Category

GAP Insurance

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!

GAP Insurance and New Car Replacement Insurance 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.

 

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 and GAP insurance. 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 and GAP insurance online to customers in Western Canada. Contact us or visit our website at obvi.ca to find out more and get an instant quote.

Best GAP Insurance Canada

best GAP insurance canada

Best GAP Insurance Canada

You may have heard of products such as GAP insurance or extended auto warranty the last time you purchased a vehicle or insurance. However, if you don’t deal with them frequently it can be confusing understanding how the coverage works and what options are available.

GAP (short for guaranteed asset protection) insurance pays the difference between your remaining car loan balance and the settlement amount (the “gap”) from your auto insurance provider if your vehicle is considered a write off. Long-term loans, elevated interest rates, high vehicle prices, and negative equity rollovers mean most vehicle owners carry a loan much higher than the value of their car, truck, or SUV.

GAP insurance is often sold at the car dealership when you are purchasing a vehicle. You can make a one-off payment or it is more likely that you are encouraged to roll GAP insurance into your monthly payments. Obvi.ca has made GAP insurance available for online purchase in Western Canada, which is why we think Obvi has the best GAP insurance in Canada.

What are some negatives of how GAP insurance is traditionally sold?

Confusing policies – Some policies are difficult to read, with deliberately complicated terminology, misleading marketing, and complicated clauses. Obvi has tried hard to create easy-to-understand policies written in simple English so you aren’t left confused.

High price – Buying from the dealership can be expensive. Obvi cuts out the middleman meaning no dealer commission. Going direct online with Obvi also means you can avoid the difficult sales process. Obvi policies are priced fairly, and you save money.

Rolling into monthly payments – there is nothing wrong with paying monthly (Obvi now offers a 36 month payment plan). However, if you are encouraged to roll gap insurance into your monthly vehicle payments and are NOT given the total cost, then you can end up paying much more than you first realized. Obvi has simple and transparent prices so you can always see the total cost.

Obvi – the best GAP insurance in Canada

Obvi is disrupting the market in Canada by bringing GAP insurance online and in doing so, saving Canadians money. Why is going online with Obvi good for consumers?

  • Purchasing online rather than at the dealership means you can take your time to research and think about your purchase. There is also no sales pressure online so you don’t feel pushed into a decision.
  • You’re busy, why would you want to spend time calling people for quotes, or even going in person to an office? Everything can be done online in minutes, and if you have questions, our live agents are there to help.
  • By going direct, the extra layers of sales commissions can be removed saving you money.
  • With going online, you can review the reputation of the company issuing the policy.

Find out more about Obvi’s GAP insurance and get a free quote.

Can I cancel Gap Insurance from the dealership?

Can I cancel gap insurance from the dealership?

You bought a car from the dealership – congratulations! The whole process can be draining and take a long time, especially when you have to sit through sales pitches for add-on products. Ended up purchasing an insurance product with a deal you realized is really expensive? No worries, in some cases you can cancel gap insurance from the dealership.

3rd Party Policies

If you have purchased a 3rd party policy, you should be able to cancel your Gap Insurance policy at any time at a pro-rata rate. What exactly does this mean? It means you get a refund for the unused portion of the policy – but when it comes to cancelling “the sooner the better” is true .

Why Gap Insurance with Obvi is different

For more information about Gap Insurance, read our explainer blog here.

Gap Insurance is an important insurance policy, but you don’t deserve to be paying thousands for it. Obvi is the only fully online solution in Western Canada, meaning that we cut out the middleman saving you money. By being online, it also means that you don’t have sales or time pressure and can purchase when you are ready and have conducted as much research of your own as you like.

Why would I want Gap Insurance?

CBC News reported that in 2018, 55 % of all new car loans were for at least 84 months (7 years). Unfortunately, people forget that having a loan over a long number of years does come with risks. Here are some points to think about;

  • “I’m a sensible driver, I’m not going to crash my car…” Hopefully you won’t ever be in an accident, but what if it is stolen? Or there is a fire? Not everything is always in our control, so if you have a long term loan, you want to have reassurance that you will be financially covered in case something happens.
  • The worst case; you don’t want to be left with a loan and no car- this can happen, and that’s why you need protection.

