Is Buying Car Insurance Online Safe?
In recent years, digital transformation has swept across several industries in India, and the
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The Growth of Online Car Insurance in India
The Indian government's digitisation push and many initiatives by the Insurance Regulatory & Development Authority of India (IRDAI) to provide transparent services have driven online car insurance in India. Most insurance companies provide users with straightforward online policy issuance along with completely digital services.
Comparison websites offer users an easier method to review car insurance plans while reading customer reviews before concluding immediate purchases. Moreover, the quick and seamless process of online premium payments can be completed using several methods including credit/debit cards as well as UPI and net banking.
Benefits of Buying Car Insurance Online
Let's have a look at various advantages of purchasing car insurance online.
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Convenience
Digital platforms have enabled easy policy comparison. You can now purchase car insurance in just a few minutes without any paperwork. By knowing policy inclusions & exclusions, pricing, add-ons, and the claim process, you get a clear understanding of the insurer to make an informed choice.
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Affordable Premium
Since the online purchase of car insurance doesn't involve any intermediaries or agent commissions, it is often more affordable, with available discounts and promo offers.
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Hassle-free Renewal & Claims
The online car insurance process is entirely hassle-free; thanks to renewal reminders, digital documents, and app-based claim intimation.
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Immediate Access
Upon completing the premium payment, you promptly receive your policy document via email, giving you anytime access.
Buying Offline Car Insurance
Buying car insurance offline through an agent or from the insurer's branch is a traditional & tedious process as it involves a lot of paperwork. Additionally, it may be required that you visit the insurer's registered office or branch more than once.
Car Insurance Online Vs Offline: Key Differences
Many might wonder if buying car insurance online is better than offline. Well! You need to understand the key differences between the two before making a choice:
| Categories |
Online Car Insurance |
Offline Car Insurance |
| Purchase Process |
Involves visiting the insurer's or insurance broker's official website/mobile app, choosing a plan, and paying the premium online. |
Involves visiting the insurer's branch or meeting an agent, a lot of paperwork, and premium payment. |
| Pricing |
Lower as no operational costs are involved. |
Higher as it includes stationery costs, operational expenses, and agent's fees. |
| Plan Comparison |
Compare car insurance online with ease based on their premium, coverage, and benefits |
Difficult to compare plans by different insurers offline as it involves visiting their offices separately. |
| Convenience |
More as you can access the internet from the comfort of your home. |
Not very convenient as you will need to visit the insurer's office or meet an agent during working hours. |
| Transparency |
Higher as no middlemen are involved |
Lower as agents are involved in the process. |
| Influenced Decision |
Almost zero probability of getting influenced by an agent, as you can compare different plans online and choose the one that best suits you. |
You may get influenced by the agent and end up buying an expensive policy with lesser coverage. |
| Paperwork |
Involves minimum to zero documentation. |
A lot of documentation as you need to fill up multiple forms. |
| Customer Service |
24*7 customer support along with an online knowledge base. |
Available only during office hours. |
Is Online Car Insurance Really Safe?
Yes. Generally, buying or renewing car insurance online is safe. You just need to follow these practices:
- Regulatory Oversight: The IRDAI regulates all insurance providers in India, which are legally authorized to issue policies and handle claims, thereby offering a layer of protection to consumers.
- Data Encryption & Security:To protect user data and financial information, reputable car insurance companies and aggregators use secure payment gateways, SSL encryption, as well as 2-factor authentication.
- Quick Verification:You can verify your car insurance policy either using the VAHAN portal, which is maintained by MoRTH (Ministry of Road Transport and Highways), or directly from the insurer's website or app.
Potential Risks to Look for When Buying Car Insurance Online
Online car insurance purchases come with some risks & threats that individuals should watch out for. Have a look:
- Fraudulent Websites: Some Verify Insurer's Licence fake websites pose as insurers or aggregators to dupe customers and may collect payments without issuing real policies.
- Phishing & Spoofing: Cybercriminals send fake links via email/SMS to obtain your login credentials & payment information.
- Unauthorized Agents:Unlicenced agents or brokers present fraudulent price discounts over social media platforms.
- Not Reviewing Policy Wording:Individuals who do not thoroughly go through their policy wording could face hassle when making claims because they won't know policy exclusions or clauses.
Tips to Safely Buy Car Insurance Online
Have a look at these tips to safely obtain a car insurance policy via an online platform:
- Always Use Trusted Websites: While buying or renewing a policy, stick to the insurer's official website or an insurance aggregator approved by IRDAI.
- Use Official Websites: Always buy either from the insurer's official website or IRDAI-approved insurance aggregators. Moreover, look for the "https://" in the website's URL- it indicates a secure connection and data encryption.
- Verify Insurer's Licence- You can verify on IRDAI's website if the insurance company is licensed.
- Avoid Third Party Links: Never click on unverified social media links, WhatsApp forwards, or random ads. Always use the official website.
- Review Policy Details Carefully: Always thoroughly read policy inclusions & exclusions, claim process, and add-on covers.
- Secure Your Device: While making financial transactions, install antivirus software, update your browser, and never use public Wi-Fi.
- Check Insurer's Reviews: Before choosing an insurer, make sure to check its customer ratings & reviews.
Things to Do After Buying/Renewing Car Insurance Online
Ensure that you follow these steps after purchasing your car insurance policy through online platforms:
- Download your policy document and take the print.
- Verify your name, vehicle number, chassis number, policy tenure, IDV, and any add-ons that you opted for.
- Always keep your insurer's customer support number handy for any questions regarding claims or other services.
The Bottomline
The online process of buying or renewing 4-wheeler insurance is completely secure. The ever-growing digitalisation, better cybersecurity standards, and active IRDAI regulations have enabled car owners to safely & quickly obtain car insurance. By following the tips mentioned above, along with your due diligence, you can ensure a safe online car insurance buying experience.
