By Paras Pasricha

Motor insurance is mandatory, but that shouldn’t be the only reason to buy one. It’s a safety net that can protect you against accidents, damages, and financial liabilities.

But the process of buying motor insurance can leave room for mistakes, especially when it comes to the traditional offline route. It can lead to underinsurance – you may have an insurance plan on paper, but when it comes to filing a claim, it may fall short.

Although the traditional offline route may seem convenient because of the familiarity factor, it can cost you money and time, and some mistakes can happen while purchasing motor insurance offline.

Paying more than needed

Because of operational costs as well as agent fees, you can end up paying additional charges, which can be avoided by purchasing a policy online (as online platforms cut out these expenses). Buying online (either directly from insurance companies or via online aggregators) can get you better deals at lower prices, without compromising your coverage.

Not comparing plans

Often, people don’t compare different policies offline, as most buyers purchase policies that their agents suggest. Also, it’s difficult to compare plans in the offline mode as you would need to contact different insurance providers separately. It’s also seen that offline buyers do not explore other options after purchasing a plan and tend to stick with the same insurer they have always used. Because of this tendency, they may miss out on a plan with better features and lower cost.

However, it’s easy to compare different policies when you buy online – as you have access to dedicated comparison tools that let you analyse features, prices, and coverage.

Depending on agents

Blindly relying on agents can backfire, because the goal of most agents is to sell policies. While some agents may look after your interests, others might focus more on their commissions. On the other hand, you are in control while buying insurance online, and pay only for what you need, without unnecessary frills.

Claim settlement ratio

Offline purchases make it difficult for you to determine the claim settlement ratio of the insurance company accurately. It’s important because, after all, it is the insurance company that has to uphold your claim eventually. With online platforms, checking the company’s ability and credibility with respect to claims is easier. You can verify the insurer’s claim settlement ratio, service quality, and reputation.

Time is money, and you could end up wasting both when you purchase a motor insurance policy offline. You may need multiple visits to the insurance office or agent, a pile of paperwork, and a longer processing time. On the other hand, online purchase of motor insurance is quick and hassle-free. You can do it from the comfort of your home without any paperwork, without unnecessary delays, and often by paying lower premium.

The author is head, Motor Insurance, Policybazaar.com

Views expressed are personal.