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About Obvi

Introducing Obvi’s New Coverage For Off-Warranty Vehicles

Since Obvi was founded, one of the biggest requirements for vehicles to be eligible for extended warranty was that they needed to have some comprehensive factory warranty remaining.

As of now, however, that requirement is a thing of the past. After months of hard work, Obvi is proud to announce the release of our brand-new off-warranty policy!

We listen closely to feedback from our customers, and we noticed the clear and consistent demand for this type of coverage. For all those customers who wanted to work with us before but were previously ineligible, we are thrilled to finally work with you now.

Some key points to know about our new plans include:

  • Most vehicle brands are covered
  • Vehicles must be 2011 models or newer and have fewer than 200,000 kilometers on their odometers to be eligible
  • Coverage is available to automobile owners who can conduct inspections in the areas of Calgary, Edmonton and the Lower Mainland of British Columbia
  • Price quotes are available prior to purchase. All quotes are free and the process only takes a few minutes. Give our Instant Quote system a try on our website
  • Vehicle inspections are required after receiving a quote and prior to purchasing a policy. Please visit our inspections page to learn more
  • Our plans are underwritten by an A-rated insurance company, so you’ll know that your policy will be secure for the entire term. Read our blog on this topic to learn more.

To learn more, please visit our website. If you prefer to direct your questions to a live agent, you can use our website’s chat system or schedule a phone call at a time that works for you.

What Should You Consider When Buying Car Replacement Insurance?

Automobile replacement insurance is a unique product. Vehicles depreciate over time, and few drivers can afford to buy a brand new automobile after suffering a write-off. The value of replacement insurance in the event of a total loss is undeniable.

New car replacement insurance isn’t free, however, and there are options about what kind of coverage to purchase. For many automobile owners, the goal is finding the best value for the price.

To help potential customers better understand this topic and avoid paying too much for your coverage, let’s take a look at your options available for car replacement from Obvi.

Annual policy from Obvi

This option allows you the flexibility of obtaining coverage year over year. You purchase one year of coverage at a time, and then at the end of the year you can choose to renew for another year or to let the coverage lapse.

The downside to this option, however, is that if you keep your coverage for 3, 4, 5, 6 or 7 years, the total that you will end up paying will be much higher than if you would have purchased a multiyear policy from the beginning. The upside: if you have a claim in Year 2, you would have paid much less for the policy by going year-to-year, and you get to pay monthly.

Multiyear policy from Obvi

These are easily the policies that offer the best value. By agreeing to a multiyear policy right at the start, you get a significant discount for the total cost of your premium. If you know right away that you want multiple years of coverage for your vehicle, this option is a no-brainer.

Replacement insurance from your existing auto insurer

More and more insurers are offering a replacement cost rider with your collision and comprehensive coverage. While adding this kind of coverage onto your existing primary insurance seems convenient, it comes at a high cost.

How? Premiums are set very low in the first year, to entice people to buy, but they increase significantly year over year. The cost of your policy for Year 5 will be a lot higher than the cost of your policy for Year 1.

So, why should someone buy a multiyear policy from an independent company instead of their existing insurance? Let’s have a look at what can happen if you don’t:

  1. Coverage is only eligible from existing insurer when vehicle is new, so if you switch insurance providers in Year 3 you could lose the replacement endorsement
  2. The premium charged for Year 3/4/5/6/7 is significantly higher than Year 1 or 2, and you have no way of knowing what it will look like
  3. What if your auto insurer non-renews your auto insurance or you find a better deal? A 3-year old vehicle might not be eligible for replacement when it is no longer new
  4. What if your auto insurance becomes increasingly expensive while you carry collision and replacement with the same carrier?

Visit Obvi’s page for New Car Replacement Insurance to learn more or request a quote.

Will Dealerships Honour An Obvi Warranty?

 

One of the questions that Obvi team members receive regularly goes something like this: “Will dealerships honour your warranties?”

This question has its roots in how the world of automobile extended warranties used to be.

For a long time, extended warranties could only be bought from dealerships or directly from manufacturers, and drivers would be restricted about where they could take their vehicles for claims. If you bought a Ford extended warranty you had to take your vehicle to a Ford service center, if you bought a Dodge extended warranty you had to take your vehicle to a Dodge service center, and so on.

