When you contact the agent or browse through the online portals it is really very confusing and a tedious task to buy car insurance. As there is an advancement in technology and there are many online portals which provide insurance services the choice-making has increased. To purchase an insurance policy you have to either contact the insurance agent or visit the insurance company or their portal.
Doing good research and comparing the quotations from different companies, choosing the best add-ons, finalising on the final policy and then purchasing the insurance is the best practice. This is the lengthy process of buying insurance. Either you purchase insurance online or offline through an agent you have to go through the long process.
Here in this article we compare both the online and offline car insurance and present you with the difference between the two based on the following key factors.
- Cost Element
- Insurance Purchase process
- Transparency
- Settlement of claims
- Customer support
1. Cost Element
The expense of buying car insurance online is very less compared to the offline mode of purchase. When you purchase car insurance online you do not require an agent or broker. The expenses for commission and brokerage will not be charged to insurance policyholders when you purchase insurance online. Companies provide discounts, festival offers and other attractive plans which are not provided in the offline insurance. Prior to the purchase of the insurance policy, you can compare the policy online and offline. You can easily find out which gives the best deal.
When you compare insurance through offline mode you have to travel and meet different insurance agents or fix an appointment with them. When you travel you have to bear the travel expense, even if the agent visits your place you have to allocate your time for them. To make a comparison through online you can just get the full information by browsing the websites.
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2. Insurance Purchase process
The process of purchasing insurance through online is very simple and easy whereas in offline process you have to complete the paper formalities and submit. The advanced technology helps the user to get all the information online and the entire procedure is simple and gets completed through click at your fingertips. All the policies, terms & conditions, policy selection can be read online and completed. The payment process is online. You can avoid the queue and also skip completing paperwork of application forms.
If you are purchasing the insurance online then you should spend more time by calling the insurance agents arranging to meet them, discuss the policy, choose the right policy, pay and then finalise your purchase. The insurance policy documents would be sent to your address. All these procedures would take your time, around 2 to 3 days to complete.
3. Transparency
Most of the car insurance discrepancies arise by not reading the terms and conditions and signing the documents. The online portals list the terms and conditions of the insurance policy. The user can read the terms and conditions of the policy. The documents can be downloaded and saved for the reference. It also ensures that the policyholder has understood the terms and conditions and there is greater transparency through the online policy.
When you buy an insurance policy through an insurance agent then the agents tell the policy details and the customers sign the documents. To get a deal agents or brokers would mould their words to sell their policy and get commission. The documents are signed without reading the terms and conditions. Later when the policyholder applies for claim many unknown aspects will be realised. It is best advised to read all the documents, terms and conditions and sign whether it is online or offline. If you are buying insurance policy through an agent then ensure that you are buying through a reliable source.
4. Settlement of Claims
Many insurance companies are operating through the online mode. The claims are settled through the online process which has become the most popular and easy mode of making settlements. The companies provide a platform to file their claims online and also check the status of their claims. The reimbursement process is faster and efficient through the online system. The payments are done through online, the filing, authenticity verification is expedited and claims are settled within the timelines.
In offline mode of claim settlement at every stage the policyholder has to contact the agent or the dealer for settlement of claim. A personal visit may be required to submit the claim documents. Other documents may also be required such as policy documents, registration documents, insurance papers and others are required. The time required to process claim settlement through offline mode is very lengthy.
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5. Customer Support
The customer support through the online is available 24 hours a day from the insurance companies. A committed and dedicated team of professionals provide the services to the customers. All queries related to the insurance policy are answered by the customer representatives.
The procedure in offline insurance purchase is limited to the agent or broker. According to the availability of the agent you have to contact them and your questions will be answered. You can either visit the insurance office and get services from the representatives. The details will be collected at the office and your application will be processed.
Conclusion
Buying car insurance is not an easy task, it requires a lot of research and analysis to finalise on the insurance that you want to buy. If you are planning to buy a car insurance policy and thinking which one is the best choice either purchasing it through online or offline then the best way is to start researching through the online. Buying insurance online is very easy and convenient. The process of signing the insurance, submitting the documentation, reading the terms and conditions, comparing different insurance policies, selecting the right insurance policy and finally purchasing the insurance policy. All these steps can be done online anytime at your convenience.
About the author
Vinay Kumar Goguru is a finance professional with more than 8 years of diverse experience as a researcher, instructor and Industry work experience with both public and private entities. Prior to MyMoneySouq, he spent 6 years in Berkadia, It's a commercial mortgage banking company. He has a "Doctoral Degree in Commerce" and two master's degrees with a specialization in Finance, one as Master of Commerce and other as Master of Business Administration. He has written several articles on personal finance, published by different International journals. He loves traveling, reading and writing is his passion. He has a dream of writing a book on his favorite finance topics.
