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GAP Insurance

What’s GAP Insurance?

What’s GAP Insurance?

Although some people will have heard of GAP Insurance, others won’t have, and will have found some of the explanations on the Internet a bit confusing and not very helpful. I’ve created an article with everything you need to know about what GAP Insurance is.

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.

What’s GAP Insurance: Let’s break it down

That’s the definition, but what does it actually mean? Imagine that you were involved in an accident and you totaled your car. Your insurance company determines that the car is worth $13,000. This is less than you imagined but you bought the car new so it depreciated in value over time. You still owe $17,000 because you took out a long term loan over 7 years, meaning
$17,000          – $13,000 = $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.

Why do I need it?

Long term loans are becoming more popular in Canada. 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. 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:
GAP Insurance is for when you buy a car and you have a loan to finance your purchase. It 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.

Buying Insurance Online

6 Reasons Why Canadians Should be Buying Insurance Online

Almost everything these days has moved online, some things faster than others. There is no doubt there are many advantages to moving to the online world be it in banking, retail sales, social networking, news and just about any other thing in our lives. But some things have been much slower to move online than others, which brings us to insurance. Most of us are still buying our insurance like it’s 1999. Lately there has been a big push for home and auto online but what about all the other products out there? Most of the European insurance industry is light years ahead of Canada as less than 5% of insurance is currently transacted online in Canada.

Going online is the best

Traditional insurance sales will try to scare you away from online by pushing that you don’t really know what you are getting, your policy isn’t custom tailored to you, and you don’t get the benefits of an expert that knows the product. But are you really getting that now and will you really be losing any of that? Here’s why you should be buying insurance online.

Reason #1- Control

With online insurance you can shop where you like, when you like and can better pick and choose your coverage. You don’t have to rely on the traditional channels that sell one or two companies’ products. It’s also easy to check a company’s reputation and level of service. You can also easily compare what different companies are providing.

Reason # 2- Your Time

In our fast-paced world, you don’t have time to shop around for your insurance using the old methods of calling and asking for quotes, waiting for a response, and having to decipher what coverage you are getting. You can also shop on your own time when its convenient for you rather than a company’s office hours.

Reason # 3- Your Money

Buying insurance is often a necessity for a variety of reasons but why pay so much more for something because of outdated processes? Technology has drastically cut the amount of hands that are needed to get you the best possible coverage. By going direct, the extra commissions can be removed saving you money.

Reason # 4- Less paperwork

Processes can be streamlined, and information kept digitally. Ever want to know what’s covered on your policy and tried to find that renewal document you received last year? Online forms are interactive and can help eliminate unnecessary lines of questioning. You can upload supporting documents without the need to photocopy, courier or mail.

Reason #5- Transparency

An online policy will allow you to see and understand all features of what you are getting. In addition you can review the reputation of the company issuing the policy. Always remember to carefully review policies and if something isn’t clear engage the chat bot who is a live insurance agent.

Reason # 6 Easy access to complete policy details

A good online broker will make it easy to connect and answer questions and provide a level of advisory to complete a policy purchase. When going through the quote process, you should be able to carefully review what coverage you are getting and do it when its convenient for you. Again, always remember to carefully review policies and if something isn’t clear contact the company and ask.

So there you have it; Canadians should be buying insurance online. It’s simple, convenient for you and can save you a lot of money. Get started today with a quote from Obvi.

How Does GAP Insurance Work?

How Does GAP Insurance Work?

 

How does GAP Insurance work?  As a relatively new insurance product to most people, many often ask this question. First, one of biggest downsides to purchasing a new vehicle is depreciation. Research suggests the average vehicle depreciates by 11% the minute you drive off the lot and an additional 14% by the end of the first year.  So how does that compare to your loan balance?  When you factor in long term loans, low to no down payments, and all the dealer’s fees and interest loaded into the loan, you can owe significantly more than your vehicle is worth.

So, what happens if your vehicle is a total loss before the loan obligations are complete? The amount your car insurance provider pays on your totaled car, SUV, or truck has nothing to do with your loan balance.  They will pay you a predetermined book value and you will be responsible for the remaining loan balance.

How GAP insurance works is by paying you the difference between your insurer’s settlement and your remaining loan balance. It is an add-on car insurance coverage that can help vehicle owners cover the “gap” between the amount they owe on their car and the car’s actual cash value in the event of fire, theft, or accident. If you’re financing a vehicle for a dollar amount that’s larger than what the vehicle is worth, GAP insurance can be a very good idea to protect yourself financially.

Obvi GAP insurance allows you to finance your vehicle with peace of mind knowing that your loan obligations are covered in the event of a total loss. It pays the difference between your insurer’s settlement and your loan balance, up to a maximum of $40,000. Get a free instant quote today and protect yourself against financial hardship tomorrow.

How Obvi Inc. changed extended warranties for good!

For years Consumer report bulletins have outlined the inherent conflict, the significant profit centre, and product challenges associated with extended warranties. But the biggest hurdle to change has been technologies long overdue entrance into the insurance market. Insurtech, the label for technology innovation that is changing the insurance industry, realized over two billion dollars of investment in 2017 and has opened the door for innovators like Obvi to radically change the warranty market and reach customers across Western Canada overnight. The Obvi team has implemented leading technology that offers instant online quote and purchase and partnered with an A rated established insurance company to solidify their innovative business platform with leading coverage.

The high-level historical evolution of insurance looks like this:

  • Basic fire policy, coverage for basically one type of peril
  • Multi-peril policies, Fire, windstorm, hail, lightning etc…
  • Broad form all risk insurance, meaning no specific perils only a list of exclusions.

An all-risk policy covers everything except what is specifically excluded in the policy. While most consumers are trained to ask “what is covered”, Obvi has taken the approach of- It’s simple, here is what we don’t cover!

In the event of named component policy claim (which is what many warranty providers use), the burden rests with the client to show that the component that failed was included in the policy and this allows the warranty provider to find additional avenues to decline elements or parts of the loss. Here is an example from a consumer report:

Client has claim denied for the running board motor that failed on the basis that while running boards are listed as covered, there is no coverage for running board motors.

With an exclusion-only policy the warranty provider would have to show that the policy clearly excluded the component in question otherwise it is covered – its that simple! With a standardized 7 year/175,000 KM warranty term, instant quote and buy, leading coverage, and pricing that makes sense it is safe to say that yes – automotive warranty has changed for the good!  Find out more and get a free quote now.