Online vs Offline Car Insurance: Which is Better
Having a car insurance policy is mandatory for all vehicle owners in India.Read more
Why Buy Car Insurance Online?
The process of buying a car insurance policy has become simpler in recent years. With the digitisation of the insurance industry, you can easily purchase insurance for your car online. Unlike in the older days, you no longer need to visit the branch of a motor insurance company or meet an agent to purchase insurance for your vehicle. You only need a mobile/computer and an internet connection to buy a suitable car insurance online instantly.
All motor insurance companies sell their car insurance online. You can visit the insurance company's website to buy the insurance plan that provides the best coverage for your vehicle.
In case you get confused amongst the multitude of car insurance plans offered by various insurers, you can compare different plans with each other online on Policybazaar.com and choose the best plan.
Here are some of the reasons to buy car insurance online:
- The premium while buying car insurance online is much affordable and lower than its offline counterpart.
- It is convenient to compare, buy, and renew a motor insurance policy online.
- The process is transparent, easy, and fast.
- It involves minimal paperwork and can be done around the clock from the comfort of your home.
Why Buy Car Insurance Offline?
It is the traditional process of purchasing an insurance policy offline via an insurance agent or by visiting the insurance company's branch. The offline purchasing method of car insurance is tedious as it involves manual documentation. It is only better for policyholders who prefer a manual claim process and are not comfortable with the digital process.
Moreover, you may also be required to visit the registered office or branch of the insurance provider more than once. However, if you still prefer to buy car insurance offline, here is what to expect:
- You can get personalised guidance from an agent without manually comparing different plans.
- You can choose to buy car insurance offline if you prefer personal interaction and have more trust in an agent.
- You can use a demand draft, cheque, or other flexible options to pay the car insurance premium.
Difference Between Buying Car Insurance Online and Offline
Check out the differences between the two methods of buying car insurance online vs offline with the help of this table:
| Categories |
Online Car Insurance |
Offline Car Insurance |
| Meaning |
It refers to buying a car insurance policy virtually with the help of a computer or a mobile phone. |
It refers to physically buying a car insurance policy at the insurance company's office or contacting an insurance agent. |
| Buying Process |
This process only involves visiting the official website/mobile app of the insurer or an insurance broker, selecting a car insurance plan and making the premium payment online. |
This process involves visiting the nearest insurance company branch or meeting with the insurance agent, filling up the proposal forms, submitting them and paying the premium. |
| Car Insurance Premium |
Lower, as the insurer's operational costs are reduced. |
Higher as it includes operational costs, such as stationery costs, office expenses, agent's fees, etc. |
| Plan Comparison |
Compare car insurance plans online based on their premium, coverage, and benefits offered |
Difficult to compare car insurance plans by different insurers offline as you may have to visit their offices separately. |
| Convenience |
More convenient than buying it offline, as you can access the internet round the clock from the comfort of your home. |
Not very convenient as you will need to visit the insurer's office or meet an agent during working hours. |
| Transparency |
Higher level of transparency as no middlemen are involved, and you can cross-check all the information on the website before buying the policy. |
Lower transparency as middlemen like agents are usually involved in the process, and you believe everything they say. |
| Influenced Decision |
The probability of getting influenced by an agent is zero, as you can compare different plans online and choose the most suitable one. |
You may get influenced by the agent and end up buying an expensive policy with lesser coverage. |
| Claim Support |
24x7 digital claim support with online tracking and quick claim intimation |
Claims are registered through an agent or branch office, which may take more time. |
| Vehicle Inspection |
Easy video inspection or self-inspection through a mobile app or website |
Physical inspection conducted by an agent or surveyor. |
| Policy Authenticity |
Policy is generated instantly from the insurer's system and is easy to verify online. |
Policy is issued through an agent and may require manual verification. |
| IDV |
You can choose the IDV yourself and see real-time premium changes. However, it must be set accurately. |
IDV is suggested by the agent with limited flexibility. |
| Time |
A quick process, as you can buy a car insurance policy online within a few minutes. |
Time-consuming as you need to visit the insurer's branch or fix an appointment with an insurance agent. |
| Premium Payment |
Pay the premium amount online via debit cards, credit cards or Internet banking. |
Premium can be paid offline through cash, cheque, etc. |
| Customer Support |
Availability of 24*7 customer support along with an online knowledge base. |
Available only during office hours. |
| Renewal |
Online renewal is easy. All you need to do is log in to your account or enter your car number to renew it. |
Offline renewal is cumbersome as you will have to visit the insurer's office or meet with an agent and fill up the forms to renew it. |
Is it Better to Buy Car Insurance Online Or Offline?
Buying car insurance online is undoubtedly better than buying it offline. This is because the online process is faster, more convenient and more economical than the traditional method.
For your new cars, you can easily compare multiple quotes online and purchase the same policy with equal or more add-ons at a much affordable price. The dealer may include add-ons that are not relevant to you, which results in higher premiums. In some cases, you can easily buy a 3+3 bundled policy for the same amount that the car dealer is selling you a standard policy.
While a new car insurance ideally only starts at ₹2,094 for an annual third-party insurance as set by the IRDAI, the savings under an online car purchase are higher than an offline purchase based on the OD component.
Moreover, as a potential buyer, you should also not be misguided by dealers claiming to offer "cashless network garages" if you purchase an offline car insurance policy. However, this statement is not true, as cashless services can also be availed if you buy car insurance online.