To put that another way, a Ford dealership won’t honour a Dodge warranty, and vice versa.

Eventually, independent companies that also sold extended warranties entered the market, before the insurance industry ultimately took control. Insurance regulation was a huge turning point, as all shops — dealers included — are happy to accept payment from licensed, financially stable Canadian insurance companies.

Obvi gives you freedom about where to take your vehicle

We recognize that different drivers have different needs about where they service their vehicles. Some people like to take the vehicle back to the dealership where it was bought; some people have specific mom-and-pop shops that they have a long history with; some people like specialized garages for import cars; and some people just choose a place because the location or hours are convenient.

That’s why we want our customers to have choices about where to take their vehicles for servicing. As long as the destination is a licensed repair facility (sorry, we won’t pay your friend Bill for the repairs he does in his backyard), it’s fine by us.

Another big perk about our warranties: North America-wide coverage. Whether you’re driving away from home for work or making a road trip with your family, if a breakdown occurs we can still cover the cost of repairs.

How Obvi’s claims process works

We try to make our claims process as simple as possible for our customers.

First, notify your chosen shop that you have coverage through Obvi. Next, ask them to contact us directly with your information and the estimate. Finally, once the work has been approved and completed, Obvi will pay the shop directly.

That’s it! You don’t need to worry about paying for the repairs and then being saddled with those costs until we can reimburse you.

So, will dealerships honour our warranty? Yes!

The insurance industry pays billions of dollars in claims each year — there is no dealership or shop in the country that doesn’t want part of this. As long as dealerships are being paid for the work that they’re doing, they don’t really care where the money comes from. And to be honest, dealership service centers are great to work with. They know the brand, they know the parts, and they know how to get your vehicle fixed. If a dealer ever seems unsure about how our coverage works, simply tell them that you have a licensed Canadian insurance policy that will pay for the work on your behalf, and that they can contact us with any questions.

Visit our website to learn more about Obvi. You can also instantly receive a free Extended Warranty quote for your vehicle.

Frequently Asked Questions About Obvi Warranties

 

How does Obvi handle my claims? How do I make a claim?

In the event of a claim you can take your vehicle to any licensed repair facility in North America, including dealerships, and instruct them to forward the estimate to claims@obvi.ca. Once received, we will review the claim, approve it and pay the shop directly. It’s that easy! Don’t forget: any licensed repair facility is happy to accept payment from Obvi on your behalf!

Will Obvi provide a refund or incentive for not making a claim?

Obvi is proud to have reinvented vehicle warranties at a fair price without one of the most clever marketing tools ever used: the no-claims bonus.  The deck is stacked in favour of any provider making claim to a refund on insurance. It contradicts the fundamental principle of how insurance works — losses of the few paid by the many. If everyone received a refund for not filing a claim that would mean those who did make a claim would have paid more in premium than claims would ever hit. Read our blog here for a complete breakdown.

Where can I see what is covered? What do Obvi warranties cover?

The Obvi program offers full comprehensive coverage that is subject only to exclusions — this is how the original manufacturer’s warranty is usually issued. With Obvi you receive a full comprehensive policy with an easy-to-understand list of excluded components. Beyond that, you are covered for any failure that isn’t explicitly excluded, making this the broadest form of coverage you can buy. You can check out our warranty web page for more details about our program, including a simple PDF of some of the exclusions.

Is my Obvi warranty insured? How does that protect me?

Yes! All of our policies are insurance policies that are backed by a licensed and financially stable insurance company. When purchasing a warranty with a multi-year lifespan, the financial stability and ability to pay claims throughout the life of the policy is of utmost importance. With an “A”-rated Obvi warranty in hand, you can rest assured that your claims will be covered throughout the full term of the policy.

Does Obvi have a deductible?

Our warranty policies may have a deductible of $100 for any one warranty claim. Please refer to the terms and conditions in our policies for more information.

Why are cancellation and transfer options so important?

People’s needs change, and Obvi recognizes that. Any of the manufacturer-backed extended warranties are not insurance policies and are typically fully earned after 15-60 days. This is one of the biggest disadvantages of buying a manufacturer’s extension.

Why are Obvi warranties so much less than other options?

Obvi has streamlined the entire automobile warranty experience to make it easy and affordable. We sell our policies exclusively online, without any dealer markup or fees.  This allows us to offer our best price and coverage upfront.

