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What’s the best extended car warranty in Canada?

By | Extended Warranty

best extended car warranty canada

What’s the best extended car warranty in Canada?

Some people may not be too familiar with extended auto warranties, and if you are, you  probably associate it with spending hours in the finance office of the dealership when buying a car going through a confusing sales process. Traditional sales processes and the extended warranty products themselves that have been on the market in Canada have created numerous pain points to extended warranty for consumers. Thats why we think Obvi is the best extended car warranty in Canada, because we have taken those bad points and eliminated them. To  prove it, lets start with what some of the negatives about extended car warranty in Canada are, and how Obvi has changed them:

  • I don’t understand the policy. Many policies being sold are full of technical jargon that might leave you confused. The sales brochures and policies themselves often list hundreds of components that are covered or not covered, the average person really cant tell what they are getting. With Obvi, the policy is easy to read and understand and put in simple terms.
  • You pay a lot for extended warranty at the dealership – 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 avoiding the difficult sales process. Obvi policies are priced fairly, and you save money.
  • 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. This means you are covered under detailed government financial regulations and a financially stable insurance company.
  • 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 provisions in the policy.

Obvi – the best extended car warranty in Canada

Obvi is disrupting the market in Canada by bringing Extended Warranty online and saving Canadians money. Going online to purchase extended car warranty gives the consumer so many advantages and is one of the reasons  Obvi is the best extended car warranty in Canada. Here are some of the advantages of going online;

With online insurance you can shop where you like, when you like, can better pick and choose your coverage and can easily compare what different companies are providing.

Who wants to waste time calling for quotes or traveling to an office to meet in person when everything can be done in minutes online?

By going direct, the extra commissions can be removed saving you money.

An online policy will allow you to see and understand all features of what you are getting. In addition, you can review the reputation of the company issuing the policy.

A good online broker will make it easy to connect and answer questions and provide a level of advisory to complete a policy purchase. You shouldn’t have to waste time and worry about getting your questions answered.

Find out more about Obvi’s extended warranty and get a free quote.

Should I buy extended warranty on my car?

By | Extended Warranty

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 7 years or 175,000 km, whichever comes first. 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.

What’s GAP Insurance?

By | GAP Insurance

What’s GAP Insurance?

Although some people will have heard of GAP Insurance, others won’t have, and will have found some of the explanations on the Internet a bit confusing and not very helpful. I’ve created an article with everything you need to know about what GAP Insurance is.

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.

What’s GAP Insurance: Let’s break it down

That’s the definition, but what does it actually mean? Imagine that you were involved in an accident and you totaled your car. Your insurance company determines that the car is worth $13,000. This is less than you imagined but you bought the car new so it depreciated in value over time. You still owe $17,000 because you took out a long term loan over 7 years, meaning
$17,000          – $13,000 = $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.

Why do I need it?

Long term loans are becoming more popular in Canada. 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. 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:
GAP Insurance is for when you buy a car and you have a loan to finance your purchase. It 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.

Warranty Contract or Insurance Policy

By | Extended Warranty, Insurance Online

Warranty Contract or Insurance Policy

Warranty Contract or Insurance Policy

Extended Warranty is something that customers know and love, a one-time investment in future peace of mind.  But what happens when the company you have purchased from goes bankrupt? And what steps can be taken to ensure you are covered no matter what?  Most extended warranties are long term, 3,4,5,6 or 7-year extended warranties which in this rapidly changing retail world should have consumers concerned about the financial stability of anyone providing an extended warranty.

With the recent bankruptcy of Sears and the demise of others like Future Shop, customers need to be reminded that a warranty contract from the retailer isn’t always as reliable as it once was. The auto industry was saved by gov’t bail outs after the 2008 Financial Crisis and with the North American automobile market is struggling to find ways to keep new buyers coming through the doors, it only creates more concern for warranty purchases.

Lets breakdown the two forms of warranty available in the market:

Manufacturer’s Extended Warranty Contract (Service Contract)

Dealers are heavily incentivised to sell the manufacturer’s extension of your vehicle warranty.  There is no standard format, wording or regulatory framework around this method of extended warranty. Most importantly, there is no monitoring of the financial stability or ability to pay the claims.

Insurance Policies – Extended Warranty

Consumers have the option of purchasing an insurance policy to extend the warranty of their vehicle. In fact, many dealers are selling third party insurance policies with excessive markup while the customer isn’t aware they can look online.

With the help of Obvi Inc. this can be done without paying dealership commission, which is how you save money. When you receive advice from Obvi, it’s good to remember that this is the same company that would handle your claim.

Obvi sells insurance policies, and unlike some where you are locked in after 30 days, if an event happens such as your car is stolen, you do have the option to cancel. Obvi gives you a plain and simple insurance policy that is easy to understand without technical jargon and is built to pay claims.  Our motto – if it’s not excluded, it’s included! With very few excluded components, this is great for customers given the significant savings and long-term financial stability.

If you’re looking to save money and not pay the middle-man, and want to know that you will be paid in the event of a claim, Obvi Inc is the perfect solution. Get a quote today.

