Offline vs Online Car Insurance : Top 5 Myths Busted

Imagine the year 1995. You’ve just bought a new car, and now you plan to get a car insurance plan. You find a local insurance agent, set up a meeting, and go through extensive paperwork. Fast forward to today, you can use your smartphone to explore, compare, and purchase car insurance from the comfort of your home. 

Compared to offline car insurance, purchasing car insurance online is more convenient and requires less documentation. Despite these advantages, people still prefer the old ways because a lot of misinformation and scepticism surrounds online car insurance.

Here, we will debunk some common car insurance myths to help you make an informed decision while availing yourself of the conveniences of modern technology.

Myth and Reality: Offline vs. Online Car Insurance

Let’s have a look at five prevalent online car insurance myths and why you must not believe them.

Myth 1 : Buying Car Insurance Offline Is Cheaper

Reality: People have a misconception that offline car insurance is cost-effective. However, it’s the opposite. Online insurance doesn’t require providers to hold meetings in a physical office, accommodate an agent, or invest in a paper-based processing process, reducing operational costs.

Insurers are also more likely to pass on these savings to you through discounts or a lower premium. Moreover, the online insurance market is quite competitive, so you can even shortlist plans with better premiums. Online insurance offers more transparent pricing and price break-ups as well.

Myth 2 : Buying Insurance Offline Is Easier 

Reality: Purchasing an offline car insurance may feel easier to certain people due to familiarity. However, it’s nowhere close to the digital process when it comes to convenience. 

Online car insurance providers sell policies through websites or mobile apps designed with ease-of-use in mind. So, if you are comfortable around basic tech like apps and devices, you’ll get used to the process without hassle. 

For instance, you can easily compare policies side-by-side, calculate the premium, customise your cover with add-ons, and make instant online payments. Not to mention, the policy is issued almost instantly. If you need help, contact customer support 24/7 and they’ll guide you through the process. 

Myth 3 : Offline Insurance Purchase Means You Will Get More Benefits

Reality: This is another prevalent car insurance myth but holds no truth in the digital insurance landscape. It’s the type of insurance and terms of the policy that determine the benefits you’ll receive, regardless of the mode of purchase.

Benefits remain the same as long as the extent of coverage is identical. For instance, comprehensive insurance will offer more benefits compared to third-party insurance. However, choosing to get a comprehensive plan either online or offline won’t change the extent of its coverage.

Myth 4 : Claims Are More Likely to Be Settled If Insurance Is Purchased Offline

Reality: Again, the mode or platform of purchase doesn’t influence the likelihood of a claim settlement. Whether you buy insurance online or offline, the insurance provider will consider all the necessary factors before settling a claim. 

The claim amount you’ll receive depends on your policy coverage, deductibles, cause of damages, and documentation. Insurers also assess damages themselves and check the legitimacy of claims before reimbursing you the amount.

But still, you’re more likely to have a better experience with online car insurance. Digital platforms have a streamlined claim submission process and minimal documentation, leading to faster claim settlements.

Myth 5 : Premium Payments are Safer Offline

Reality: Many people prefer purchasing car insurance offline because they are sceptical about the safety of online payments. That’s why it’s essential to always purchase insurance from a reputable company that employs strict security measures to ensure your money is secure.

Renowned insurers and insurance platforms use techniques like encryption, two-factor authentication, and fraud detection systems to ensure your safety when purchasing online car insurance. Moreover, they only use trusted payment gateways to process transactions, provide digital receipts, and notify you in case of failed or unauthorised payment attempts.

Key Takeaways

Online and offline car insurance are similar when it comes to benefits or coverages offered. However, online car insurance is better, allowing you to compare all your options and purchase policies from your smartphone. Moreover, digitalized paperwork and seamless online payments instantly activate your policy. Furthermore, platforms like PhonePe offer unlimited convenience, making your online car insurance process effortless.