Is Buying Vehicle Insurance Online Better?

Motor Insurance

Technology is known to make life easy. Tasks that were once considered inconvenient can now be performed effortlessly by leveraging technology. Internet, e-commerce, mobile apps, etc. have revolutionized the way we eat, travel, and shop.

Motor Insurance

Today, the millennial generation has embraced technology wholeheartedly. But the older generation might have some adaptability issues. To be fair, someone from the Telegram era will find it difficult to understand Instagram. However, the key to befriending technology is to remove the fear associated with it.

A decade ago, people were reluctant to transact online due to security issues and a laborious buying process. They would research online and buy offline. Now, consumers are using online wallets and enjoying the benefit of one-click shopping. This change can be seen across industries; vehicle insurance is one of them.

If you want to drive your car or ride a bike on Indian roads without being penalized for it, you have to follow traffic rules and insure your vehicle. Earlier, buying a vehicle insurance policy was an inconvenient task. Today, you can purchase a vehicle insurance policy under five minutes from your smartphone. Read ahead to know the major advantages of buying vehicle insurance online as compared to offline.

1)    Wallet-friendly Insurance

Online insurance policies are low-priced compared to those available offline. The reasons for this are three-fold. Technology enables better underwriting, which results in personalized pricing to an extent. Digital-first insurance companies have a lower Operational Cost; thus, they spend less on admin-related expenses and transfer the cost-advantage to the policyholder. And digital insurance negates the need for an agent, thereby negating commission. These three reasons, combined with other strategic initiatives lead to wallet-friendly vehicle insurance policies.

2)    Comprehensive Coverage

Comparatively, vehicle insurance policies offered online are better packaged than offline policies in terms of the premium charged. Digital-first insurers might add multiple features in their base plan to make it more attractive. For example, a Roadside Assistance Add-on might be bundled in a Comprehensive plan for no extra cost. You can research online to find a cover that meets your insurance needs as well as budget requirements.

3)    Zero-trouble Claims

Policyholders expect their claims to be settled in a quick and hassle-free manner. Technology enables insurers to expedite the claim process and make it convenient. Decades ago, it used to take months to settle a claim. Now, digital-first insurers are offering instant claim settlement. Artificial Intelligence, Robotic Processing Automation, and other advanced technologies are being utilized for providing zero-trouble claims.

4)    Total Convenience

You can insure your vehicle online at anytime from anywhere. Also, there is no need to complete lengthy documentation and submit a long list of documents. Online insurance is paperless; it is not just about buying, the overall service quotient is enhanced. Tech-enabled infrastructure helps online insurers to make the entire insurance life cycle of researching, comparing, buying, claiming, and renewing policies extremely convenient.

5)    Informed Decision Making

While buying vehicle insurance online, the power to choose a policy lies with you. You can check free quotes, compare plans, choose Add-ons, and purchase a plan that you like. You do not have to necessarily follow what the vehicle dealer insists or the insurance agent suggests.

Digital insurers’ websites have all the information you need in the form of articles, infographics, and product pages. The features and benefits are explained in an easily understandable manner. If you want to know the detailed terms and conditions, you can download the Policy Wordings of the respective policy from the website.

Ensure Continuous Coverage

 Note that an insurance policy is like a contract. And the terms are applicable as long as the contract is applicable. Therefore, no insurer will cover you in case of an expired policy. Thus, it is necessary to renew your policy in a timely manner. It is suggested to renew your policy well ahead of its expiry date so that you have ample time to review your coverage and the insurance company’s services during the policy period.

You can change your insurer easily at the time of renewal. For example, if you feel a digital insurance company is offering a vehicle insurance policy with an extensive coverage at an affordable rate, you can opt for policy renewal from that insurer. Whether you are buying or renewing vehicle insurance online, do go through the fine print to be sure of the coverage. This way, there will be no shocks at the time of claim settlement.

The online insurance purchase journey is designed in such a manner that there is no need for any sort of assistance. However, if you have a doubt regarding any clause, feel free to reach out to the insurance company’s customer service department on call or email.

Evolve with the world, choose digital. Insure your vehicle online for better coverage, low price, and exemplary service.

Views expressed in this article are the personal opinion of Animesh Das, Head of Product Strategy, ACKO General Insurance.


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