5 major differences between online and offline ways to buy car insurance


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The year is 2019. Everything is now instant. Millennials dominate the digital world. Large companies channel their resources to meet their needs. The smartest minds swim in an ocean of data to gain insights to get people to click the Buy Now button. In the midst of all this, the customers are the biggest beneficiaries of this online revolution.

The insurance industry is in the midst of this digitization-driven paradigm shift. Online insurers are changing the game when it comes to auto insurance. That’s the impact that traditional insurers are also creating an “online auto insurance” strategy and not just relying on offline ways.

Below are 5 major differences between online and offline methods of buying auto insurance.

No documentation

Filling out long forms is nothing short of a nightmare. The offline process involves a lot of forms. While the online process requires no documentation. Yes, there is an online form, but it consists of basic data, that’s all.

Save time

We live in an era where time is money. And time saved is money saved. When you buy a policy online, you can complete the purchase process in minutes. Not only that, you can even get car insurance online at midnight! it is not time bound.

The offline process is time consuming. To purchase car insurance, you must go to the branch of the insurance company. Even if an agent is involved, the agent will come to your home at a predetermined time and then the process will continue.

Low prices

Offline insurance requires physical offices, staff and resources to keep things running. All this increases operational costs. However, with online insurance, digital insurers do not have physical sales offices. The manpower is also less. All this means less operational costs. This is one of the reasons why online policies are low priced. This has no influence on the coverage offered.

More control

In an offline scenario, you come into contact with an executive or an agent who sells you the policy. The key word here is ‘sell’. Chances are you will be sold something that you may not need. For example, an unnecessary Add-on. However, with car insurance online you ‘buy’. Control is in your hand. No agent is involved. If you’re having trouble, pick up your phone and speak to the call center managers who will give you all the information about the policy’s inclusions and exclusions so you can make an informed decision about buying auto insurance online.

Easy to compare

Just imagine going to the branch of several insurers to know your auto insurance quote and compare policies manually! This is certainly an inconvenient way to insure your car. It becomes very easy to compare policies online. There are also several web aggregator sites that will help you compare policies. Even comparing the policies individually is not very online. You can easily do this using the auto insurance calculators available on the website. Most insurers have included the calculator in their purchase path so that once you are comfortable with the quote and policy, you can buy it on the spot.

Renew car insurance online

Taking out car insurance once is not enough. It needs to be renewed from time to time. And because your insurer may already have your details, renewing auto insurance online is easier than purchasing it for the first time. Do not forget to renew your policy in time and always drive safely.

(By Animesh Das, ACKO General Insurance’s Head of Product Strategy)

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