If your vehicle is involved in an accident and needs serious repair work done, one of the last things that you want to worry about is the vehicle decreasing in value.
Now imagine how much harder it would be to trade in or privately sell a vehicle with a replaced door that’s not quite the same colour as the rest of the car, or a replaced spoiler that’s clearly an aftermarket part.
One sad but common practice in the insurance industry is insurance companies forcing repair garages to seek out the cheapest parts available when fixing vehicles after a partial loss. Not only does this include aftermarket parts, it also often means parts pulled from scrap yards.
This problem is one of the many reasons why the demand for OEM parts has become popular among many automobile owners. Short for “Original Equipment Manufacturer,” OEM parts are ones made by directly by the vehicle’s manufacturer.
There are a few different perks to ensuring that your vehicle is repaired using OEM parts.
First, as touched on earlier, OEM parts can also help to protect the investment you made in your car, truck or SUV. If you decide to sell or trade in your vehicle in the future, well-trained eyes can notice whether important parts are OEM or aftermarket, leading to a tougher sale or reduced dollar figures in an offer.
Another perk is that you get the peace of mind of knowing that the parts were originally intended to fit the specifications of your vehicle make and model — in other words, that they’re the exact parts that the manufacturer wanted to be used.
How Obvi can help
Don’t get stuck owning a one-year-old vehicle with parts from a junkyard.
Customers who purchase a New Car Replacement Insurance policy from Obvi have the choice of adding on OEM parts protection to their coverage. This option pays up to $2,500 per year in additional costs to ensure that OEM parts are used in your vehicle. And with coverage for up to five years, you’ll ensure that your vehicle investment is protected for longer.
Going through problems with your vehicle can be a stressful experience — the loss of use of your vehicle, the disruption of your plans and schedule, the new errands required to get the vehicle back on the road, etc.
Obvi knows that the last thing you want in that kind of situation is more stress, which is why we try to keep our claims process as simple and straightforward as possible for clients who have a policy with us.
Here is a quick explainer of how our claims process works for our different policies:
Extended Warranty claims
Contact us and let us know there is something wrong while you go to any licensed repair facility in Canada or the U.S. for a repair estimate.
Have the shop contact us regarding the estimate to repair. We will need a copy of the estimate emailed to email@example.com. Most claims only take a few moments to approve.
Once approved, the shop can proceed with the repair. We will then pay the repair bill directly via credit card. You’re on your way!
New Car Replacement claims
If something has happened to your vehicle and it has been written off by your auto insurer, contact us.
We will request your claim information for processing.
Winter is right around the corner, and with it comes something that most vehicles owners in Canada dread: winter driving.
Not only are the roads harder to navigate because of all the snow and ice, the cold weather also makes life a lot harder on your vehicle’s engine. Whether you’re trying to avoid dangerous accidents or costly trips to the mechanic, how you prepare your vehicle for winter is incredibly important.
Here are some of Obvi’s top tips and tricks to keep your vehicle safe and running during the coming winter months.
Put winter tires on your vehicle
This one might seem like a no-brainer, but a lot of vehicle owners still neglect to do it.
Even though a set of winter tires isn’t cheap, the added traction and stability on icy, snow-covered roads could save you from the costs of an accident — both personal and financial.
Get a winter checkup
Does your vehicle have enough engine coolant and antifreeze? Is your engine using normal oil or synthetic oil? Are your belts and hoses nearing the point of failure? How strong is your battery?
Cold weather is hard on our cars, trucks and SUVs, raising the chances of breakdowns and other problems. A quick and affordable winter checkup, which can be performed at most licensed repair facilities, is a good idea every year.
Keep an emergency kit in your car
There are few driving situations more stressful — or more dangerous — than being stranded on the side of the road with the temperature dropping.
That’s why it’s a good idea to keep a winter emergency kit or supply box in your vehicle.
