Is my policy still effective if I purchase a cheap auto insurance online?
Being highly ambitious, Anubhav plans his schedule judiciously to be as productive as he can on any given day. He works long hours during the weekdays and likes to relax and rejuvenate on the weekends by indulging in various activities like reading, cycling, etc. One thing he doesn’t like to do on the weekends is waste his time visiting stores for his varied shopping needs. He orders everything online. But is it safe for him to buy his car insurance on the internet? He would rather be sure before making a cheap auto insurance online purchase.
The Legal Aspect
Auto insurance is mandatory in India. As a basic plan, you can buy third-party insurance which will insure you against any third-party liabilities caused due to the insured vehicle. You may also choose to go for a comprehensive plan, which is an upgrade from the basic third-party plan and is recommended for relatively new cars. It insures your own car against damages caused due to various reasons like natural and manmade calamities, accidents, theft, etc., as well as covers you for third-party claims. The comprehensive plan is, of course, more expensive. You can buy an insurance policy for your vehicle in both online and offline modes.
Safety and Effectiveness
It is completely safe to buy an auto insurance policy online if it is from a trusted source. These policies have the same legitimacy and effectiveness as any other policy in the market. Usually, companies offer the same coverage and add-ons online as they do in their offline agencies, but at a better price – all the while being equally legitimate from a legal point of view.
Advantages of Buying Auto Insurance Online
Today, almost all insurance providers offer their plans online through their own websites and other online brokers such as IIFL Insurance. The thing that you must beware of is fraudulent websites. Here are some advantages of buying an auto insurance policy online:
- Compare Plans
The most exciting thing about making purchases online is the availability of a wide variety of products at your fingertips. You can be well-informed about various policies and their coverage, premium rates, etc., before making your decision according to your own needs. You can also easily compare the add-ons an auto insurance company offers, such as Zero Depreciation, No Claim Bonus, etc.
- More Economical
Just like everything else, buying insurance policies also costs less online. The main reason behind this is the reduced operational costs like office rental, miscellaneous expenditures such as electricity and stationery, agents’ commission, etc. This reduced cost helps companies to offer lower premium rates to their online customers.
- No Middlemen
Middlemen or insurance agents help you out while making insurance decisions when you visit a company. But while buying cheap auto insurance online, you don’t need an agent to help you out because you have direct access to all the information. This helps you save on the agents’ commission and eliminates the chances of being lured into policies that serve the agent’s interest more than yours.
- Zero Paperwork
Let’s admit it, nobody likes filling out lengthy forms for a simple procedure. While offline procedures require physical forms, which end up consuming time, buying an auto policy online is a boon because, besides being quick, it will usually involve minimal to zero paperwork. This procedure is time-saving, hassle-free, and also environment-friendly.
- Instant Issue
When you buy a policy offline, an auto insurance company will usually take time to manually enter the information in its systems and finally process it. This process may take anything from several hours to days. On the other hand, an online procedure is simple and transparent. You can enter your information yourself and be rewarded with the policy instantly, usually within a few minutes after you apply.
- Free Quotes
Another advantage of looking into cheap auto insurance online is that you can get free quotes of different policies to get an idea of the prevailing market rates almost instantly from the comfort of your couch.
Buying Auto Insurance Policy Online: Things to be Cautious About
There are various advantages to buying an auto policy online. However, here are a few things to keep in mind to be sure you are in the right hands:
- Too Good to Be True Offers
Counterfeit offers are scams that will lure you into offers that seem too good to be true. Although most email servers and browsers filter these phishing activities, they are still common. You may end up at a suspicious landing page that will ask you for your bank details, ultimately resulting in fraud. If you experience anything like this, do not ignore the red flag. Confirm the offers from other websites or call up the insurer’s customer care.
- Suspicious Policy Document
An authentic policy document would have clear information about the insurer and the authorized signature, details of the coverage, and the premium amount. If you find the policy document suspicious in any sense, do not be afraid to get in touch with the insurer, and if need be, raise a complaint at the earliest.
- Unnecessary Information
Usually, insurers boast of their easy purchase process online because they require only a very limited amount of information to issue you a policy. But fraudulent websites would ask you for unnecessary information like your personal details, bank details, etc., and that should raise a red flag. You feel the information requested is unnecessary, do not hesitate to double-check with the insurer.
In Conclusion
Online shopping has changed the way the 21st-century consumer behaves, and why should the insurance sector lag behind? As long as the source is legitimate, making a cheap auto insurance online purchase should only fill you with joy about having saved some money! Take your pick from the various plans and add-ons the insurers offer and be surprised by the deals you will steal and the time you will save.