Canadian Insurance Market

By | Extended Warranty, Insurance Online

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.

Buying Insurance Online

By | Extended Warranty, GAP Insurance, Insurance Online

6 Reasons Why Canadians Should be Buying Insurance Online

Almost everything these days has moved online, some things faster than others. There is no doubt there are many advantages to moving to the online world be it in banking, retail sales, social networking, news and just about any other thing in our lives. But some things have been much slower to move online than others, which brings us to insurance. Most of us are still buying our insurance like it’s 1999. Lately there has been a big push for home and auto online but what about all the other products out there? Most of the European insurance industry is light years ahead of Canada as less than 5% of insurance is currently transacted online in Canada.

Going online is the best

Traditional insurance sales will try to scare you away from online by pushing that you don’t really know what you are getting, your policy isn’t custom tailored to you, and you don’t get the benefits of an expert that knows the product. But are you really getting that now and will you really be losing any of that? Here’s why you should be buying insurance online.

Reason #1- Control

With online insurance you can shop where you like, when you like and can better pick and choose your coverage. You don’t have to rely on the traditional channels that sell one or two companies’ products. It’s also easy to check a company’s reputation and level of service. You can also easily compare what different companies are providing.

Reason # 2- Your Time

In our fast-paced world, you don’t have time to shop around for your insurance using the old methods of calling and asking for quotes, waiting for a response, and having to decipher what coverage you are getting. You can also shop on your own time when its convenient for you rather than a company’s office hours.

Reason # 3- Your Money

Buying insurance is often a necessity for a variety of reasons but why pay so much more for something because of outdated processes? Technology has drastically cut the amount of hands that are needed to get you the best possible coverage. By going direct, the extra commissions can be removed saving you money.

Reason # 4- Less paperwork

Processes can be streamlined, and information kept digitally. Ever want to know what’s covered on your policy and tried to find that renewal document you received last year? Online forms are interactive and can help eliminate unnecessary lines of questioning. You can upload supporting documents without the need to photocopy, courier or mail.

Reason #5- Transparency

An online policy will allow you to see and understand all features of what you are getting. In addition you can review the reputation of the company issuing the policy. Always remember to carefully review policies and if something isn’t clear engage the chat bot who is a live insurance agent.

Reason # 6 Easy access to complete policy details

A good online broker will make it easy to connect and answer questions and provide a level of advisory to complete a policy purchase. When going through the quote process, you should be able to carefully review what coverage you are getting and do it when its convenient for you. Again, always remember to carefully review policies and if something isn’t clear contact the company and ask.

So there you have it; Canadians should be buying insurance online. It’s simple, convenient for you and can save you a lot of money. Get started today with a quote from Obvi.

Which Cars Have The Best Warranty?

By | Extended Warranty

When researching your next new or used vehicle purchase it’s a good idea to consider which one comes with the best vehicle warranty. All new cars, trucks, and SUVs come with a manufacturers comprehensive and powertrain warranty.  Most comprehensive manufacturer warranties are 3 years/60,000 km or 4 years/80,000 km with powertrain coverage generally being longer. Whats the difference between comprehensive and powertrain?

Comprehensive Warranty Powertrain Warranty
·        Covers defects in workmanship on most all working parts of the vehicle such as electrical, fuel systems, air conditioning ·        The powertrain warranty covers the parts of a car that provide power and make it move. This is the engine, transmission and drivetrain.

 

Other types of vehicle warranties included from the manufacturer:

  • Hybrid/Electrical powertrain coverage is also provided for a separate term and varies amongst automakers, but most are around 8 years/160,000km.
  • Roadside assistance is also included with new vehicles and ranges anywhere from 3 to 6 years or 60,000km to unlimited km’s.
  • Some manufacturers provide varying terms of coverage for certain components such as emissions, radio systems, batteries and other wear parts.
  • Manufacturers include varying terms of rust perforation warranty on new vehicles.

Its important to read the fine print of any warranty and understand the various levels of coverage.

Which car comes with the best car warranty in Canada? That goes to Mitsubishi offering the overall best vehicle warranty at terms of 5 years/100,000 km for the comprehensive coverage and the best powertrain warranty at 10 years/160,000 km.  You can decide for yourself which car company has the best vehicle warranty depending on what your needs are. A list of the current coverage each manufacturer offers for its comprehensive and powertrain warranties is provided at the end of this blog to help you determine which car has the best warranty for you.

Regardless of the type of vehicle considered, you may notice that all the manufacturers warranty’s have something in common: coverage generally expires long before it is truly needed.  Each manufacturer has determined when they can offer protection without having to charge for it and this equates to what is known as manufacturers warranty. Once the time or distance allowed has been exceeded, an extended warranty is needed for further coverage.

