)
– Audi Certified Plus (VSC)
– Other third party providers of VSC and insurance

The list goes on and on. So how do you know which warranty to chose? Let’s face it, the automotive industry is a marketing giant and when it comes to the extended warranty they have great brochures often listing hundreds of components you have never heard of. But the reality is you should be most concerned with what’s NOT covered to make the decision. After all, when you need to make a claim the brochure is out the window and the small-print policy wording is called upon. It’s time for a transparent approach to extended warranty, one which provides great coverage all with easy to understand exclusions.

Does buying an extended warranty from the manufacturer provide “bumper to bumper” coverage? No. Canadians need to read and understand the policies and beyond the coverage should be considering the following when buying an extended warranty:

– Financial stability, usually best served by an insurance policy.
– Can you transfer at a dealer? The most common way to sell your vehicle
– Are you getting warranty advice from the warranty provider?
– Where can the vehicle be repaired?
– Does it include more than 160,000 KM in coverage? How many extra years does it provide?
– Who is assisting you during a claim?

To summarize; Bumper to bumper is another way of wording Extended Auto Warranty. It doesn’t literally mean that EVERYTHING is included, although it sounds like it. Always make sure you know whether you are looking at an insurance policy or a vehicle service contract, that you understand what you are reading and are happy with what is covered.

Find more information on Obvi’s Extended Warranty or get a quick online quote here.

GAP Insurance On Lease

Can you get GAP insurance on lease car?

Guaranteed Auto (or Asset) Protection, GAP insurance, is a type of car insurance which protects your finances when a loan is taken out to pay for your car. Many people think that they cannot get gap insurance on lease cars but this is not true. With Obvi, getting gap insurance on lease cars is definitely an option.

Do you pay more for Gap insurance when the vehicle is on lease?
No! The amount you pay for Gap insurance does not depend on whether the car is on lease or not.

Leasing a car explained

Leasing a car is not the same as financing a car. When you lease a car and your term comes to an end, you either return the car or you can choose to buy the car. Both leasing a car and taking out a long-term loan are popular options in Canada. According to Automotive News Canada, around 25% of new cars are leased.

Why would I need GAP insurance on a lease car?

When leasing a car, you do not actually own the car and therefore you are responsible for returning the car back to the owner once the term is up. If you are in an accident, or the vehicle is stolen, the car insurance company will pay out the same amount as it would cost to buy that used car from a dealer. This is therefore much less than the new price due to depreciation, meaning that it wouldn’t cover the whole amount you would need to pay to end your leasing contract. This is why GAP insurance on lease cars exist, as it covers this shortfall.

Risks of a leased car

Unfortunately, people forget that both leasing a car and taking out a long-term loan over a number of years does come with risks. Here are some useful points that we often go over when we explain what’s GAP Insurance.

  • Accidents happen – Hopefully you won’t ever be in an accident, but what if it is stolen? Or there is a fire? Not everything is always in our control, so if you have a lease, you want to have reassurance that you will be financially covered in case something happens.
  • The worst case; you don’t want to be left with paying a lease and no car- this can happen, and that’s why you need protection. If you are in an accident, and the car needs to have repairs, your payments will still continue. If your car is totaled in an accident, you will also continue to make payments until the claim amount is settled.

Yes, you can get GAP insurance on a lease car, and yes the best deal is online with Obvi without paying a huge commission fee. Find out more about GAP insurance or get a quick and easy quote now.

Best Extended Car Warranty Company

Best extended car warranty company

Best extended car warranty company

When buying your extended car warranty, it’s important to make sure you have chosen a trustworthy and reliable company. How do you know what is the best extended car warranty company?

Understand the market

It’s a good idea to do some research and understand what is going on at an industry level when researching a company. For example, when looking for the best extended car warranty company, you need to understand that there are different places selling car warranties with differing motives.

The traditional method of car warranty sale in Canada is through the dealership when purchasing your car. However, this can come with many issues as salesmen are often motivated by making a quick high-pressured sale as they could earn up to 75% commission on extended warranties. They are not the business that will be dealing with you in the event of a claim and generally don’t have expertise in the product they are actually selling. The other option is going with an online company which are becoming more common. Many negative issues can be eliminated going this route. There is low sales pressure, you can deal with the same company when making a claim and cut out the middleman taking that big fee that you used to pay. When researching a new vehicle and warranty and the company providing it, it’s important to see the bigger picture and understand what kind of warranty you are getting and what process you are comfortable dealing with.

Word of mouth

If people you know and trust are telling you that they have had a great experience, this is a good way to get an introduction to a company which you can then find more information about online. Particularly when a company is new, word of mouth is really important because a new company may not have a lot of reviews yet.

