Is Buying Car Insurance Online Right for You?

With a wave of digitization in the country, businesses have chosen to reach their customers via the online channel. While this online medium of transacting business has paved the way for companies to reach directly to their target customers, it also eliminates several middlemen, thereby shortening the entire purchase cycle. This is true even for companies that offer financial services, including car insurance.

Insurance is mandatory as a vehicle owner, and it is a legal requirement for all vehicle owners to purchase one. While you can still opt to buy in the traditional way through an insurance agent, buying directly from the insurance company is also possible via the online mode. However, every buyer has a certain set of questions that often remain unanswered when it comes to online car insurance plans. This article aims to highlight the pros and cons of these online policies for you to choose the right channel.

The advantages of buying car insurance online

  • Convenience in purchase

An online car insurance plan can be bought from anywhere in the world. There are no geographical limitations when buying one. With a busy work schedule, it can often be difficult to make time to visit the insurance company’s office or schedule an appointment with your insurance agent. At these times, an online policy provides the flexibility to buy a suitable car insurance plan from anywhere at any time. *

  • Pocket-friendly

An online car insurance plan is directly sold by the insurance company to the policyholder. In this process, there are no middlemen involved, thereby bringing down the cost of any commissions that would otherwise need to be paid. This savings in cost can be passed on to the policyholders, thereby lowering the cost of their insurance coverage. *

  • Simplified comparison of plans

Online car insurance plans can be compared using tools like a car insurance premium calculator. This tool not only helps determine the impact of different features on your overall premium amount, but also helps in comparing the plans against each other based on features. Further, this feature is not limited to plans offered by the same insurance company, but also among different insurers. *

  • Access to documents online

With a car insurance policy issued online, you can simply access the policy either in your mailbox, or by logging in to your account on the insurance company’s website. With online access to your vehicle insurance documents, you need not worry about always carrying a physical copy with you when driving. *

* Standard T&C Apply

The shortcomings of online insurance policies

  • Research required

When buying a policy online, you are not guided by any person, and for that reason, you need to educate yourself on the different terminologies used in your insurance document. For instance, you must familiarize yourself with what is covered by a third party car insurance online versus a comprehensive car insurance plan. *

  • Familiar with technology

To purchase a policy online, you must be well versed in using computers or mobile phones to navigate your purchase. While young individuals may not encounter any problem, generally, older people face issues in adapting to new age technology. *

  • Avoiding falling prey to fraudulent websites

Online policies need to be purchased from the insurance company’s website only. Many fraudsters pose as insurance companies to defraud innocent buyers into buying car insurance that holds no validity. *

* Standard T&C Apply

These are some of the pros and cons of buying online insurance plans. Knowing them, you can decide on a suitable alternative based on your comfort level. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.


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