Aftermarket Car Warranty
What does an aftermarket car warranty mean?
The term aftermarket car warranty is an ineffective association of terms frequented by the automotive industry. When you hear aftermarket, you are likely to associate it with vehicle parts or accessories and might question the reliability. Many of the automotive dealers will refer to extended warranties sold outside of their office as aftermarket in an effort to leverage the reliability concern ingrained in Canadians. The manufacturer’s warranty will typically last between 3-5 years depending on the make and model vehicle you have, and you have options to extend. The term aftermarket is misleading as you must purchase from a third-party insurance company or service contract provider. If you want to buy an extended car warranty, you have two options;
- Manufacturer’s Extended Warranty Contract (Service Contract)
- Insurance Policy
1) Manufacturer’s Extended Warranty Contract (Service Contract)
Most commonly sold at the point of a new vehicle sale from a dealer who represents the manufacturer. There is no standard format, wording or regulatory framework around this method of extended warranty. Most importantly, there is no monitoring of the financial stability or ability to pay the claims and no regulatory on claims handling. An example of a company that sold Service Contracts is Sears – find out more in our blog about contracts vs insurance policies.
2) Insurance Policies – Extended Warranty
Consumers have the option of purchasing an insurance policy to extend the warranty of their vehicle. What many Canadians don’t realize is that they can do this all online and avoid the significant dealer fees. In fact, all dealers offer an insurance policy option to their customers and they are well accustomed to working with third-party insurers with claims.
With the help of Obvi Inc, this can be done without paying dealership commission, which is how you save money.
Online with Obvi
Obvi is disrupting the way that Extended Warranty is being sold in Western Canada. Instead of having to buy from the dealer, Obvi gives you the option of buying online. You can do everything on your phone from getting an Instant Quote to purchasing Obvi’s Extended Auto Warranty.
Why is Obvi better?
There are many reasons why Obvi is better;
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) Financing – you can still pay monthly for your warranty at a reasonable rate.
And many reasons more! In fact, check out our blog post to fully understand why buying insurance online in Canada is the way forward.