What’s the best extended car warranty? We have discussed this topic in previous blog posts to some extent but here are some additional things to consider. Automotive retailers are in a position to offer:

  • A third-party warranty, most likely in form of an insurance policy
  • Extended coverage from the manufacturer, most likely in a “service contract”

What is often misunderstood at this point is that the automotive dealer is selling a policy or contract for which they have no overview or administration role in the event of a claim. The sales agent has a laundry list of tactics and years of sales training to earn a commission. Car buyers should look online for alternatives and ask a lot of questions. Don’t feel pressured to immediately buy the extended warranty at the time your purchasing your new vehicle.

Here are some things you should be concerned about:

  • Transfer/Cancellation options– your needs are always changing does your warranty support that?
  • Time and Distance –Don’t let years of coverage trump KM’s. Make sure the extended warranty doesn’t expire before 160,000 Km’s
  • Offer of a “no claim credit”– If it sounds to good to be true it usually is. Typically you pay a premium for this and getting the money back is rarely a straightforward process and might require the purchase of a new vehicle from the same dealer.
  • Fine Print– You mostly need to be concerned about what isn’t covered – fancy brochures won’t be brought out when a claim happens.
  • Price– Shop around, rarely do you get a reasonable price for extending a warranty at a dealership.

Find out more about Obvi and our Extended Warranty and get a free quote now.

How Does GAP Insurance Work?

By | GAP Insurance

How Does GAP Insurance Work?

 

How does GAP Insurance work?  As a relatively new insurance product to most people, many often ask this question. First, one of biggest downsides to purchasing a new vehicle is depreciation. Research suggests the average vehicle depreciates by 11% the minute you drive off the lot and an additional 14% by the end of the first year.  So how does that compare to your loan balance?  When you factor in long term loans, low to no down payments, and all the dealer’s fees and interest loaded into the loan, you can owe significantly more than your vehicle is worth.

So, what happens if your vehicle is a total loss before the loan obligations are complete? The amount your car insurance provider pays on your totaled car, SUV, or truck has nothing to do with your loan balance.  They will pay you a predetermined book value and you will be responsible for the remaining loan balance.

How GAP insurance works is by paying you the difference between your insurer’s settlement and your remaining loan balance. It is an add-on car insurance coverage that can help vehicle owners cover the “gap” between the amount they owe on their car and the car’s actual cash value in the event of fire, theft, or accident. If you’re financing a vehicle for a dollar amount that’s larger than what the vehicle is worth, GAP insurance can be a very good idea to protect yourself financially.

Obvi GAP insurance allows you to finance your vehicle with peace of mind knowing that your loan obligations are covered in the event of a total loss. It pays the difference between your insurer’s settlement and your loan balance, up to a maximum of $40,000. Get a free instant quote today and protect yourself against financial hardship tomorrow.

Should I buy the extended warranty for a used car?

By | Extended Warranty
Should I buy the extended warranty for a used car

Should I buy the extended warranty for a used car?

 

Extended auto warranty can be excellent peace of mind when buying a new or used vehicle, but is a used car extended warranty worth it? Where is the best place to buy an extended warranty for a used car?  The reality is that vehicle repairs can be hard on your wallet and while maintenance helps, sometimes you just can’t avoid these expensive repairs.  A good extended warranty is an excellent option when getting a used vehicle but here are a seven important things to consider:

1.Stability: Dealers will likely have the option to sell you a “warranty contract” vs the insurance policies offered by independent providers. Insurance policies have several advantages with financial stability and ability to pay claims topping the list.

2. Cost: Peace of mind is great but at what cost? Like most products sold in the dealer finance office, you have the option of looking around to avoid the often large commissions.  The question ” Should I purchase extended warranty on a used car? ” often comes down to cost vs benefit. Shop around, it can save you a lot of money.

3. What’s covered (or not): Warranty providers have been famous for lavish brochures listing what is covered, but the real question is: what’s not covered? Considering most of us can’t name the components that make up our vehicle how do you know what isn’t included? Look for warranties based on what isn’t covered much like you would with house insurance.

4. Repair Shop: You deserve the right to choose where your vehicle is repaired. The choice should be yours whether it’s your local dealership or favourite repair shop. Should you choose to get extended warranty on a used car, make sure you have that option.

5. Transfer and Cancellation: Life changes quickly and an extended auto warranty is a long term investment. A good product will allow for transfers and cancellations if need be.

6. Eligibility: Extended warranties are often difficult and more expensive to purchase after the manufacturers comprehensive warranty has expired so if you are considering a used vehicle find out it if it has a 3 year/60,000 km, 4 year/80,000 km, or 5 year/100,000 km comprehensive warranty that is still valid. If it does you can extend it with a product that makes sense.

7. Term: Make sure the length of the extended car warranty gets you maximum value for the price. Considering most major mechanical breakdowns occur after 5 years and 100,000 km, paying many thousands of dollars for a warranty that doesn’t go beyond just isn’t worth it.

Buying an extended warranty on a used car should be a straightforward and easy process that doesn’t come with a lot of confusion, cost, and regret. Should you decide to buy extended warranty on a used car avoid aggressive sales pitches and do some research before committing.

See our extended warranty page for more information and try an instant quote.