GAP Insurance is there to help protect your finances and give you peace of mind. We sometimes forget the financial risks and ties that are associated with our vehicles, and we also often forget that some events are outside our control such as theft or accidents. With Obvi you can purchase GAP Insurance online. Find out more about GAP coverage and get a free quote now.

Quotes for GAP Insurance

Where do you go to get quotes for GAP Insurance?

Traditionally, GAP Insurance was only sold through the dealer when purchasing a vehicle, so this is also where you would get quotes for GAP Insurance. However, this is expensive, the dealer is often not knowledgeable about the product and they are not the ones who would handle your claim. There also tends to be a sales pressure when buying insurance products from the dealer as they make a hefty commission from selling a 3rd party warranty (hence why buying from the dealer is expensive).

Obvi has completely changed GAP Insurance; by bringing the sales process online and cutting out the middleman, consumers can save up to 70%, there is no sales pressure and confusing technical jargon and consumers get a better product. Obvi has made the process of getting quotes for GAP Insurance quick & easy – you can get a quote in under 30 seconds!

Can you get quotes for GAP Insurance on used vehicles? Absolutely! It doesn’t matter whether your vehicle is new or used, as long as you meet the requirements;

  • You have to have a long-term loan (4 years / 48 months up to 7 years / 84 months) and a relatively new vehicle (up to 4 years old).
  • Both new and used vehicle purchases are eligible
  • Must be in British Columbia, Alberta, Saskatchewan, or Manitoba and recently signed a new auto loan or lease between $20,000 – $100,000

Getting quotes for GAP Insurance is so easy with Obvi. Whether you are at work, home or on-the-go, you can quickly get a quote on your phone without hassle. You can take your time to research and understand what the policy covers, and whether this is something for you. There is also no time pressure meaning you don’t have to make a pressured decision. Come back whenever you are ready, and we are here to help you if necessary.

How is GAP Insurance with Obvi different from buying at the dealership? Here is a handy comparison:

Dealer Obvi
Quick 30 seconds quote X
No confusing jargon X
No commission fee X
Take your time to research X
No sales pressure X
Simple list of exclusions X

The way that GAP Insurance and Extended Auto Warranty is being sold in Canada is changing. Consumers no longer have to go through the dealer to get a quote for GAP Insurance, or even make a purchase. Obvi offers GAP Insurance at a fair price by simplifying the process and cutting out the middleman. Canadians should be able to go online for GAP Insurance at their leisure and purchase an important insurance product at an affordable price.

GAP Insurance On Cars

What is GAP Insurance on cars? Obvi has put together a handy guide to fully explain everything.

GAP Insurance definition: Guaranteed Auto (or Asset) Protection is a type of car insurance which protects your finances when a loan is taken out to pay for your car.

But what does GAP Insurance on cars really mean?
Take this scenario; you were involved in an accident and you totaled your car. Your insurance company determines that the car is worth $14,000. This is less than you imagined but you bought the car new so it depreciated in value over time. You still owe $18,000 because you took out a long term loan over 7 years, meaning
$18,000          – $14,000 = $4,000

What you owe – car worth = Amount you still owe
GAP Insurance protects you and will cover this $4,000 – this is the “GAP”. Obvi protects you when you take out a loan to finance your car with GAP Insurance.

What do I need to know?

  • GAP Insurance on cars is not just available if you purchased your vehicle, it also includes leased vehicles.
  • Traditionally, GAP Insurance was only sold through the dealer when purchasing a vehicle. However, this was expensive, the dealer was often not knowledgeable about the product and they were not the ones who would handle your claim.
  • Obvi has completely changed GAP Insurance on cars; by bringing the sales process online and cutting out the middleman, consumers can save up to 70%, there is no sales pressure and confusing technical jargon and consumers get a better product.

Why do I need it?

Both leasing a car and taking out a long-term loan are popular options in Canada. According to Automotive News Canada, around 25% of new cars are leased and CBC News reported that in 2018, 55 % of all new car loans were for at least 84 months (7 years). Unfortunately, people forget that leasing and having a loan over a long number of years does come with risks. Here are some points to think about;

  • “I’m a sensible driver, I’m not going to crash my car…” Hopefully you won’t ever be in an accident, but what if it is stolen? Or there is a fire? Not everything is always in our control, so if you have a long term loan, you want to have reassurance that you will be financially covered in case something happens.
  • The worst case; you don’t want to be left with a loan and no car- this can happen, and that’s why you need protection.

