Car insurance is a must for all vehicle owners in India, and for that matter, anywhere in the world. It ensures adequate coverage from accidents, theft, fire, natural disasters, and third-party responsibilities, especially in terms of costs. However, securing car insurance can be expensive, particularly if you are unaware of what impacts the premium.
Saving money on car insurance is possible by purchasing it online. Online car insurance offers more benefits than offline methods – it is convenient, transparent, customisable, and comparable. Online operations lower administrative costs as they eliminate the need to maintain brick-and-mortar offices and branches for issuing policies.
Online insurers develop their websites and offer online plans listing the benefits and premiums the customer is supposed to pay. In this article, we will discuss six reasons why online car insurance costs less and how to buy car insurance online.
Reasons to Buy Car Insurance Online
- No Agent Commission
- Lower Operational Costs
- More Discounts and Offers
- Better Comparison
- More Customisation
- Quicker and Easier Process
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No Agent Commission
One of the biggest reasons online car insurance is cheaper than offline car insurance is that no agent commission is involved. When you buy car insurance offline, you must pay a certain percentage of the premium amount to the agent or broker who sells you the policy. This commission/fee can range from 10% to 25%, depending on the type and duration of the policy.
However, when you buy the same insurance policy online, you directly deal with the insurance company. As no middleman comes into the picture, no commission is to be paid. This reduces the cost of the policy and allows you to save money.
Suppose you are buying a car insurance policy online for the first time and think the process could be tedious. Trust us. In that case, you only need to provide a few basic details by visiting your insurer's website, and you will be insured within minutes. The details you will need to provide may include your vehicle's registration number, certification document, and the old insurance papers.
Thus, the negation of paying agent commission is one of the chief reasons to buy car insurance online.
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Lower Operational Costs
Another reason online car insurance is cheaper than offline car insurance is that the operational cost of online insurance is lower. Online insurance companies do not have to maintain physical offices, staff, infrastructure, and other overhead expenses that offline insurance companies have to bear. These savings are passed on to the customers in the form of lower premiums. Even if the insurers have several physical outlets, they conduct most of their business operations online.
Moreover, digital insurers use advanced technology and automation to process customers' applications, claims, and renewals. This reduces the chances of human error, fraud, and delays, which can increase the cost of offline insurance.
Consumers should remember that they should be careful to ensure their personal information, such as credit card information, does not get leaked. Hence, it is crucial to buy car insurance online from well-known brands.
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More Discounts and Offers
Customers get attractive discounts and offers from online car insurance providers compared to their offline counterparts. Online insurers often run promotional campaigns and schemes to attract and retain new customers. For example, you can get deals for buying multiple policies from the same company, installing anti-theft devices in your car, being a prime member, having a good driving record, and much more.
You can also get offers such as cashback, vouchers, coupons, and complimentary services when you buy car insurance online. These discounts and offers can reduce your premium amount significantly and help you save money. Further, policyholders can also avail of early bird discounts when they pay their car insurance premium online. As such discounts are valid for a limited time, they can prompt customers to book a policy within that stipulated time frame.
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Better Comparison
One major advantage of purchasing car insurance online is that it allows the customer to compare various policies from different companies all in one place. You can assess the features, benefits, coverage, exclusions, and premiums on a single platform and even read customer reviews about different policies. This helps you select the policy that perfectly matches your requirements and budget.
Furthermore, online comparison aids you in finding the best car insurance deal and prevents you from paying for unnecessary or insufficient coverage. By utilising online resources such as car insurance calculators, you can estimate your premium amount based on your car's details and coverage preferences – typically unavailable offline options.
Comparing insurance policies online is a quick, easy, and hassle-free method to find a policy that aligns with your requirements.
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More Customisation
Online car insurance allows you to customise your policy according to your specific requirements. You can choose the type of policy (third-party or comprehensive), the amount of coverage (Insured Declared Value or IDV), the add-on covers (zero depreciation, roadside assistance, engine protection, etc.), the deductible (voluntary or compulsory), and so on.
Customising your policy online helps you optimise your coverage and premium amount according to your risk profile and affordability. You can also modify or cancel your policy online without any hassle or penalty.
Listed below are some customisation benefits you can enjoy from online car insurance, giving ample reasons to buy car insurance online:
- Third-party liability insurance
- Comprehensive car insurance
- Convenience and time-saving
- Quick and effortless comparison
- Competitive premiums
- Instant Policy issuance
- Enhanced customer support
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Faster and Easier Process
The last reason online car insurance is cheaper than offline car insurance is that buying is faster and easier. You can get online car insurance in a few minutes from anywhere and anytime using your smartphone or laptop. All you need to do is fill out a simple form with your basic details and make an online payment using secure modes such as net banking, credit card, debit card, UPI, etc.
You will receive your policy document instantly on your email or SMS. You can also renew your policy online without any paperwork or inspection. In case of any claim, you can register it online and get cashless service at network garages.
Hence, in today's world where technology is at the forefront of everything, choosing to renew or purchase car insurance online is commonsensical. As we can see, the advantages far outweigh any minor disadvantages. Moreover, traffic checks do not require drivers to produce their documents in hard copies; hence, you can store all your documents, including car insurance policy papers as soft copies in your mobile phone and furnish them whenever the traffic police require them.
Frequently Asked Questions
Q1. Is comprehensive car insurance necessary?
Comprehensive car insurance is not always necessary, but it is a smart choice. It covers many factors, including accidents, theft, and natural disasters. Comprehensive insurance is great if you want extra protection and can afford it. You can also customise your insurance coverage with multiple riders. However, buying basic liability coverage will only pay for losses incurred by a third party (physical or property). It won't pay a single paisa for repairs and maintenance to your damaged four-wheeler.
Q2. Where can I buy car insurance?
You can buy car insurance from different places. Insurance companies have websites to facilitate online purchases. Insurance agents and brokers are also available and can help you get the policy you choose. Banks and financial institutions offer insurance too. Remember to compare options and choose what suits you best. We have already gone through the reasons to buy car insurance online; hence, whenever you need to renew or purchase insurance, remember all you need to do is flip open your laptop or mobile phone and get started!
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the Insurance industry and products. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.
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