Comparing online and offline insurance
5 January 2019 Reading: 7 min Views: 1 080
Insurance is both a complex and an interesting way of providing for unforeseen events that can help restore a business or property as quickly as possible in difficult times, but it requires continuous analysis of legislation and a fluent command of the fine points of insurance.
Pros and Cons of On Line Insurance
We consider only compulsory types of insurance for:
- individuals – motor third-party liability (MTPL);
- legal entities – several types of insurance, the simplest of which is also motor third-party liability (MTPL);
Voluntary types of insurance involve a great many nuances when a contract is concluded, which makes it impossible to conclude an insurance contract online efficiently, for example:
- inspection of the property;
- a detailed application form and questionnaire;
- studying the laws governing the type of insurance;
- detailed knowledge of the insurance rules;
- actions to be taken when insured events occur, etc.;
The author's questions
Before looking at the pros and cons of online insurance, I would like to clarify some important points and ask a few questions.
In effect, online insurance shifts all responsibility for correctly arranging the insurance onto the consumer, because the consumer, or Policyholder (by the way, were you familiar with the term Policyholder before?), has to fill in and pay for the insurance on their own, perform all the actions listed above and, of course, have a professional understanding of laws, rules, documents, questionnaires and instructions; otherwise this may lead to a refusal of payout in the future.
And now the questions – of course you must answer them honestly, since you are answering to yourself:
- Do you know which laws regulate insurance activity in your country?
- Have you read the specific law governing the type of insurance you are buying?
- Will you be able to give yourself professional legal advice when an insured event occurs?
Comparison table of the pros and cons of On Line insurance
only compulsory types are compared, as voluntary types cannot yet be purchased online
| PROS / + | - / CONS |
| | |
| for Individuals | |
| buying a policy at any convenient time | the server may fail or the website may be unavailable |
| no risk of losing the original policy | if the server is unavailable, it will be impossible to verify that insurance is in place |
| | there is no competent person to explain all the terms of insurance |
| | when an insured event occurs, there is no contact person who can advise |
| | loss of data due to a server error |
| | no one to answer questions that arise at the time of purchase |
| | data entry errors are possible, which may result in a refusal of payout |
| for Legal Entities | due to the specific nature of legal entities' activities there are only cons for them |
| | a great deal of time is needed to arrange insurance |
| | high risk of the policy being arranged incorrectly |
| | their insurance volumes allow them to use the services of professionals (agents, brokers) |
| | no trusted contact at the insurance company for prompt advice |
For the most curious: a detailed description of the + / -
For On Line insurance
Buy insurance at any time of the day or night: Perfectly suited to today's busy lifestyle, online insurance can be available at all hours of the day.
Gone are the days when the only time you could buy insurance was between 9 am and 6 pm. Convenience is a major advantage of online insurance.
No waiting for insurance documents: Although the option to print insurance documents online is becoming common among most insurance companies, most of them do not offer an ID card at the time of an online purchase.
Online motor insurance certificates can be printed at the moment of purchase.
Get answers to your insurance questions online: The Internet is becoming an excellent resource for insurance information. You can find an answer online to almost any insurance question you may have. Online insurance companies do a good job of providing sensible and understandable insurance information.
Against online insurance
You have to call an 800 number to speak to a person: Never underestimate the importance of talking to a real person when it comes to your insurance; the more complex the type of insurance, the MORE IMPORTANT personal advice becomes.
From time to time problems and website failures occur, and you need a real person to check that your data is correct. Dealing with an 800 number is not necessarily terrible, but it is impersonal and usually annoying if you have to go through an automated system at a critical moment.
You need to be your own insurance expert: Without an agent, you will have to research the answers to your insurance questions yourself. The other option is to call the online insurance company's 800 number and get an answer that serves the Insurance Company's interests.
Online insurance companies do have agents (you can also hire a broker) who answer your questions, but you have no dedicated agent, so you will probably speak to a different person every time you call. The experience of a personal insurance agent can save a lot of time, and therefore money that could be earned in that time (and, of course, when an insured event occurs). Researching insurance questions on your own or dealing with a Call Centre can take a lot of time. Understanding your coverage and knowing about insurance is important, so be prepared to spend some time looking for insurance information and reading between the lines if you buy your insurance online.
INSURED EVENT: At the time of a loss, it is comforting to have a familiar voice helping you through the process of filing claims and applications for compensation. Many insurance agents file claims on behalf of their clients and assist with the paperwork.
With an online insurance company, you will have to file the claim yourself. Claims are not difficult to write up if you know the law professionally or have court or legal practice, but in a moment of stress it is nice and convenient to have someone do this work for you.
You must be computer-savvy: It takes quite a bit of effort to fill in all the information required for online insurance. If you are not comfortable working on a computer, do not even think about buying insurance online. Let an agent do the work for you.
Individual insurance does not offer discounts: Most online insurance companies do not offer property insurance or other types of voluntary insurance. If you do not own real estate or property and do not need motor CASCO, cargo, tenants' insurance, etc., this will not really affect your rates. However, if you are a property owner, you will miss out on an individual discount.
Buying insurance online can be a good option, but it is not for everyone. Take the time to weigh up the pros and cons to find out whether an online insurance policy is right for you. Get as much information as possible when buying insurance so that you can make an informed decision.
Insurance is a serious business, and like any business it is aimed at making a profit, so it is important to understand what you are buying and on what terms.
IMPORTANT !!!
You can contact an agent and pay to the insurance company's account, in cash to the agent or at the insurance company's cash desk, or by transfer to a card, and still receive your policy online, with all discounts and benefits, to your e-mail.
We will be happy to provide you with a free consultation on any insurance matter.