Some items that are useful to have on hand include, but are not limited to: a portable (and fully charged) battery pack and connecting cable for your cell phone, a warm blanket (or multiple warm blankets), a change of warm clothes, a flashlight, a first-aid kit, a radio, a bag of sand (to help get a vehicle unstuck), an extra pair of gloves, non-perishable snacks, road flares, an ice scraper and a shovel.
Learn seasonal driving tips and techniques
Simply put, driving on icy and snowy roads is much different than driving on clean, dry pavement during the warmer months. With less road traction and reduced visibility, drivers need to be much more careful and alert when they get behind the wheel.
According to Transport Canada, some tips and techniques for winter driving include removing all snow from the vehicle’s exterior before moving, use your lights to make yourself more visible, give yourself extra time to make trips, avoid using cruise control on slippery surfaces and, most importantly and applicably, SLOW DOWN!
Get vehicle replacement insurance
Even if you take all the necessary precautions and drive as safely as you can, accidents can still happen — after all, you can’t control the other drivers on the road. And if an accident happens in the winter, getting around in the cold weather without a car can be quite a challenge.
In the event of a write-off your insurance company might reimburse you, but what they’ll pay is the depreciated Actual Cash Value of your vehicle —not what you initially paid. If you need a vehicle that can handle driving through deep snow or reliably make highway winter drives, sometimes that insurance payout isn’t enough to get you back behind the wheel of the type of vehicle that you need.
Purchasing vehicle replacement insurance, such as the kind offered by Obvi, is a great way to ensure that your investment is protected against costly depreciation in the event of an accident. You can contact Obvi to learn more about vehicle replacement insurance.
You recently purchased a new vehicle and you’re looking to buy an extended warranty for it to help protect your investment. The dealership you bought the vehicle from offered you an extended warranty, but the price seemed really high and the pushy salesperson in the finance office rubbed you the wrong way.
So, you decide to look online for an extended automobile warranty instead. After a few minutes on Google you discover a warranty policy that’s thousands of dollars more affordable than what the dealership was offering, and the coverage terms are better as well, but it’s being offered by a company that you’ve never heard of before.
The product seems too good to be true. How do you determine if what you’re seeing is the real deal, or all just smoke and mirrors?
To help make life easier for consumers, we’ve compiled this handy guide to help separate the contenders from the pretenders when it comes to warranty products by explaining what factors to look for.
They’re a licensed insurance company
Insurance is an important, far-reaching industry that affects the lives (and bank accounts) of millions of Canadians, which is why provincial and federal governments have enacted a wide array of legislation to regulate it. This is a huge benefit to consumers, who are protected from both fraudulent and careless companies.
When it comes to warranty products, buying them from licensed insurance companies is a huge advantage because they are bound by more laws than non-licensed companies are.
They’re backed by an A-rated insurance company
If one licensed insurance company is secure, two working in collaboration is even more secure! This is a common occurrence in the insurance world, especially when it comes to brokerages and new companies.
Within the insurance industry you can also find credit rating agencies, which specialize in analyzing and reporting the reliability of insurance companies. AM Best is one of the most well-known of such organizations, and they issue ratings using letter scales, with “A” being good and “D” or “F” meaning bad.
If you discover a company you’ve never heard of, but they’re backed by an A-rated insurance company, that is a strong indicator of their credibility and security.
They offer a personal touch
Consumers need to be careful when shopping online. Unfortunately, it’s possible for dishonest individuals to start faceless companies, offer up little background information, take money from customers and then disappear without ever holding up their end of the bargain.
It’s always a good sign when companies offer a personal touch, whether on their website or when they communicate with you. If you know an employee’s name and have a way to reach them directly not only is your business more safe, you’re also more likely to receive excellent customer service once a customer-employee relationship has been built.
There are positive customer testimonials
The internet has made it wonderfully easy to share information, and that includes company feedback and customer experiences. Consumers now have the ability to protect and help one another by sharing their experiences online. If a company’s website lists positive testimonials written by previous or existing customers, that’s a great sign about its trustworthiness.
