Is It Safe to Buy a Car Insurance Policy Online?

In today’s era, everything from medicines to home theatre can be purchased online. The insurance industry is not behind as you can easily buy insurance for your car, home and yourself online. In fact, the best car insurance companies do not inspect your car when you purchase vehicle insurance online. This makes the whole mandate of buying insurance for all cars a little less of a burden and a lot easier.

Car Insurance is Mandatory in India

If you own a car, you must be aware that third party insurance cover is mandatory for all cars in India. As per the Motor Vehicles Act, 1988, driving an uninsured car on public roads is illegal in our country. So if you want to drive your car, you must get it insured under car insurance with at least a third party cover.

The motor law only mandates you to buy third party insurance cover for your car. The third party insurance covers your car against causing third party property damages, bodily injuries or death in an accident. However, you can also decide to opt for a comprehensive car insurance policy.

A comprehensive car insurance policy covers your four wheeler against third party liabilities as well as for damages sustained due to events, such as natural disasters, accidents, theft, manmade calamities or fire. This type of policy provides broader coverage as compared to third party insurance and comes at a higher premium price.

The decision to buy comprehensive car insurance or stick to third party insurance is up to your preferred coverage and budget. Whichever type of motor insurance you decide to purchase, you can buy it online from the best car insurance companies in India.

What Are the Benefits of Buying Car Insurance Online?

There are several benefits to buying a car insurance policy online. Take a look:

  • Policy Comparison - When buying car insurance online, you can easily compare plans from different insurers online. You can compare them on the basis of the available coverage and the premium offered. This allows you to get the best deal and buy a policy with your preferred coverage without overspending.
  • Minimal to Zero Paperwork - If it’s online, it involves almost no paperwork. Contrary to buying insurance offline, you do not have to fill multiple physical forms to buy car insurance online. In fact, some of the best car insurance companies may issue you vehicle insurance with zero paperwork, which is environment-friendly and less of a hassle.
  • No Need for an Insurance Agent - While buying car insurance online, you do not need an insurance agent to help you out. You can access all the information related to different insurance plans online and can compare them to find the right fit for yourself. If you don’t understand any technicality, you can always call up the insurer and get it clarified.
  • More Affordable - Car insurance policies purchased online are more affordable than those bought offline. The best car insurance companies offer policies at a lesser rate online as their operating costs reduces when they function digitally. They do not have to pay for office expenses, stationery or agents’ commission. This reduces their expenses and in turn, a lower premium is charged to their customers.
  • Greater Convenience - It is more convenient to buy car insurance online as you do not have to go outside your house. You can purchase it from anywhere at any time. All you need is a device with an internet connection.
  • Instant Policy Issuance - Car insurance policies purchased online are issued instantly. The online policy issuance process is faster and issues the policy within a few minutes of applying. Moreover, you get a digital copy of your car insurance policy which again reduces the overall time.

Is it Safe To Buy Car Insurance Online?

Speaking if buying car insurance online, often the question over its safety looms. Car owners are worried about how safe it is to buy insurance for your car on an online platform than offline.

The good news is that it is absolutely safe to buy car insurance online. When you think of buying insurance from the best car insurance companies online, you can rest assured that you will get your money’s worth. The motor insurance company will offer you the coverage that you were promised at the time of policy purchase. Moreover, comprehensive or third party insurance purchased online is considered legally valid and authentic by the IRDAI (Insurance Regulatory & Development Authority of India).

However, make sure to buy car insurance online from an IRDAI registered motor insurance company only. The IRDAI issues a registration number to every motor insurance company that acts as proof of the company genuineness and authenticity. The insurance regulator keeps an eye on such insurers and holds them accountable for any malpractices or fraud. Thus, you can buy car insurance online without any worries as long as you buy them from an IRDAI registered insurance company.

Besides buying car insurance online from the motor insurer, you can also buy third party insurance or comprehensive insurance for your car from insurance broker websites, such as Policybazaar.com. An insurance broker is a company that allows you to buy insurance online from a variety of insurance companies. They offer you the liberty to compare and purchase plans by the best car insurance companies and choose the one which suits your requirements the most.

Similar to motor insurance companies, the authenticity of an insurance broker can also be ascertained by checking for its IRDAI registration number. You can find the IRDAI registration number on the website of the insurance provider and the insurance broker. Thus, you must check for the IRDAI registration number of a website before buying car insurance.

Moreover, you must also go through the policy coverage and read the terms & conditions carefully before buying a car insurance policy. This eliminates the chances of any surprises that you may get later regarding the coverage that would result in denial of the claim.

You should also read the existing customer reviews and check the claim procedure of the insurance company before buying the policy. The claim settlement ratio and claim settlement speed also help you understand how much your claim is likely to get approved and how much time will it take for you to receive your claim amount.

Warnings Signs to Look Out for When Buying Car Insurance Online

When buying car insurance online, there are a few warning signs that you must look out for. These warning signs act as a red flag and indicate the probability of fraud, identity theft or data theft. Here are some of the warning signs that you should look out for when buying a car insurance policy online:

    • Counterfeit Offers

      Counterfeit offers are one of the biggest warning signs of fraud. They are used extensively for phishing scams where you are tricked into giving away your bank account details. You may come across unbelievable offers while buying car insurance. When you click on the link to avail the offer, you will be asked for your bank account details. When you provide the details, you will be robbed off your money.

      Hence, you should be careful to avoid falling for any counterfeit offers. The best way to check the authenticity of a too-good-to-be-true offer is by calling up your insurer. Ask the customer support about the genuineness of the offer and go ahead with it only if it is confirmed by the motor insurance company.

    • Inaccurate Information

      Availability of inaccurate information about an insurance company or the car insurance plan is another warning sign. Discrepancies in the information can act as a proof against the company or the website’s genuineness. Thus, you must look out for discrepancies or wrong information on the website of an insurer.

      If you come across inaccurate information or any discrepancies, you should get in touch with the insurance company and cross-check the information. Only after you have clarity on the information, you should go ahead with buying comprehensive or third party insurance for your car from that website.

    • No Payment Receipts

      Another warning sign of a fraud is when the best car insurance companies do not provide you with a receipt for premium payment. A genuine company will always provide you with a receipt for any premium that you pay. If the company refuses to provide it, you must avoid buying car insurance from it.

      On a safer side, you must always ask for a premium payment receipt for any transaction that you make. Make it a habit to check with your insurance provider about giving you a receipt before you make the actual transaction. Also, keep all the premium payment receipts safely for any future references.

    • Signature on the Policy

      When you buy a car insurance policy online, always check if your policy document has a signature on it. Your car insurance policy document should consist of the signature of an authorized signatory from the motor insurance company. If your policy document does not consist of a signature then you can suspect foul play and raise a complaint.

      Moreover, always ensure to sign your car insurance proposal forms yourself. Never let anybody else sign it on your behalf.

In a Nutshell

Purchasing a car insurance policy online is totally safe and highly beneficial. Be it third party insurance or comprehensive insurance, you can buy it online as per your choice from the best car insurance companies in India. Do remember to look out for the warnings signs to differentiate fraudulent websites from genuine ones.

Written By: PolicyBazaar - Updated: 18 November 2020
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