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4 advantages and disadvantages of purchasing auto insurance online


With consumers now finding it easy to purchase insurance policies online, the industry has also embraced a customer-centric paradigm shift fueled by digitalization to improve business. It has also become easier and more convenient to purchase an auto insurance policy online. However, some customers may have a different set of requirements, and their queries often remain processed online.

Therefore, before deciding to buy a policy online, you need to weigh the pros and cons associated with it.

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Benefits of purchasing auto insurance online

No document: No one likes the prospect of filling out long forms and providing countless documents to purchase insurance offline. “Switching to purchasing auto insurance products online eliminates the need to navigate this quagmire by only asking potential buyers to provide basic information to receive a quote,” said Animesh Das, Director – Auto Underwriting, ACKO Insurance.

Win time: Customers who purchase insurance online are also freed from time constraints. The whole buying process can be done in a matter of minutes and the purchase can be done at any time. The offline process, on the other hand, is time consuming as the customer has to go to the branch of the insurance company or meet with an agent to purchase a policy.

Easy to compare: Comparing policies online and choosing the most appropriate is a snap for consumers, with web aggregation sites simplifying the entire process. Policies can also be easily reviewed individually, with auto insurance calculators available on insurers’ websites. In contrast, this traditionally involves going to different branches and manually comparing different policies, an unnecessarily long and inconvenient process.

Low price: “The operational costs associated with online insurance are lower than with offline insurance, as digital insurers do not have physical sales offices to maintain, and labor requirements are also high. reduced. Less operational costs correspond to low cost policies with no effect on coverage, ”said Das.

Cons of Buying Auto Insurance Online

Unanswered requests: “When buying insurance online, there are several issues that may require immediate attention. Providing incorrect details may result in repudiation of the claim, ”said Vishwajeet Parashar, chief marketing officer, Bajaj Capital. For example, if you don’t know enough about how the policy works, how to settle the claim, what add-ons are available with the policy, whether you need to purchase them or not, then there would be a lot of questions that would go unanswered in the when purchasing a policy online.

Do not take advantage of premium discounts: The voluntary deductible in an insurance policy is still a gray area for most policyholders as to why it is necessary to opt for it. Normally, insurers allow policy buyers to share some of the risk associated with the insurance. This is called the “deductible”, it is a predetermined amount of loss that is borne by the insured at the time of settlement of the loss. So, in this way, the voluntary deductible can be purchased in addition to the mandatory deductible to get a discount on your premium. However, to understand this, you need to get help from an insurance expert before purchasing a policy. Most of the time when you buy a policy online, you can miss out on this important aspect which helps lower your car insurance premium. Another downside is that there are some features like “voluntary deductible” that the buyer may not understand and ignore. By opting for such features, the premium could have been lowered, ”Parashar said.

Buying a policy from a fraudulent website: Even though the regulator keeps policy buyers aware of many scam websites that sell insurance policies online and are not licensed, it is also your responsibility to be vigilant when purchasing insurance online. So, you need to be careful of these online scams because these bogus websites can take your financial and personal information unknowingly.

Lack of help filing a complaint: Generally, insurers do not have an online claims processing mechanism. So when you buy a policy online at the time of loss, it can be difficult to file a claim because you won’t get help from people right away. First you need to get in touch with customer service representatives and so on. However, on the other hand, if you had purchased the policy offline through an insurance agent, they would help you settle the claim immediately. It is always comforting to have a familiar voice that can also help you with your claims when needed.

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