And when it comes to online reviews, keep an eye out for negative ones — or a lack thereof. Consumers who have negative experiences with warranty products are significantly more likely to leave reviews than consumers who never have any problems. An absence of negative reviews can say a lot about a company, even if the total number of reviews is low.
Their policies have cancellation clauses
Nothing exudes confidence in a warranty product quite like a company offering a cancellation clause. While some unscrupulous companies might want to lock down your money while later breaking promises about their product or service, offering consumers the option to cancel their policy (within predetermined terms that are fair to both parties, of course) is evidence that a company is credible and authentic.
The Obvi advantage
Obvi strives to go above and beyond to ensure that our customers are safe and satisfied with us.
As such, we’ve incorporated all of the above factors into our business: we’re a licensed insurance company, we’re backed by an A-rated insurance organization, we offer a personal touch, we share customer testimonials and we include cancellation clauses in our policies. But if all of that isn’t enough, we make ourselves easy to contact if you ever want to learn more about us.
As a famous old saying goes, “A penny saved is a penny earned.”
There are many strategies and tricks that consumers can use to use to save a little more in their bank accounts or scrounge up some extra fun money, but one area that a lot of people don’t think about investigating is what they pay for insurance in all of its various forms.
Luckily, the recent rise of a concept called “Insurtech” is changing the industry and — more importantly — helping consumers save thousands of dollars.
What is Insurtech?
According to the website Investopedia, Insurtech is “the use of technology innovations designed to squeeze out savings and efficiency from the current insurance industry model. Insurtech is a combination of the words “insurance” and “technology,” inspired by the term Fintech.”
The definition continues:
“The belief driving Insurtech companies and investments by venture capitalists in the space is that the insurance industry is ripe for innovation and disruption. Insurtech is exploring avenues that large insurance firms have less incentive to exploit, such as offering ultra-customized policies, social insurance, and using new streams of data from Internet-enabled devices to dynamically price premiums according to observed behavior.”
To put all of that another way: by utilizing new technological advancements, companies are able to make the world of insurance faster, easier, more convenient, and more affordable for consumers.
How does Insurtech benefit you?
Beyond making insurance more cost-effective, Insurtech can benefit you as a consumer in a wide number of other ways, depending on the company and what they’re offering.
Some common uses of Insurtech include receiving online quotes for home, auto, extended warranty, or vehicle replacement cost insurance that can be compared to competing companies, connecting consumers to live agents through chat systems wherever an internet connection exists, understanding coverages in more detailed and interactive ways, and many more.
Broadly speaking, Insurtech gives consumers more control and flexibility over how they manage their insurance.
But what if you could purchase Extended Automobile Warranty and New Car Replacement Insurance from the comfort of your own home — and at a significantly lower price than what is offered at a dealership? That’s where Obvi comes in.
The most important benefit of Obvi using Insurtech, though, is how the technology helps us offer our customers a fair price and financial peace of mind. Many people can’t comfortably afford a $4,000-$5,000 repair bill, and nobody wants to pay off a huge remaining loan balance on a vehicle that has been written off. As mentioned earlier, being smart with your money is incredibly important these days.
Have you ever walked out of a car dealership’s finance office carrying keys to a new vehicle and a bundle of complicated paperwork — without feeling entirely comfortable or informed about what you just purchased? If so, you’re not alone.
Most of us think we can rest easy once we get to the finance office, but the unfortunate reality is that this is where the some of the biggest dealer fees exist, hiding in insurance premiums and monthly payments.
Finding a new vehicle to purchase can be a stressful and confusing process, and those problems are often made worse when you add in an overload of information about extended warranties and financing payments. It’s not uncommon for car buyers to leave the finance office confused with all the different options.
While many car dealerships are honest and trustworthy, some of them aren’t. These other dealerships often deploy deceitful sales tactics to help close a deal, focusing more on getting into your wallet than offering you services that you need or want.