GAP Insurance on cars is there to help protect your finances and give you peace of mind. We sometimes forget the financial risks and ties that are associated with our vehicles, and we also often forget that some events are outside our control such as theft or accidents. With Obvi you can purchase GAP Insurance online. Find out more about GAP coverage and get a free quote now.

GAP Insurance On Lease

gap insurance on lease

Can you get GAP insurance on a lease car?

Guaranteed Auto (or Asset) Protection, GAP insurance, is a type of car insurance which protects your finances when a loan is taken out to pay for your car. Many people think that they cannot get gap insurance on lease cars but this is not true. With Obvi, getting gap insurance on lease cars is definitely an option.

Do you pay more for Gap insurance when the vehicle is on lease?
No! The amount you pay for Gap insurance does not depend on whether the car is on lease or not.

Leasing a car explained

Leasing a car is not the same as financing a car. When you lease a car and your term comes to an end, you either return the car or you can choose to buy the car. Both leasing a car and taking out a long-term loan are popular options in Canada. According to Automotive News Canada, around 25% of new cars are leased.

Why would I need GAP insurance on a lease car?

When leasing a car, you do not actually own the car and therefore you are responsible for returning the car back to the owner once the term is up. If you are in an accident, or the vehicle is stolen, the car insurance company will pay out the same amount as it would cost to buy that used car from a dealer. This is therefore much less than the new price due to depreciation, meaning that it wouldn’t cover the whole amount you would need to pay to end your leasing contract. This is why GAP insurance on lease cars exist, as it covers this shortfall.

Risks of a leased car

Unfortunately, people forget that both leasing a car and taking out a long-term loan over a number of years does come with risks. Here are some useful points that we often go over when we explain what’s GAP Insurance.

  • Accidents happen – Hopefully you won’t ever be in an accident, but what if it is stolen? Or there is a fire? Not everything is always in our control, so if you have a lease, you want to have reassurance that you will be financially covered in case something happens.
  • The worst case; you don’t want to be left with paying a lease and no car- this can happen, and that’s why you need protection. If you are in an accident, and the car needs to have repairs, your payments will still continue. If your car is totaled in an accident, you will also continue to make payments until the claim amount is settled.

Yes, you can get GAP insurance on a lease car, and yes the best deal is online with Obvi without paying a huge commission fee. Find out more about GAP insurance, speak with one of our live chat experts, or get a quick and easy quote now.

Can I buy GAP Insurance after I buy a car? 

Can I buy GAP Insurance after I buy a car? 

Customers frequently have the idea that GAP insurance can only be purchased at the time of buying your vehicle. The reason they think this is probably due to the traditional method of selling GAP Insurance in Canada, which occurs when purchasing a vehicle from the dealership. Once you are filling out paperwork in the finance office, it is common for the salesmen to try and sell you insurance products such as GAP Insurance. Unfortunately, some salesmen are quite persistent with pushing these insurance products, as they take up to 75% commission.

It could be that from the sales pitch, customers think that it is only possible to buy GAP Insurance whilst they are purchasing their car, but this is not true. It is also not the case that GAP Insurance is only sold at the dealership, as Obvi has brought GAP Insurance fully online in Western Canada.

Can I buy GAP Insurance after I buy a car? Yes, if you meet these important criteria.
GAP protection insurance is ideal for those who have a long-term loan (4 years / 48 months up to 7 years / 84 months) and a relatively new vehicle (up to 4 years old). With Obvi’s GAP Insurance, both new and used vehicle purchases are eligible, and almost anyone in British Columbia, Alberta, Saskatchewan, or Manitoba who has recently signed a new auto loan or lease between $20,000 – $100,000 qualifies.

What are the advantages of buying GAP Insurance online?
1) Time – buying at the dealership means that you can’t take your time, do your research and understand what you are being offered, and also what other options you have. With going online, you can take your time to look at as much information as you want
2) Money – going online means that you cut out the middleman and don’t pay up to 75% commission (which is why buying at the dealership is so expensive). You get the fair price you deserve
3) Pressure – there’s no pressure to buy! We won’t push you, but our experienced Insurance Experts are at the end of a phone or available for Live Chat if you need them
4) And many more! In fact, check out our blog post here to fully understand why buying insurance online in Canada is the way forward

To find out more, check out our GAP Insurance page and get a quick and easy online quote.