When do Obvi policies expire?

We offer multi-year and kilometer options so its best to get a quote or speak with an agent to find out what will work for you. Most manufacturer warranties are for 3 years.

When it the best time to buy? Can I finance my warranty?

The best price possible is always when the vehicle is new, and you will pay more when the vehicle is about to come off warranty. We provide you with options about how to pay, including financing for up to 3 years. Please connect with an Obvi agent to learn more.

What Obvi Learned In 2019

2019 is nearly over, and with the end of the year (and the decade!) fast approaching now is a good time to think about the year that was and to take stock of what was learned.

For Obvi, 2019 was our second full calendar year in business, and we’re thrilled with how much our company grew and evolved over the past 12 months. We’re offering something new and exciting to the Western Canadian automobile insurance industry, and the positive response we see from our customers is incredible. Obvi was created to give drivers a fair alternative to the overpriced and underwhelming extended warranty policies offered by dealerships, so it fills us with joy to see how much money people are saving.

In order to be a successful company we need to be alert and aware about both the automobile industry and the insurance industry. We also want to pass our knowledge on to our customers. As such, here is a rundown of some of the most important things that we learned in 2019.

Popularity of New Car Replacement Insurance

Obvi added one new policy in 2019: New Car Replacement Insurance. We knew that the policy would be a popular addition, but we were surprised at just how popular. With the soaring cost of vehicles and drivers learning more about the costly effects of depreciation, we expect the demand for this kind of policy to keep increasing from here.

Insurance industry is preparing for big changes

Intact Financial Corp., Canada’s largest property and casualty insurer, is expecting a disruption to the industry in the near future. What that disruption might be is still up for speculation, but with rapid advancements in digital technology and the sheer power of huge tech companies such as Amazon and Google, there are a lot of possibilities.

Automakers selling their own insurance — a potential game-changer

A big change could be coming soon to the world of automobile insurance: manufacturers offering their own coverage. Both Porsche and Tesla have already announced plans to do so, and other companies could follow suit.

As reported by Design News in April:

“The combination of autonomous driving and data changes the whole game,” Brian Carlson, director of product line management for connectivity and security at NXP Semiconductors N.V., told Design News. “So we’re starting to see where automotive OEMs will take more responsibility for insurance.”

It’s not yet clear how that would happen. The two could work cooperatively, enabling automakers to sell name-brand insurance along with vehicles. Or automakers could decide to do it themselves, bankrolling and selling insurance in the same way they now provide new-car financing. Either way, experts believe it would be a natural product extension for the industry.

“If they want to get into insurance, they will, and they should,” noted Sam Tawfik, CEO of LMP Motors, an e-commerce platform for buying and renting vehicles. “They already have the installed base of distribution. And if vehicles become autonomous, they can just roll the insurance onto that.”

One thing remains clear: insurers are struggling to keep up with rising claims costs, and with the autonomous driving this will only get worse. The biggest challenge insurers — new and old — will face is that not all vehicles will be autonomous, and the claims costs from old vehicles hitting new will be staggering.

Insurance rate increases will squeeze Albertans

Knowing that Albertans were feeling the pinch from tough economic times, the previous NDP government instituted a five per cent cap on car insurance rates in 2017. But the new UCP government, elected in April, decided to let that cap expire, leading to insurance companies increasing their rates.

The effect on Alberta car owners? A jump in what they pay for insurance, potentially as high as 20 to 30 per cent. Visit our friends at Surex to compare auto insurance.

Drivers keeping their vehicles longer

The numbers are in: drivers are keeping their vehicles for longer, with average length of time that drivers keep a new vehicle being around 6 years.

One of the biggest reasons why is that vehicles are simply made better than they were before, making it take longer for one to become a “Beater.” Another reason is an increase in the popularity of financing. If you’re financing a vehicle for as many as 84 or 96 months, it only makes sense that you’ll hold on to the vehicle as opposed to trading it in.

Looking forward into 2020

It’s impossible to fully predict what the future will have in store, but there are a few trends that we predict will happen.

The biggest one: new technology is going to lead to new problems.

The more technologically advanced vehicles become, the more specialized knowledge is required to fix them. This is especially true for electronic components such as sensors, back-up cameras and entertainment displays.

