What’s the best extended car warranty in Canada?
Are you trying to determine the best extended car warranty in Canada? If you are familiar with traditional warranties, uncomfortable memories may pop into your mind. For example, you may remember spending hours in a car dealership navigating complicated options and financing with a finance manager or struggling to figure out how to make a claim and who you should call.
You could say that the automobile industry is a late adopter of quality warranty service. Alleviating customer pain points has not been a top priority for the industry, especially regarding extended auto warranties offered in Canada.
Consumers demand better, more affordable, and more transparent car warranty services. Options away from the traditional in-store car sales game have become available online. Options are a good thing. Better, more reliable service? Also, good. Let’s explore some of those options.
What is an extended vehicle warranty?
When you purchase a new vehicle, it will come with a manufacturer’s warranty. Depending on the brand and specific vehicle components, they typically last 3-5 years and a range of kilometres. But what happens when you’ve reached those kilometres or years? Luckily, you can extend the warranty period for your vehicle. You can add an extended car warranty to ensure repairs for failed vehicle parts don’t come out of your pocket.
Extended warranties can vary in price, parts coverage, length of time and mileage, service level, payout, deductible, and benefits features. Coverage can even vary from one province to another. Read our guide to extended warranties in Canada.
The main reason to buy an extended warranty plan is to save money and avoid the stress of a sudden breakdown and expensive repairs. For some drivers, having major car repair bills can be too much of a strain on their finances. Others want to save money and have peace of mind in knowing that they are covered.
Extended car warranty: what does it cover?
The coverage can vary widely depending on where you purchase your extended warranty. You will have to decide what is important to have covered and at what cost. Do you want protection for all the bells and whistles or limited protection for some essential items?
The main components that warranties may cover are;
- Engine
- Transmission
- Steering
- Drive Axles
- Suspension
- Brakes
- Heating / Cooling
- High-tech
- Electrical
But you can find extended warranty coverage that includes all or just a few of these parts. Pay attention to the fine print and avoid relying on brochures that gloss over the details. Extended warranties won’t cover cosmetics, general maintenance, accident damage, or wearable parts. Check out this handy new and used extended car warranty guide for more details.
Where can I buy a car warranty?
Here’s the critical part: you have options when buying an extended warranty in Canada for your new or used car. It doesn’t need to be from the dealership, and it doesn’t need to be right when you buy your vehicle. Always consider who the actual warranty provider is when shopping for the best extended car warranty.
One option is the dealership. Car dealerships are essentially a middleman. Like all brick-and-mortar establishments, the costs to provide services are inflated by sales commissions and the overhead required to operate and maintain a building. That cost gets passed on to you. By cutting out this middleman, you can avoid the pain points of the experience and the inflated price of the product you are buying.
Your other option is to shop online. Buying a warranty for a new or used car online means several things. You can take time to do your research and won’t have sales pressure because you can do it from home. You should also get a more transparent service and a fairer price.
So, what is the best extended car warranty plan in Canada?
We recommend comparing warranty quotes. To read about a warranty provider, you can check resources such as Top Consumer Reviews and the Better Business Bureau ratings. Here are five things to consider when deciding which is the best extended car warranty:
Industry Standing: Extended warranties are long-term commitments. Ensure your policy is with a reputable company backed by a Canadian insurer with A-rated financial status. That ensures your claim will always be paid.
Coverage: What does the extended warranty cover? Look for something that will cover as much as possible, preferably full coverage like the vehicle comes with new. Always check the coverage terms to understand what you’re getting, and don’t rely on brochures. Check for added benefits like roadside assistance or rental car reimbursement.
Cost: Compare quotes and look for the best value. A good extended warranty shouldn’t come with inflated commissions. Make sure the coverage you are getting makes sense for the price.
Transparency: Are you given all of the information upfront? Is there heavy sales pressure? Make sure you speak with someone to clarify any questions you have.
Customer Service: Check each warranty company’s responsiveness and helpfulness. What kind of reviews do they have? This will help you narrow your search for the best extended car warranty.
Here is a quick look at what Obvi offers:
- Get a free online quote for an extended warranty plan in less than a minute.
- Coverage options to meet your time or mileage needs.
- Live chat connects you directly with qualified Obvi advisers to answer questions as needed.
- There is no “buy now!” pressure. Obvi can cover vehicles up to 10 years of age with under 200,000 km (although the policies are always the most affordable when the vehicle is newer).
- Peace of mind that you have a Canadian-based company backed by an A-rated insurer.
- You get coverage you can review before buying, not just a glossy brochure you’d be asked to skim through and digest at the dealership.
- Lasting value. The extended warranties are transferable to the vehicle’s next owner (or dealership, should you be trading it in). You can advertise it as a bonus when ready to sell. Obvi has the only extended warranty in Canada that allows transfer through a dealer trade.
- Visit any repair facility you choose to make a claim.
- You can cancel your warranty if your vehicle is written off and receive a prorated refund.
Find out more about Obvi’s extended warranty and get a free quote. If you have any questions, you can chat with a live adviser or schedule a call!