Advantages and Disadvantages of Shopping Online for Car Insurance


Car accidents are common in India due to massive traffic problems. In 2015, there were 4,96,000 road accidents, according to the National Crime Records Bureau. These data show how vulnerable we are to accidents. Accidental claims are expensive to bear on one’s own; the easiest way to avoid car, and personal damage expenditures are to obtain a car insurance policy. Can also use an insurance policy to file a claim for medical spending.

Because consumers can easily shop for insurance plans online these days, the sector has embraced a customer-centric, digitalization-powered paradigm shift to enhance business. Purchasing vehicle insurance coverage online has also gotten more accessible and more comfortable. However, specific consumers may have distinct needs, and their questions are frequently answered online.

Appropriately, before you decide to buy insurance online, you should consider the benefits and drawbacks.

List of Advantages

There is no documentation: No one looks forward to the thought of filling out lengthy paperwork and providing a plethora of papers to acquire insurance offline. “By simply asking potential buyers to give minimal information to obtain a quotation, switching to buying vehicle insurance products online eliminates the need to traverse this quagmire,” stated Animesh Das, Director Of Motor Underwriting ACKO Insurance.

Saving time: Customers who purchase insurance online are also emancipated from time limitations. The entire purchasing procedure takes only a few minutes, and may perform the transaction at any time. On the other hand, the offline method takes time because the consumer must go to a branch office of the insurance company or meet with an agent to purchase a policy.

Can compare several policies: Buying vehicle insurance used to take a lot of time and effort on the part of the potential insured. The first way is to contact the insurance company or an insurance representative by phone or physical visit. Then, either by the policy on offer or repeat step one with a different insurance provider or agent. In this case, evaluating several plans for their features, auto insurance rates, and insurer services becomes a time-consuming task. However, purchasing auto insurance online eliminates the need for physical comparison. Instead, go to the website of any insurance aggregator and use the free comparison tool to get the best auto insurance coverage.

You receive the best possible deal: In today’s competitive market, various vehicle insurance plans with comparable features and services are available for varying car insurance quotes. When you compare vehicle insurance online, you can check the costs of each insurance policy before deciding which one to purchase. The main thing to keep in mind here is that should deliberately compare comparable sorts of policies.

Comparing a Third-party liability coverage to a Comprehensive policy, for example, is pointless. Instead, to obtain the lowest price, compare the same type of plans offered by different businesses.

Low prices: “The operating expenses connected with online insurance are lower than those involved with offline insurance because digital insurers do not need to operate physical sales offices, and staffing requirements are also reduced.” “Lower operating expenses equal to lower-priced insurance with no effect on coverage,” Das explained.

List of Disadvantages

Unanswered questions: “When purchasing insurance online, there may be numerous questions that require immediate attention. “Providing incorrect data may result in claim rejection,” stated Vishwajeet Parashar, Chief Marketing Officer at Bajaj Capital. For example, suppose you do not have an adequate understanding of how the policy works. In that case, the method for getting the claim paid, the add-ons available with the procedure, and whether you should buy them or not will be a lot of questions that will go unanswered when purchasing a policy online.

Missing out on fee discounts: Most policyholders are unsure why they should choose voluntary excess in an insurance policy. In most cases, insurers enable policyholders to share some of the risks involved with the insurance. The “excess” is a pre-determined claim amount borne by the insured at the time of claim settlement. As a result, optional excess can be purchased in addition to compulsory excess to receive a premium discount. However, before buying a policy, you should get the advice of an insurance professional. When you buy a policy online, you may overlook one key factor that can help you save money on your auto insurance. “Another drawback is that some characteristics, such as ‘voluntary excess,’ may be overlooked by buyers who do not comprehend them. “By choosing such features, might have reduced the premium,” Parashar explained.

Buying insurance from a bogus website: Even if the regulator warns policyholders about many unscrupulous websites that sell unlicensed insurance policies online, you should be cautious when purchasing insurance online. Since a result, you must be careful of such internet frauds, as these bogus websites might steal your financial and personal information without your knowledge.

Absence of assistance in submitting a claim: Most insurers do not offer an online claim processing tool. So, if you acquire a policy online after a loss, you may find it challenging to submit a claim because you won’t be able to receive aid right away. You must first contact customer service staff, and so forth. However, if you had acquired the policy offline through an insurance agent, they would have promptly assisted you in resolving the claim. It is often reassuring to hear a familiar voice that can also help you in settling your claims when you are in need.

Tags : car