Buying Car Insurance Online Vs Offline: Which is Better?
Car insurance is a mandatory requirement for every car owner in India. Initially, due to the involvement of
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Buying 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 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.
Buying 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.
Moreover, you may also be required to visit the registered office or branch of the insurance provider more than once.
Difference Between Buying Car Insurance Online and Offline
A lot of people are still hesitant to buy car insurance online and often wonder if buying the policy offline is better than buying it online. Well! To answer this question, let’s first know the differences between the two methods of buying car insurance with the help of this table.
| Categories |
Online Car Insurance |
Offline Car Insurance |
| Meaning |
Online car insurance purchase refers to buying a car insurance policy virtually with the help of a computer or a mobile phone. |
Offline car insurance purchase refers to physically buying a car insurance policy at the insurance company's office or contacting an insurance agent. |
| Buying Process |
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. |
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. |
| Paperwork |
Involves minimum to zero paperwork. |
Involves lots of paperwork as you need to fill up multiple forms. |
| Time |
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. |
Which is Better Online or Offline Insurance?
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.
In the table below, you can see the difference in car insurance cost for a brand new Tata Tigor if purchase it online vs offline:
| Particulars |
Online Purchase |
Offline Purchase |
| Make |
Tata |
Tata |
| Model |
Tigor |
Tigor |
| Variant |
XZ Plus |
XZ Plus |
| Fuel Type |
CNG |
CNG |
| Vehicle CC |
1199cc |
1199cc |
| Ex-showroom Price |
Rs. 8,69,900 |
Rs. 8,69,900 |
| Car Insurance Price (includes - Zero Depreciation, Invoice Price, 24x7 Roadside Assistance, Anti-theft device discount) |
Rs. 22,208 |
Rs. 60,000 |
| Road Tax Charges |
Rs. 69,592 |
Rs. 69,592 |
| CNG Rebate (if applicable as per states) |
Rs. 13,918 |
Rs. 13,918 |
| Registration Fees (registered in Haryana) |
Rs. 600 |
Rs. 600 |
| Fastag Fees |
Rs. 500 |
Rs. 500 |
| HSRP Number Plate + Smart Card+ Temporary fees |
Rs. 1,000 |
Rs. 1,000 |
| Total Reg Fees |
Rs. 57,774 |
Rs. 57,774 |
| Net Value |
Rs. 9,49,882 |
Rs. 9,87,674 |
Note:
- The offline insurance price may vary from dealer to dealer.
- If your car has been hypothecated, you will be required to pay HP endorsement charges of Rs. 1500.
Moreover, as a potential buyer, you should also not be misguided by dealers claiming to offer "cashless network garages" if you purchase policy from them. However this statement is not true, as cashless services can also be availed if you buy policy online.
As you can see in the above table, the savings under an online car purchase are higher than an offline purchase. Therefore, buying a car insurance policy online is a better option that purchasing it offline.