What we learned in 2018

What we learned in 2018

As 2018 has ended, Obvi enters 2019 with an exciting milestone – we now help Canadians save over $1,000,000 each month by going online for Extended Auto Warranty and GAP Insurance.  As we prepared last year to launch a game changing platform to deliver comprehensive coverage at a fair price, we knew it wouldn’t be easy given some of the stigma facing the industry from decades of poor contracts and sales practices. Whilst looking forward in 2019, we also wanted to share the most talked about changes we implemented in 2018:

Value of KMs.  So many Extended Warranties have short term options, but this fails to recognize that you are investing in the future of your vehicle. With coverage for up to 8 years and a transfer clause, Obvi recognizes the investment made in your vehicle. Even if you expect to sell or trade your vehicle after 5 years, an 8 year policy drastically increases the value of your vehicle.  Without the KMs, the value of a warranty diminishes greatly.

The actual role of an auto dealer.  The role of the dealer is to sell another insurance providers’ Extended Warranty and GAP Insurance products, which are probably the only insurance products today that allow for a point of sale commission of 2 or 3 times the actual premium – it only makes sense to cut out the middleman to deliver customers fair pricing.

Realtime advice that counts. It is important for the team at Obvi that we can communicate instantly through our instant chat system to answer questions and service our customers. What separates Obvi’s advice is that you are speaking with licensed insurance advisors from the same office that will see you through a claim.  This service model creates a culture that not only celebrates new customers but those same customers who are satisfied with a claim.

Reviews. The reality is that insurance, or any financial product for that matter, isn’t something customers like to review or blog about.  Launching a new brand with a product that might not be called on for many years makes it even more interesting.  Our mission is simple – create a trusted and transparent brand that’s focused on bringing value and a better experience to customers. We see it as important to stay engaged and present on social media, Google, and places like the Better Business Bureau to grow trust and allow customers to see how we are doing.

Warranty as an Insurance Policy? Most Canadians don’t associate vehicle warranty as an insurance policy, but it is a requirement in most provinces today. The insurance industry is highly regulated to ensure that customers are treated fairly – especially when it comes to claims.

We live in an online world. Everything we do has an online option so why doesn’t this come to mind with insurance?  The Insurance industry is caught between legacy players fighting to hang on and innovators like Obvi creating real time solutions for Canadians. Major banks in Canada simply embraced and promoted the benefits of technology, where as the Insurance industry hasn’t been so ready to change.

It was recently reported that residents of British Columbia could save $434,000,000 if ICBC could create an online solution – will they innovate and find a way to pass along the savings? We hope so, just as we are doing with our specialty products.

What happens if you total a financed car without insurance

What happens if you total a financed car without insurance

It’s becoming increasingly popular in Canada to take out a long-term loan in order to finance a new car. According to CBC News, at one point earlier this year, 55 % of all new car loans were for at least 84 months (7 years). Unfortunately, people forget that having a loan over a long number of years does come with risks. One of the major risks is what happens if you total your car.

Let’s imagine this scenario. You took out a loan of $25,000 to pay for your new car. You’re in an accident and your car is totaled. Your insurance company determines that the car is worth $17,000. This is less than you imagined but you bought the car new so it depreciated quickly in value over time.

The insurance company pays the bank $17,000, and you still owe $8,000. This is what happens if you total a financed car without insurance.

However, Obvi offers a solution: GAP Insurance. Guaranteed Auto (or Asset) Protection is a type of car insurance which protects your finances when a loan is taken out to pay for your car. Going back to example of owing $8,000, this is what GAP Insurance covers.

Why do I need it?

Here are some useful points that we often go over when we explain what’s GAP Insurance.

  • “I’m a sensible driver, I’m not going to crash my car…” Hopefully you won’t ever be in an accident, but what if it is stolen? Or there is a fire? Not everything is always in our control, so if you have a long term loan, you want to have reassurance that you will be financially covered in case something happens.
  • The worst case; you don’t want to be left with a loan and no car- this can happen, and that’s why you need protection.

Summary:
What happens if you total a financed car without insurance is that you could be left with a large sum you have to pay. GAP Insurance covers the GAP between the value of the car and the amount you owe in case something happens such as accident or theft. With Obvi you can purchase GAP Insurance online. Find out more and get a free quote now.