Here are the biggest things to watch out for in the finance office.
Huge markup on insurance
That’s right, motor vehicle dealers have been provided a restricted insurance license to sell New Vehicle Replacement Insurance and Extended Warranty on your vehicle. What most people don’t know is that the markup is huge — 40, 50 and even 60% or higher commission charged by the dealers and built into these products. Let’s break down these products:
New Vehicle Replacement Insurance: As mentioned above, your existing insurer will settle any total loss claim based on the current depreciated value of your vehicle. With NVR you will benefit from the insurance proceeds to buy a brand new vehicle without any additional costs to you.
Extended Warranty: That’s right, Extended Warranty is now considered insurance in Western Canada. Why? So many problems within the industry drove the need for regulation to protect the consumer. What many people don’t know is that dealers have competition, and the coverage from independents is just as good if not better. Plus, you will benefit from transfer options, half the cost, choice of repair facility and the list goes on. Buying a new vehicle? The manufacturer’s extension might not be insurance, but the same heavy commissions are loaded within. Luckily, insurance alternatives exist and offer huge savings!
Upselling the payment plan
An extra $9 a week for 8 years… that sounds a lot better than $3,744, right? Nothing wrong with financing options, but make sure every single product they are selling is presented to you as a total cost. Whether it’s automotive sales or a household appliance, salespeople are trained to understand your monthly budget to hide the actual cost.
This CBC Marketplace episode shows just how aggressive the payment plan is pushed.
Don’t be afraid to ask a salesperson to slow things down, repeat themselves or write out specific numbers for you. Taking the extra time to fully comprehend what you’re buying could save you thousands of dollars.
A lack of willingness to help down the road
You wouldn’t buy house insurance from a realtor, or life insurance from a doctor — so why are we accustomed to buying car insurance from car dealers? The reality is that the insurance market has taken time to get online and that was the only choice consumers had. However, now we can buy directly from the company who will be paying the claim.
Think about this scenario: a total loss claim has occurred and you’ve emailed the finance office about your problem, but they haven’t emailed you back after a long period of time. You decide to call the dealership, but your call gets bounced between a couple of different employees and then you’re told to contact the warranty/insurance provider of the plan they sold you. The sad truth is that the finance office has ZERO involvement in the claim and is limited to obtaining commission dollars from you.
Let’s also not forget the biggest myth in the industry: “if you buy the manufacturer’s product from me you can rest assured all claims are covered, no matter what.” Not exactly the case — the extended warranty from the manufacturer is subject to terms and conditions just the same as insurance policy. Read our blog here to learn more.
The Obvi advantage
For the team at Obvi, customer satisfaction is the highest priority.
We know how important vehicles can be in people’s lives. Our goal is provide as much peace of mind as possible that you’ll be in good hands and back on the road again soon. As both a seller of extended automobile warranties and a handler of claims, we’re with you every step of the way. And while dealership salespeople can be pushy when commissions are on the line, that’s not the case with Obvi. More than anything else, we want you be satisfied with your experience.
Obvi is now offering New Car Replacement Insurance in addition to extended warranty. In this blog, we explain what Vehicle Replacement Cost Insurance is and why it can be worth it.
What is New Car Replacement Insurance?
In the event of an accident, comprehensive / collision insurance will cover the current value of your vehicle. This means that if you bought a new vehicle and several years later you had an accident, your vehicle would be worth a lot less than what you originally paid for it due to depreciation. This comes as a surprise to many drivers, who pay insurance premiums year after year while the insurance company limits the claim amount as much as possible. Replacement cost insurance will cover you for the depreciated loss, meaning you get a brand no car and don’t have to be out of pocket.
New Car Replacement Insurance example
You purchased your vehicle used 3 years ago for $32,000. After 3 years of use, at an average depreciation rate of 10% per year, its current value is now $23,000. You really liked your car and have your eye on the brand-new model, which now costs $40,000. What will your insurance policy contribute?
