Will buying car insurance directly be cheaper?


Online insurance is still in its infancy and it is fairly common to wonder if buying your car insurance directly as opposed to through an agent will be cheaper. Know the answer to this in our article.

People are increasingly investing through online platforms as the world becomes digital. Today, you can easily compare different insurance companies and get information before you purchase anything, including a policy. However, some people still prefer to go the conventional route when purchasing insurance, i.e. they make investments based on the advice of their insurance brokers or agents. It is possible to find the right policy at the most affordable price by using the services of a broker or agent when buying a car insurance policy.

Agents are paid commissions by insurers for every sale, which are included in your premiums. If you want to avoid commissions and buy it directly you can easily do so. Let us first look at the ways to buy four-wheeler insurance in India.

Through Insurance Companies


The easiest way to insure your car is through a motor insurance company. All car owners can purchase four-wheeler insurance by contacting the company with which they wish to do business. If you need assistance, either contact the customer care team or visit the nearest branch of the insurance company. When you buy car insurance, you will need to fill out a proposal form and submit it to the insurance company's branch.

Through Insurance Agents


Agents are the people who sell insurance policies for car insurance companies. It is possible to further classify agents into two types. Captive agents sell policies for only one insurer. It is the agent's responsibility to attract business for a specific insurance company under the direction of the insurance provider. They also serve as customer service representatives for insurers and answer all queries and questions from customers. Independent agents can sell all types of insurance policies and they are responsible for resolving different issues of customers for insurers.

Buying Car Insurance Online


A car insurance policy purchased online is one of the easiest and most convenient ways to get coverage for your vehicle. You will get multiple benefits here, such as premium discounts, an easy policy renewal process, no agent commission, and excellent customer service. Buying online is convenient because you don't have to run after an agent, a car dealer, or an insurance company. You can compare different car insurance plans online according to your preferences by visiting websites that offer online car insurance. Furthermore, websites let you compare multiple insurance policies offered by different insurers at once.

Benefits of Buying Online Car Insurance


You must have concluded after reading the above points that, in most cases, buying car insurance online is more beneficial than buying it offline. Here are some benefits of buying car insurance directly or online if you are still confused.

Better Research


A car insurance policy can be found online if you research it carefully. There is also the insurer's website, blog posts, and Policy Wording. You can make an informed and calculated decision by using the online policy buying process to conduct better research and comparisons.

Low Premium


A car insurance policy offered by a digital-first insurer is usually less expensive than one offered by an offline insurer. It is because online insurers have low operating costs and don't rely on intermediaries, thereby reducing commission costs. The manpower requirements of digital insurers are also reduced because they do not need to maintain physical sales offices.

2-minute Purchase


A car insurance policy can be purchased via an app or a website in two minutes. No paperwork is required. There are no commissions paid. Filling out long forms is optional. There is no need to submit a bunch of documents. The process of buying car insurance online is quick, easy, and convenient.

Prompt Service


Online insurer's customer support team is available 24/7 to help you with any problems you may encounter while purchasing a policy or filing a claim.

Hurdle-free Claim Settlement


The process of settling a claim through online car insurance eliminates hurdles such as heavy documentation, coordination issues, and money transfers. Blockchain, Artificial Intelligence, and Machine Learning allow online insurers to offer instant claim settlement, Cashless Claims, and seamless coordination.

What is offline car insurance?


A car insurance policy purchased offline involves visiting the insurance company or contacting an insurance agent in person. The process involves submitting physical paperwork and signing documents. The car insurance policy you receive must be kept safe because there is a possibility that you may lose it. You may be fined if you lose it since traffic police require you to produce it when asked.

What is the solution to offline car insurance?


A digital insurance company provides a solution to all the issues you face when buying a plan offline. The costs associated with issuing a physical car insurance policy are eliminated when you purchase car insurance online. You won't have to pay an additional fee to hire an insurance agent if you choose online insurance. Consequently, you get a substantial discount on your car insurance.

Buying car insurance offline can go wrong for several reasons


A few decades ago, India was not progressing as quickly as it is now on the technological front. A huge part of this growth can be attributed to the Internet. Car insurance, for example, is much more convenient to purchase online than offline. But if you think offline insurance is better, let us explain some of its downsides. Here are the things that can go wrong when buying car insurance offline.

You could end up paying more


When you purchase a car insurance policy offline, you incur many operational costs. You will also be charged more if you hire an insurance agent. This results in an expensive policy. The coverage you receive is not guaranteed to be value for money.

No option to compare car insurance plans


You will receive a brochure from your car insurance agent. This document contains details about the policy, and your insurer will provide a quote. There is no easy way to compare plans from different insurance companies and know what other plans are available. If you buy car insurance without comparing plans, you may end up with an overpriced policy with fewer benefits.

Can't check the insurer's reputation


The main way to determine the quality of a car insurance company offline is through word-of-mouth. The advantage of buying insurance online over offline is that you can check reviews and star ratings from existing customers. This gives you an idea of what kind of company you will deal with in the future.

Time-consuming process


A car insurance policy purchased offline requires both time and money. A meeting with an insurance agent is the first step in the process. Afterwards, you fill out the proposal form and attach documents to apply for a policy. The next step is approval, and then the policy is generated. This is where you receive a physical copy of the document by mail. It usually takes around 7 to 10 working days for the entire process to be completed. If your previous policy expires during this period, you are left uninsured and at risk of financial loss.

Which is Better?


It has been mentioned in the previous sections that online car insurance is better than offline car insurance. You must, however, consider these options from your perspective. The traditional approach might be preferable to those who are not tech-savvy, are too comfortable with agent-based approaches, and do not mind forgoing online benefits.

There is also a way around this. Ask a millennial relative for assistance if you find the online process daunting. A better option would be to try to insure your car yourself online, it is not too difficult. The final decision is up to you. If you find a method stressful, skip it and choose another. Nevertheless, you must purchase and renew car insurance as a legal requirement.

Wrap-up


You can see that buying insurance online has more benefits than buying it from an agent. You can find out a lot by doing a little online research. By doing so, you are able to make informed decisions when it comes to investing and also save a great deal of money.


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