mechanical breakdown coverage for olive your adventures

olive: protecting the bits that keep your car moving!

coverage that keeps up

Cars were meant to enhance your freedom, not limit your choices. But recently, that freedom has become ridiculously complex. Your new car can have up to 30,000 parts, all controlled by a brain more sophisticated than the system that put astronauts on the moon. These intricate and expensive machines need coverage that keeps up with them.

olive is here to help: preventing a breakdown from becoming a meltdown. olive coverage protects every single lubricated part of your engine and transmission, electrical components, AC systems, even your instrument cluster. At a fraction of the cost of a major repair, olive’s bite-sized payment increments help get you out of the shop and back on the road. We’re on a mission to give peace of mind back to vehicle ownership, one driver at a time.

Currently, over 64 million Americans can’t afford the cost of a basic car repair. And, it’s no wonder. Every year the cost of vehicle repairs continues to climb as vehicle complexity skyrockets. Annually, auto repairs end up costing drivers 69-billion-dollars (and that’s just in the US), with the average cost of a single repair ranging from $500 to $600 dollars. Sound steep? It is. A study by Ally Financial showed that those, ages 18-34 paid an average of $2,334 in vehicle maintenance and repairs over five years of vehicle ownership. And that’s just the average. Many car owners paid more!

a costly proposition

To give the appearance of mitigating the cost of vehicle repairs, dealers offer extended warranties for their new and used cars. In the past, you’d be given one chance to purchase an extended auto warranty for your new car: at the time of purchase. No matter how much research you could do on typical repairs, and “predicted reliability” of the vehicle, at the end of the day the word “predicted” sits like a Gollum on your shoulder. Should you pony-up and spend the extra money for that extra bit of vehicular peace of mind, or do you blindly trust in the reliability of the brand? Well, knowing how costly repairs can be, let’s say that you chose to purchase the extra coverage. It’s a solid choice, but here’s the thing, oftentimes, an extended car warranty will be “rolled” into a new vehicle’s cost.

It sounds great, but if you’re paying $30 a month on a 68-month loan (the current loan-length average), that extended warranty will bump the price of your vehicle by $2,040. Not only that, but now you’re paying interest on that extra $2,040. That extended auto warranty ends up costing you over a hundred dollars in interest. olive isn’t okay with that. olive saves you money, not only on repairs, but in interest as well.

olive loves second chances

To add to all that savings goodness, olive takes the stress away from the rushed decisions that are often part and parcel when purchasing a vehicle. After a long afternoon of negotiating and signing papers, let’s say you passed on the dealership’s extended car warranty. On your drive home you get a knot in your stomach. You can’t shake the overwhelming sense of regret you have for not paying for extra coverage.

olive can give you your sleep back. With a few simple clicks you can pick your amount of coverage and your deductible. Suddenly you’ve got coverage that exceeds your new car warranty and the extended warranty you passed on. It’s nice to know that sometimes life gives you second chances.

Another great thing about an olive extended warranty is that it’s transferrable. Let’s say that you buy a brand new vehicle tomorrow. Usually the auto warranty included at purchase will cover large, low probability repairs like engine and transmission failure for roughly three years. But let’s say that after those three years you want to gift your car to your daughter. You want her to have something safe and reliable, but the new car warranty has expired, and you don’t want your daughter to have to foot the bill when the car needs a repair. In typical frictionless olive style, you can open a plan with us and we will act as an extended car warranty for your vehicle for years to come!

go olive the places!

olive understands that your car is not just another purchase. It’s the second biggest financial decision you’ll make. Vehicles are places where memories are made. Your kids may remember how amazing the trip to the Grand Canyon was and how small it made them feel, but your most significant memory might have been the “check engine light” that decided to illuminate itself half-way through the Mojave desert. Cactus is pretty but have a breakdown next to a family of them is not. That’s not the time to be racking your brain as you try to remember if your vehicle’s extended warranty expired last month or next month. olive goes with you to a certified mechanic as he diagnoses that pesky check engine light.

With coverage blanketing the continental United States, now might be a good time to think about going to watch a rocket launch at the Kennedy Space center, making sandcastles at Ruby Beach, or finally eating at Franklin’s BBQ. Heat is hard on roadtripper and car alike. Taking a quick plunge at the Hamilton Pool in Texas might take the edge off, but what about your car? At olive we understand that even if you have the best extended warranty, basic car maintenance is part of ownership. A well-maintained vehicle is a happy one, and happy vehicles spend more time avoiding breakdowns and eating up the highway on their way to adventure!

who made the promise?

Let’s talk about used cars, and particularly what exactly an extended warranty for used cars is. Last year, over 40 million used cars and trucks were sold in the US alone. Many dealers try to include an extended warranty for used cars sold, but are all extended warranties the same? In a word: no. Think about a promise, it’s only as good as the person making it. When my three-year-old niece promised me she’d just washed her hands, I didn’t believe her for a second. Firstly, her hands were bone dry, and secondly, I knew that she couldn’t reach the sink.

