Is it a Good Idea to Buy Car Insurance Online?

Remember the early days of online shopping? We had so many queries and concerns about its legitimacy. Most people avoided making expensive purchases online as they believed that it was all a scam.

Cut to today– online shopping is so normalised that we even buy our daily groceries from digital platforms. While new ideas do attract negative concerns, they are not necessarily bad. The same applies to online car insurance.

Why Buy Car Insurance Online?

If you are confused about buying car insurance online or offline, here are some benefits of online car insurance that will change your mind:

1. Unbiased Comparison

Traditional means of purchasing car insurance plans are full of biases. Agents used to not disclose a clear picture of the plans or unknowingly influence you from evaluating plans thoroughly. However, purchasing car insurance online provides complete transparency about the terms of each plan. 

2. Easy and Convenient Application

Like every other digitized process, purchasing a car insurance plan online is easier and more convenient. All you need to do is fill in your details, choose a plan, and pay. The best part? You can do all of this anytime, anywhere.  

3. Secured Payment Process

Another great benefit of online car insurance is its secured payment gateways. You can pay for your plan online using any method you like. Head to the payment interface, select your preferred mode, enter your details, authorise your transaction– and you are done. You get transaction receipts and your policy documents securely. 

4. Access to Documents and Support at Your Fingertip

Online car insurance plans are known for their accessibility. All the important documents related to the insurance can be safely stored digitally, allowing you to access them at any time. The online experience is even more enhanced by a robust customer care system. No matter how small the query, you can easily get it clarified by contacting a customer care representative.  

5. Empowered Purchases 

According to a report, Indian insurance companies had a persistency ratio of 47% in the 61st month. This means less than half of the customers continue with the same insurance provider after the 5th year. A major reason behind this is incorrect insurance purchases caused by family, friends or independent agents’ recommendations. Fortunately, this scenario can never arise in online car insurance. When buying car insurance plans digitally, you will not encounter any agent trying to convince you to buy a specific plan. You get all the plan details at your fingertips to make a decision that satisfies your needs.  

How to Buy Car Insurance Online?

You can easily buy car insurance online by following these steps:

1. Understand Your Needs

Before you start comparing different plans, take the time to understand your insurance needs. Consider factors such as the type of coverage you need, car type, budget, and any add-ons you may need for comprehensive protection.

2. Research Thoroughly

When it comes to car insurance, you have three options to choose from:

• Third-party liability coverage, which is mandatory by law
• Own damage coverage, which only provides coverage to your car, and
• Comprehensive coverage, which covers both third-party and own damages

Research these policies thoroughly, along with any add-ons or riders offered by the insurer to ensure adequate coverage.

3. Compare Different Policies

Once you’ve narrowed down the type of plan you want, compare the car insurance policies offered by different insurance providers. Consider factors, such as coverage, features, premiums, claim process, and the claim settlement ratio. You can also read customer reviews to gauge their customer support capabilities.

4. Purchase the Plan

Once you’ve identified the right policy, make the online payment using any of your preferred methods. Some policies also allow you to choose between monthly, quarterly, or annual premium payments. So, choose an option carefully based on your preference. But before making the payment, make sure to read all policy terms carefully to avoid any hassle later.

Key Takeaways

Digital insurance platforms offer a safe and convenient way of buying car insurance online. On digital platforms like Phonepe, browsing and comparing your options are easier, customizing a plan is feasible, and paying instantly adds to the convenience of buying insurance.