Read reviews

Always check for reviews and read as many as you can! It’s important to see what customers are saying about a company, and whether or not they had a good experience. Having a few negative reviews isn’t necessarily a bad thing, after all you don’t know how trustworthy the reviewer is, but check to see if the company responded. An offer to resolve the issue, offer an explanation and apologise is better than ignoring the bad review. However, if there are numerous bad reviews and there is a recurring theme, be aware that you might experience the same issue.

Chat with or call them

Don’t hesitate to get in touch with the company if you have questions. A good extended car warranty company will respond quickly and have helpful customer service agents that are experienced and able to help you. If you don’t find that this is the case, it might be a warning sign!

We think Obvi is the best extended car warranty company

Obvi is completely changing extended car warranties in Western Canada. It’s eliminating all of the pain points that customers experience when buying at the dealer and providing warranties at a fair price by bringing it online. Obvi extended warranties provide a low pressure engaging process where you can take your time to research and readthe easy-to-understand policy.

Find out more info about Extended Warranties here or get a quick & easy quote now.

Can I buy GAP Insurance after I buy a car? 

Can I buy GAP Insurance after I buy a car? 

Customers frequently have the idea that GAP insurance can only be purchased at the time of buying your vehicle. The reason they think this is probably due to the traditional method of selling GAP Insurance in Canada, which occurs when purchasing a vehicle from the dealership. Once you are filling out paperwork in the finance office, it is common for the salesmen to try and sell you insurance products such as GAP Insurance. Unfortunately, some salesmen are quite persistent with pushing these insurance products, as they take up to 75% commission.

It could be that from the sales pitch, customers think that it is only possible to buy GAP Insurance whilst they are purchasing their car, but this is not true. It is also not the case that GAP Insurance is only sold at the dealership, as Obvi has brought GAP Insurance fully online in Western Canada.

Can I buy GAP Insurance after I buy a car? Yes, if you meet these important criteria.
GAP protection insurance is ideal for those who have a long-term loan (4 years / 48 months up to 7 years / 84 months) and a relatively new vehicle (up to 4 years old). With Obvi’s GAP Insurance, both new and used vehicle purchases are eligible, and almost anyone in British Columbia, Alberta, Saskatchewan, or Manitoba who has recently signed a new auto loan or lease between $20,000 – $100,000 qualifies.

What are the advantages of buying GAP Insurance online?
1) Time – buying at the dealership means that you can’t take your time, do your research and understand what you are being offered, and also what other options you have. With going online, you can take your time to look at as much information as you want
2) Money – going online means that you cut out the middleman and don’t pay up to 75% commission (which is why buying at the dealership is so expensive). You get the fair price you deserve
3) Pressure – there’s no pressure to buy! We won’t push you, but our experienced Insurance Experts are at the end of a phone or available for Live Chat if you need them
4) And many more! In fact, check out our blog post here to fully understand why buying insurance online in Canada is the way forward

To find out more, check out our GAP Insurance page and get a quick and easy online quote.

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 and GAP Insurance.  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 up to 175,000 KM 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, a 7 year/175,000KM 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 GAP 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.

What happens if you total a financed car without insurance

What happens if you total a financed car without insurance

It’s becoming increasingly popular in Canada to take out a long-term loan in order to finance a new car. According to CBC News, at one point earlier this year, 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. One of the major risks is what happens if you total your car.

Let’s imagine this scenario. You took out a loan of $25,000 to pay for your new car. You’re in an accident and your car is totaled. Your insurance company determines that the car is worth $17,000. This is less than you imagined but you bought the car new so it depreciated quickly in value over time.

The insurance company pays the bank $17,000, and you still owe $8,000. This is what happens if you total a financed car without insurance.

However, Obvi offers a solution: GAP Insurance. Guaranteed Auto (or Asset) Protection is a type of car insurance which protects your finances when a loan is taken out to pay for your car. Going back to example of owing $8,000, this is what GAP Insurance covers.

Why do I need it?

Here are some useful points that we often go over when we explain what’s GAP Insurance.

  • “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 is stolen? Or there is a fire? Not everything is always in our control, so if you have a long term loan, you want to have reassurance that you will be financially covered in case something happens.
  • The worst case; you don’t want to be left with a loan and no car- this can happen, and that’s why you need protection.

Summary:
What happens if you total a financed car without insurance is that you could be left with a large sum you have to pay. GAP Insurance covers the GAP between the value of the car and the amount you owe in case something happens such as accident or theft. With Obvi you can purchase GAP Insurance online. Find out more and get a free quote now.