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Be Smart & Make the Right Choice: Always Purchase Car Insurance Online

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Published on April 19, 2021. EST READ TIME: 4 minutes

Similar to the car’s registration copy, a car insurance policy is also an essential part of the car ownership experience. So, while you embrace the newly-launched digitized RTO services, it is time you switch over purchasing car insurance policy online as well!

These days, most insurance companies offer a digital ecosystem for policyholders to make an informed decision before purchasing motor insurance. Unlike the traditional buying process, the online mode is free of intermediaries and endless formalities. You can check, compare and choose with zero hassle and absolute transparency in a matter of few clicks.

In fact, with the pandemic still at play, there is no better time as now to make the offline to online shift. However, we observe that in times like these, despite the need to maintain low engagement, many people remain hesitant to go digital.

Here, we would like to put your doubts to rest and take you through our top five reasons to switch over to purchasing car insurance online.

WHY SHOULD YOU?

1. It is cost-effective: This is the most obvious and fundamental benefit of buying car insurance online. When you buy an insurance policy traditionally, you must go through an insurance agent. The agent generally works on a percentage commission basis, which means that acquiring new business is always more expensive for the insurance company. As a result, people who buy insurance through an agent end up paying more. On the other hand, buying the insurance policy over the internet means dealing directly with the insurance company, which is likely to offer you a better deal.

2. It is customisable: When you buy car insurance traditionally, you rely on the sales agent to inform you of the policy customisation options available. The agent may not inform you of changes to the Insured Declared Value you can make, or they fail to include your No Claims Bonus. They may also try to sell you add-ons you do not need without telling you about the ones you do! When you buy insurance online, everything works like a charm!

3. It is comparable: When buying a car insurance policy online or doing car insurance renewal online, you have the option of comparing different plans offered by the same company or choose between different plans offered by different companies. As a result, you can easily compare and see which insurer and plan offers the main features you want in your policy at the best price.

4. It is convenient: This is a frequently ignored or underappreciated advantage of buying a car insurance policy online. You can use internet banking to make a payment from your bank account. You can use your debit card to make the payment. Credit cards can also be used to make payments, and many card issuers allow you to convert your card transactions to EMIs. Card reward points are another type of welcome bonus.

5. It is quick: If you choose the traditional method of buying car insurance, you will first need to locate an insurance company agent. Once an agent is identified, you must ensure numerous things before making a purchase. First, the agent should offer you the product of your choice and need, rather than making sales with a bias. Second, your agent must assist you with complete paperwork and timely submit it to the insurance company. Third, once approved, your agent must provide you with the insurance policy hard copy. Seems like a lot of co-ordination? Move away from the intermediaries and purchase online. Simply enter your car details, choose the policy as per requirement, make the payment and within minutes, your policy is in your inbox!

While we propagate online purchase of your car insurance policy, our advice is to be careful of fraudulent options. Here are warning signs and tips that you must look out for:

• Ensure you do not fall for counterfeit offers or plans with inaccurate information. Avoid giving your bank account details and call the insurer to check the authenticity.

• Ensure you check with your preferred garages about the availability of cashless cover before buying the policy. Avoid tall claims made by the insurer.

• Ensure you read the fine print of the insurance policy. Avoid being lured with unnecessary add-on covers that may not be useful in the long run.

• Ensure the insurer provides you with a receipt for premium payment. Avoid any further transactions if the company refuses to provide it.

• Ensure the policy document has a signature of an authorised signatory in it. Avoid accepting a document without one and immediately raise a complaint.

Conclusion

In closing, all we can say is that traditional car insurance purchasing is a thing of the past. Purchasing a car insurance policy online is simple, quick, safe and beneficial. Be it third party insurance or comprehensive insurance; the digital platform allows you to choose the plan and the insurer of your choice. Having said that, do remember to look out for the warning signs for fraudulent plans or companies.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales.

This blog has been written by:

S. Gopalakrishnan | Motor Insurance Expert | 40+ years of experience in insurance industry

A veteran in insurance industry, S. Gopalakrishnan is a name to reckon with in the field of reinsurance; he has headed the Reinsurance department and has rich experience in other fields of motor insurance. He loves to share his opinion on the latest topics in the insurance industry and how he can help people in safeguarding their assets using insurance products.

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Few Other Articles:

• A Quick Guide to Buying Motor Insurance Online

• Keep These Factors in Mind While Calculating Car Insurance Premium

• Save More by Avoiding These Common Mistakes While Renewing Car Insurance

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