Category

Car Ownership

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.

5 Tips For Trading In Or Privately Selling Your Vehicle

So, you’ve decided that, for one reason or another, you want to switch from your current car to a new one, either by trading it in to a dealership or by selling it privately.

What’s the next step you should take?

There are a few, actually! And they’re all important steps to take to ensure that the process goes smoothly and that you receive a fair deal.

Here now are Obvi’s Top 5 tips to know before selling your vehicle:

Make your vehicle look pretty

This is an obvious one, but it’s still worth mentioning. Make sure to give your vehicle a good cleaning — both inside and outside. Even though it doesn’t actually affect what the car is worth, it’s still a sign to potential buyers that it was well taken care of. If the outside of your car is covered in deep layers of dirt and there is garbage all over the floor on the inside then it’s going to be harder to convince anyone that you’ve taken the time and effort to give the vehicle routine check-ups and oil changes.

Research its value

Accurately determining a car’s value is no easy task. There are many different kinds of vehicles on the road, specific makes and models can have a variety of special features, and all vehicles lose value relative to how old they are and how many kilometres they have been driven. Just because you value your vehicle at a certain dollar figure in your mind doesn’t mean that the market of potential buyers is going to agree.

The “Price a Car” tool on the Autotrader website is a great way to determine your vehicle’s value, but it’s also worth taking the time to look online to see what other people are selling similar vehicles for to get a slightly better feel for the market. Both Autotrader and Kijiji Autos are good resources for that.

Get a CARFAX report

A lot of different things can happen to a vehicle that reduce its value, and not all of them are immediately noticeable. Unsurprisingly, this makes many dealerships and private buyers incredibly cautious and skeptical before agreeing to a deal, even if your car has never had any problems.

By getting a report from the trusted company CARFAX, you can prove to any would-be buyer the major history of your vehicle.

Have your documents ready

Not only does having your bill of sale and proof of insurance help prove that you’re not some sort of scammer, having receipts of all your oil changes and service appointments on hand to show a potential buyer increases the trust in both you and your car.

Shop (or sell) around

If you aren’t in any kind of immediate rush to make a decision, it’s worth putting in the time and effort to shop around (or, more accurately, sell around). The more potential buyers you find that are interested, the better your odds of finding a fair deal — or maybe even getting a better price than you initially expected.

What Is New Car Replacement Insurance, And How Does It Work?

car replacement warranty

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.

Obvi’s other products

Obvi also sells extended warranty online to customers in Western Canada. Contact us or visit our website at obvi.ca to find out more and get an instant quote.

Tips for protecting your car from being stolen or broken into

f350

Tips for protecting your car from being stolen or broken into

When I was a child growing up, I remember very clearly my parents taking every precaution they could to protect their car from being stolen. They would use a huge clunky steering wheel lock, take the radio out of the car and into the house, and open the glove box to show there was nothing in there. It was just part of their routine, but eventually over the years the safety routine has slowly diminished. Radios aren’t the valuable commodity they used to be in a car, and it is rare these days to see a visible lock across the steering wheel.

Having said that, they are still very aware that the car could be stolen and don’t leave anything inside it. Although they live in a tiny village in the countryside, they’ve had their windshield wipers taken a couple of times but luckily not the car itself. Family members in the center of a city went through such a bad patch that they even kept their car keys locked in their bedside table as car theft in the area was rife. My neighbors in Calgary in comparison aren’t very careful and said that back home in Manitoba, they permanently leave the keys in the ignition as they are so sure that their car is perfectly safe.

Whatever your safety routine is, it’s important to hear the news that car theft is up in Canada by 6% with some provinces a lot more affected than others. And interestingly, the most stolen car is the Ford F-350 with 8 different versions in the Top 10 stolen cars.

Did you worry about the loss of value on your car? Then New Vehicle Replacement Insurance could be for you. Check out more info here.

Here are our Top Tips for protecting your car:

  • Don’t leave anything out in your car

Not sunglasses, not a coat or jacket, not your Sat Nav cable – nothing! I’ve heard people say they can’t believe their car was broken into because all they left out was a pair of sunglasses…. Just don’t leave anything out.

  • Put your shopping out of sight

Ok, so sometimes you need to leave things like shopping in the car whilst you are out and about. Put it in the trunk and make sure it’s covered so you can’t see it. If thieves are looking for stuff to steal but can’t see anything, they will move on.

  • Make sure you lock your doors

It’s surprising how easy it is to get distracted and forget, so make an effort to check the doors are locked.

  • Leave your windows up

Whatever you do, don’t leave your windows open, even if it’s just a crack. It makes it an easy target to be stolen.

  • Choose wisely where you park your car

Park your car in a well-lit place, or ideally safely away in your garage. If you regularly park in the same spot for work, it might be worth changing it up as thieves look for a routine to minimize the risk of them getting caught.

  • Don’t leave your car running and go and do something

Even in Winter when you are warming the car up and de-icing, don’t leave the engine running and quickly go back into the house. Cars do get stolen this way! Between November and December 2017, Calgary Police said that 200 automobiles were stolen whilst idling.

Find out more about Obvi’s Vehicle Replacement Insurance and get a free quote.