If you only have collision / comprehensive insurance, your primary insurance settlement will be for the current value of your vehicle: $23,000.
If you purchased a New Vehicle Replacement Insurance policy, you would receive the additional $17,000 towards a new vehicle on top of the $23,000 so that you could purchase the new $40,000 vehicle using both settlements.
Why do I need this type of coverage?
We love new vehicles, but the reality is that they depreciate the second we drive off the dealership’s lot. What’s even worse is that this plays to the advantage of your insurance company, which now gets to pay less if there is a claim.
With New Car Replacement Cost Insurance you can get the true benefit of buying collision / comprehensive insurance by not having to pay the full loss of depreciation.
Other benefits available
Beyond simply covering the difference of depreciation, a New Car Replacement Cost Insurance policy in BC and Alberta with Obvi can also include a number of other different perks:
OEM Parts : Your existing collision/comprehensive insurance policy will pay to repair your vehicle after a partial loss with the cheapest available parts. These could be recycled parts from a scrap yard or aftermarket parts of lesser quality. OEM Parts pays the difference between the cost to repair with those parts and the cost to repair with brand-new parts from the vehicle manufacturer. Coverage until model year 5, $2,500 coverage per year, maximum $10,000 coverage per policy.
Partial-Loss Deductible Reimbursement: If you are charged a partial-loss deductible during the policy term, the policy will reimburse your deductible up to $500. Unlimited use throughout the policy term.
Rental Vehicle Reimbursement: If loss of use coverage is exhausted under your primary insurance policy due to a delay in repairs or replacement of the vehicle, the policy will reimburse the additional cost of a rental vehicle up to $50 per day to a maximum of $2,500 per year.
Lost or Stolen Key Fob Protection: If you lose your key fob during the policy term, we will pay to replace it. Coverage is one time use per policy, up to $500.
Love cars? So do we. Here are some interesting facts related to vehicles in Canada just for you.
CBC news reported in December 2018 that car theft is up in Canada by 6% with some provinces effected more than others. And interestingly, the most stolen car is the Ford F-350 with 8 different versions in the top 10 stolen cars.
In 2017, 85,000 vehicles were reported as stolen in Canada. Stolen Canadian vehicles end up being smuggled into countries such as Hong Kong, Thailand, Vietnam, China, Belgium, Germany, and Italy.
It is estimated that there are 160,000 car accidents every year in Canada. Over $1 million worth of vehicle damage is caused by moose related car accidents each year.
A large portion of city budgets goes towards snow removal each year, but one Canadian city spends more than the others. Montreal has half the population of Toronto but ends up spending double (about $155 million) on snow removal each year.
Left or right?
Driving in Canada was mixed in the provinces with being left or right sided until 1947 when Newfoundland made the final switch to the right-hand side. The differences occurred because of having both the British (left) and French (right) influences. The right-hand side was seen as preferable because driving is on the right in the US and therefore the border changes would have become an issue if Canada continued to drive on the left.
Most popular vehicles
The best-selling vehicles in Canada in 2018 were the Ford F-series, Ram 1500 and Honda Civic. The Canadian vehicle market is leaning increasingly more towards SUVs and pick-up trucks, and small vehicles such as the Fiat 500 and Smart Car will soon be disappearing.
In 2016, 1.3 million vehicles were produced in Canada. Canada contributes 13% of all vehicles produced in North America and is the 10th leading vehicle producer in the world.
Quebec is the only province where it is legally mandatory to have winter tires between December 15th to March 15th. It isn’t legally mandatory across the entirety of British Columbia, but there are some places particularly in mountainous areas where winter tires are also required.
Although Canada is one of the coldest countries in the world, it is surprising that winter tires are not required by law. In Germany, the rules regarding winter tires have recently been tightened and Germans know that they should ideally have winter tires on from October to Easter. If they are caught without them and there is snow or ice, or if they are involved in an accident, they have to pay a special fine.
