Welcome to the Obvi Blog

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 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.


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.

News Release: Obvi Insurance Myth Busting: The Top 6 Problems With Traditional Car Warranties

By | About Obvi

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”.

For more information about Obvi, visit obvi.ca

Transfer and Cancellation Clauses: What you need to know

By | Extended Warranty
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?


  • 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!

By | About Obvi, Extended Warranty, GAP Insurance

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!

News Release: Calgary entrepreneur tackling biggest problems around warranties

By | About Obvi

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?

By | About Obvi

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 www.obvi.ca and we will be around when you need to make a claim!