It’s the same with an extended warranty for used cars. Established dealerships and corner lot pop ups oftentimes advertise using the same verbiage, “included extended warranty for used cars” or “never pay for repairs.” But who is really making the promise?

An extended warranty AKA a Vehicle Service Contract has to be financially backed. Someone has to pay for the repairs. Oftentimes third party extended warranties are backed by smaller, less-stable financial institutions that have a risk of collapsing. Just like my niece’s promises, the proof is in the pudding.

An extended warranty for used cars might seem like a no-brainer: the car is used, so something could go wrong. But if the extended warranty for used cars doesn’t have anyone backing them, it’s a check without a routing number: just a pretty piece of paper. Money spent on an extended warranty for used car might be better utilized somewhere else… somewhere like olive.

olive is backed by QBE Insurance, a mainstay in insurance, founded in January 1886. They’ve secured a consistent “A+” rating from A.M. Best and an “A” rating from Standard & Poor. We only partner with the best so our coverage can be the same: the best. An olive plan isn’t an extended warranty for used cars, it’s frictionless coverage backed by an insurance mainstay.

the true cost of ownership

Over five years of car ownership, the average cost for repairs/breakdowns is $1,986. That’s almost $2,000 every five years, and that number jumps significantly if you’re between the ages of 18 and 34. Cost for repairs ends up at $2,334 per vehicle on average. Average meaning that many new and used car owners spent more than that.

Many of these young car owners feel overwhelmed during their vehicle purchasing experience, oftentimes focusing more on the vehicle they want rather than the true cost of ownership. Typically, an extended auto warranty is only offered at the time of the vehicle’s purchase, and reasoning that they’d rather pocket the extra money, many young buyers pass on the extended auto warranty. By doing so, they put themselves at risk. Short gain may very well end up as long-term loss.

Car repairs are pricier than they’ve ever been, and vehicle complexity is higher than it has ever been in history. Many drivers are a breakdown away from taking a serious financial hit. But it doesn’t have to be like that, olive’s plans act like an extended auto warranty, paying for serious mechanical repairs as they come up. How many young car buyers could benefit by knowing that an extended car warranty is just a click away with olive?

it all adds up

When talking about the cost-effectiveness of an extended auto warranty, it is necessary to weigh all the variables. When vehicles need repairs, you first need to diagnose the problem. If you have a certified and trusted mechanic that accepts your current extended auto warranty policy, this step shouldn’t be that daunting. But, if you don’t, this can be a pricey ordeal. Remember that before anything can get fixed, a mechanic needs to figure out why the vehicle had a breakdown in the first place.

Mechanics typically charge diagnostic time, and you can expect to pay anywhere from $70 to $125 per hour. That’s right: per hour.

After the diagnostic time comes the verdict. Usually, a written quote comes back with sentences like “recommend new power steering pump” or “found drip under front cover, recommend replacing front cover” written on them. And usually, there will be an estimate somewhere on the page. The average cost of a power steering pump is right around $200. So, you see the $200 plus 2.5 hours of labor for the install and you figure you’re out about $400.00 which is a lot of money… not so fast.

Oftentimes an extended car warranty will cover the core part, but it’ll exclude coverage on peripheral parts. Taking the power steering pump as the example, an extended car warranty might state “covers power steering pump” but what it doesn’t include are the vital metal hoses that snake their way around the engine compartment. An extended warranty might short you an additional few hundred dollars worth of hoses. Also rarely covered by an extended car warranty are the clips that fasten the hoses in place. Many times those clamps deteriorate with time and not replacing them with the core part can wind you right back in Breakdown Alley.

olive the difference

Our olive Ultimate Protection Plan not only pays for the core part, but it pays for the labor and the metal hoses, couplings, seals and gaskets, linkages and control valves (just to name a few). Now that’s coverage superior to an extended warranty!

So, we’ve added two hundred dollar’s worth of parts to our $400.00 bill. But we’re not done yet. It’s easy to forget about the diagnostic fee. Let’s just figure on adding an additional two hours worth of labor to the bill. Adding in tax, and your brand new power steering pump just cost you $900.00 in an afternoon. This is why so many dealerships are able to quickly sell an extended auto warranty to their customers. It’s fast becoming a no brainer, but wait, your extended car warranty might not include diagnostic time. It sound’s trivial, but over the course of five years (the average length a driver owns a car) you could be spending thousands of dollars above the thousands you’ve already paid on your extended auto warranty in the first place.

olive’s low monthly fee makes a ton of financial sense. It’s like an extended warranty without the headache. olive coverage is everything an extended warranty should be.

whatever your make or model, we have a plan that fits you.

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Smart

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Volvo

Acura

Alfa Romeo

Audi

BMW

Buick

Cadillac

Chevrolet

Chrysler

Dodge

Fiat

Ford

GMC

Genesis

Honda

Hyundai

Infiniti

Jaguar

Jeep

 Kia

Land Rover

Lexus

Lincoln

Mazda

Mercedes-Benz

Mini

Mitsubishi

Nissan

Porsche

Ram

Saab

Smart

Subaru

Tesla

Toyota

Volkswagen

Volvo