Traditionally, extended auto warranty was only available for purchase from the dealership. Products such as extended auto warranty are discussed particularly in the finance office once you have decided to go ahead and purchase your vehicle. However, how to purchase extended auto warranty has changed in Canada as Obvi has brought the process online, resulting in a fairer price for customers. Here we explain the differences between buying from the dealership and going direct online.
Buying from the dealership
There are several things to think about when being offered extended warranty at the dealership. This can be an expensive method of purchasing extended warranty coverage because of the layers of commissions built in. It is also important to consider who the actual warranty provider is. Is your dealership the one who will be approving any warranty claims? In almost all cases, it isn’t.
It might also be suggested in the finance office that extended warranty is rolled into your monthly payments. This can hide the total cost of the warranty and mean you are not paying a fair price. There is nothing wrong with paying in monthly installments, as long as you have clearly seen the total price first and can then decide if you want to pay it upfront or monthly. Without the total price, it can be confusing and unclear, and you could end up paying more than you expected.
Instead of going through the dealer, you can now go online direct with Obvi.ca.
Buying extended auto warranty online means several things: you can take time to do your research, you don’t have sales pressure because you can do it online from home, and you get a fairer price by cutting out multiple layers of sales commission. Obvi understands that consumers deserve a fair price, and they also deserve to understand exactly what they are paying for, which is why we strive to be transparent and have an easy-to-understand, simply worded policy.
How is buying online different?
Although you might be told otherwise at the dealership, buying online is not any different in terms of customer service. In fact, Obvi’s excellent customer service stands out as a cut above other providers — you can speak to an expert via our online chat, by giving us a call or sending us an email, whatever you prefer. By going online with Obvi, not only has how to purchase extended auto warranty improved, but you can also be reassured that we will be with you for the entire process, from purchase to potential claim.
If you have questions about how to purchase extended auto warranty online with Obvi, contact us or get an instant quote.
What is extended car warranty and what does it cover are some of the most common questions we are asked here at Obvi. Been given a detailed policy but still don’t know what the small print means? We’ve had the same experience. That’s why we decided to completely change the way that extended warranty and gap insurance were sold in Western Canada, making the process better for Canadian consumers.
At Obvi, we understand that it can be confusing to sift through pages and pages of policy information with complicated jargon, when all you really want is the facts written in the clearest possible way. That’s why Obvi has a no jargon policy written in simple terms, and an easy to understand exclusion list; if it’s not excluded, it’s included.
What is extended car warranty?
When you purchase a new vehicle, it will come with a manufacturer’s warranty which typically lasts for between 3-5 years. Extended car warranty is something you can choose whether to purchase or not, and can come in different forms, see previous blog explaining the differences.
The main reason why people buy extended warranty is so that they save money and don’t have to worry about sudden expensive car repairs. For some drivers, having large car repair bills can be too much of a strain on their finances. For others, they just want to save money and have peace of mind in knowing that they are covered.
Extended car warranty: what does it cover?
Depending on where you purchase your extended warranty from, the policy may slightly vary with what is included or excluded.
The main components that Obvi covers are;
Heating / Cooling
To find out more and see excluded components, check out our Warranty Brochure. We also explain in the brochure why certain components are excluded.
Obvi’s Extended Car Warranty
Why is Obvi’s extended car warranty the best option in Western Canada?
We cut out the middleman, meaning you save up to 70% compared to buying from the dealership
We keep everything simple and easy to understand
Our customer service is excellent – you can call us or chat with one of our live agents on our website
We are with you through the whole process, so if you have a claim, we will also handle your claims
There is no sales pressure – by going online, you can take your time and do your research. We won’t pressure you into making a purchase
Copyright 2020 Obvi Inc. Insurance policies are sold by Obvi Inc. Always refer to your insurance policy for information about your coverage, including limits, deductibles, and exclusions. In case of discrepancy, the insurance contract prevails over general information available on this site. Any policy related changes made on this site will not be effective until you receive confirmation.