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Pros and Cons of Buying Car Insurance Online 

9 min read

Owning or leasing a car and getting an insurance cover for it goes hand in hand because of legal requirements. Even if we skip on the legal bound; it would be foolish to get on the roads without any sort of protective cover. Hence, not buying car insurance is not an option for any car owner. 

Like most of the products and services; you have multiple avenues for purchasing car insurance. But thanks to the internet, the online purchase seems the best and the most convenient way of purchasing car insurance. Unfortunately, many of us get cold feet at the prospect of purchasing a serious thing like insurance online. To ease our doubts and get a clearer picture; we list down a few pros and cons of buying car insurance online. 

Pros of Buying Car Insurance Online 

  • You can buy 24/7

This is perhaps one of the biggest advantages of purchasing insurance online. You have the flexibility of researching and buying the policy anytime and anywhere, even if it is the middle of the night. 

  • Plethora of options

When you purchase car insurance the traditional way, you are limited to the agent and the company for which he sells the insurance policy. For different companies, you need to get in touch with a different agent. This makes your choice, a complicated matter. But you get almost all options under one roof when you search online. This helps save you both time and energy.

  • Easier and faster to choose the best fit

Unlike the traditional way, you can easily compare and contrast various available car insurance policies online with just a few clicks of a button. This helps you choose the best policy for your car in record time. The speed and ease of making the correct decision in this way are remarkable and simply not present in the traditional way. 

  • Online car insurance policies are cheaper

We all know agents get a commission for selling us car insurance. This commission is included in the premium amount we pay to the insurer. These agents are absent in online policy and we are buying a policy directly from the company. Hence, we can save on this agent’s commission as the company gives it to us as an online discount. We are thus able to get a cheaper policy with the same benefits compared to the traditional way. 

  • Faster processing of the application and issue of the policy document

We have already discussed how time-saving it is to buy insurance online. You also have reduced paperwork and much faster processing of your application. Thus, you get your policy document delivered to you faster compared to the traditional way. 

Cons of Buying Car Insurance Online

Like all things, purchasing Car Insurance Online comes with its own set of disadvantages and limitations. Few of them are:

  • It’s hard to find a human support staff

In an online insurance portal, you are required to feed in a few vital information after which you get a response on your screen or the information is sent to your email. It can be smooth if you know how your policy works but if you are a newbie and have some queries or doubts; you will face difficulty in getting your queries resolved. 

Most insurance companies have their customer support helpdesk. You can get in touch with them to get your queries resolved but it is dicey. The representative you are talking to might not be an expert to accurately answer your queries like an agent can. Hence, you might be left in a dilemma. 

  • It’s difficult to explain your circumstances 

Your policy needs are not always straightforward and you might require some extra hand-holding. Online purchase has fixed and neatly constructed categories which may or may not suit your unique personal circumstances. Hence, you might feel lost. In that scenario, it is best to contact an insurance agent and get all your queries and doubts cleared before you go ahead with the purchase of the policy. 

  • Communication is technology and system dependent

While transacting online, you always have the risk of losing the communication channel of miscommunication happening. You need to exercise extra caution and care while feeding in critical information. Sometimes the picture of the car provided also emerges different from the real car. This can lead to your claim, getting rejected. Hence you need to be very cautious. 

  • Data theft and privacy issues 

Cyber-crime, identity theft, hacking of sensitive data are inherent risks associated with any online transaction. Moreover, you might also be sold a fake insurance policy if you do not know the tips and tricks of verifying the authenticity. Hence, you are required to exercise as many security layers as possible to protect yourself. 

  • Harder to bundle

We all know that bundling multiple insurances gets you an appreciable discount. You can procure this with an agent but it might not be possible online. Even if it is possible, the process might be complicated. 

Wrapping up 

Both the online and the traditional way of purchasing car insurance has its pros and cons. You need to decide the best avenue depending on your unique circumstances to emerge a winner. 

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