Is it Wise to Buy Car Insurance Online?

Modern consumerism has witnessed a shift from physical stores to online businesses and buying and selling portals. Most companies today prefer doing business online, partially or completely. This works for most industries dealing in consumer goods since it is easier to compare prices online, without visiting a number of different stores. It also allows the consumers to have it delivered to their doorstep, eliminating the need to lug the products home.

Car insurance online - image 45444On the contrary, for industries where the consumer mainly pays for the experience, like coffee shops and restaurants; it is not easy to outsource it online. Though it might sound like a silly comparison, but buying car insurance is also quite similar to eating in a restaurant. This is because a significant part of what you pay is for a learned agent who you know face-to-face.

To see if it is wise to purchase car insurance online, let us take a look at its pros and cons.

Pros of Buying Car Insurance Online:

  1. Online portals allow you to buy car insurance at any time of the day. Since online insurance can be brought round the clock, you do not have to dedicate some time from your busy schedule to purchase insurance between 9 and 5.
  2. Online insurance offers you instant access to the insurance documents. You can simply print the insurance documents, car insurance proofs, and ID card through the online portal once you complete your purchase.
  3. You can access any piece of information that you want through these online sources. The internet serves as a great resource for information and online insurance companies also provide simple to understand and necessary insurance information on their portals.
  4. Purchasing online directly through the company’s website eliminates the presence of a middleman – the insurance agent. Theoretically, this lowers the cost of insurance since the company doesn’t need to pay any sum of money to the agent.

Cons of Buying Car Insurance Online:

  1. You are unable to speak with an agent who can solve your queries when you purchase insurance online. You might feel the need for a real person who can offer you insights on your policy and verify its accuracy. Getting through an automated system to get tour queries solved can be very annoying and impersonal.
  2. Making a purchase without an agent would mean that you will be required to conduct thorough research on insurance online. Since you won’t have a dedicated insurance agent, you might find yourself speaking to different agents each time you call the company’s helpline number. Conducting your own research and dealing with the automated systems can be greatly time-consuming.
  3. If you have a dedicated agent, you will be able to avail some value-added services like filing of claims. At the time of distress, the agent can file the claim for you; saving you a lot of time and trouble. However, with online insurance, you will have to file the claim yourself.
  4. Online insurance is not suitable for someone who lacks sufficient computer knowledge. Filling forms for car insurance quotes and making claims requires some effort and knowledge of using the computer.
  5. Online insurance companies often offer only a dedicated car insurance policy. Due to this, the possibility of a multi-policy discount does not exist in such a purchase.

Final Thoughts

Purchasing car insurance online is a suitable option, but not for everyone. Before you buy a policy online, carefully weigh the pros and cons of an online purchase. You should always be sure of what you are purchasing when it comes to insurance.