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 technology’s 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 quotes and purchases 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 a 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 – it’s that simple! With personalized KM options, 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.