With so many different things that can go wrong with vehicles, it’s now more important than ever to make sure that you’re protected from expensive repair bills. With an Obvi extended warranty you can get up to 8 years and 160,000 kilometres of comprehensive coverage, including complex electrical components. Visit our website to get a free instant quote or chat with a live agent, or schedule a phone call at a time that works for you.

What Are OEM Parts, And Why Are They Important?

 

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.

How Does Obvi’s Claim Process Work?

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

  1. 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.
  2. Have the shop contact us regarding the estimate to repair. We will need a copy of the estimate emailed to claims@obvi.ca. Most claims only take a few moments to approve.
  3. 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

  1. If something has happened to your vehicle and it has been written off by your auto insurer, contact us.
  2. We will request your claim information for processing.
  3. Once approved, payments will be settled promptly.

 

The Risks Of Buying Extended Car Warranties From Dealerships

car dealership risks

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.

Fast-talking, aggressive salespeople

According to a 2017 investigation by the Automobile Protection Association, the addition of extra charges by car dealerships was “rampant” in Calgary.

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.

Visit our Extended Car Warranty page to find out more of feel free to contact us any time if you have any questions.

 

INSTANT QUOTE

Obvi’s Top 5 Road Trips in Western Canada

obviroadtripObvi’s Top 5 Road Trips in Western Canada

As a Calgary based company, we love getting out of the city on road trips! When we’re not working hard you can often find our team in the mountains biking, hiking, or relaxing at one of the hot springs. Looking for some inspiration for your next road trip? Here are Obvi’s Top 5 Road Trips in Western Canada.

Icefields Parkway

The Icefields Parkway is considered one of the best drives in the world and connects Banff to Jasper. There are plenty of places to stop off on the way from lakes to glaciers and waterfalls. Our favorite things to see are turquoise Peyto Lake (you can get the best view from Bow Summit) and the glaciers at Columbia Icefields.

peyto lake

Peyto Lake

Sea to Sky Highway

Connecting Vancouver to Whistler, the Sea to Sky Highway is spectacular. Driving straight through takes about 1.5 – 2 hours, but there are plenty of awesome things to see and do on the way. One of the coolest things is the gondola connecting Whistler and Blackcomb Mountains. The route is 4.4km long and over 400m above the ground, and although it’s not guaranteed there are often sightings of numerous bears below you.

Vancouver Island

A trip to Vancouver wouldn’t be complete if you didn’t go to Vancouver Island, and a road trip is a brilliant way to explore and see what the island has to offer. For the most epic trip, spend a week or so on the island and follow the Heritage Discovery Circle Route on the East Coast from Victoria to Port Hardy. Explore everything in-between and with plenty of opportunities to enjoy nature and see wildlife, you’ll have a great time.

Trans-Canada Highway

The Trans-Canada Highway is a ridiculously long road running all the way across Canada, but our favorite part is between Lake Louise and Banff.  Coming from Calgary, we like to start in Banff and make our way slowly to Lake Louise, stopping off on the way to enjoy the scenery.

Once there, you can do a hike from Lake Louise to Lake Agnes Tea House (open from June to October) and enjoy the breath-taking view. Return back along the Trans-Canada highway and spend some time in Banff – maybe even head up Sulphur Mountain if you’re feeling adventurous or if you’re looking to chill, take a dip in the hot springs.

lake louise

Lake Louise

Drumheller and the Badlands

Drumheller is famous for the Royal Tyrell Museum of Paleontology, about 135km away from Calgary. The area around Drumheller, Dinosaur Provincial Park (a UNESCO World Heritage Site) is the richest place in the world in terms of dinosaur fossils, and this museum has a humongous collection. In fact, most of the 130,000+ fossils aren’t even on display and are behind the scenes, meaning that paleontologists from all over the world come to Drumheller to see specific fossils.

But another great thing about Drumheller is the Badlands; this spectacular area where the dinosaurs used to roam is an awesome destination when on a road trip. The hoodoos (a certain geological structure) seem unreal, and it’s an amazing place to explore and take photos.

Did we miss your favorite road trip spot? Send us a note and let us know where yours is!

Love going on road trips but worried about costs associated with your vehicle? Obvi has brought Extended Auto Warranty and GAP Insurance online in Western Canada, saving up to 70% compared to buying from the dealership and giving you better coverage. Get a quick online 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 read the easy-to-understand policy.

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