According to Business World, with FASTag toll compliance, e-challans and the mandate of third-party motor insurance, the insurance sector has seen a surge in India. Not only urban areas, but also rural audiences from Tier 3 towns are leaning towards bike and car insurance online over offline purchase. Substantial savings are considered the primary reason behind this shift.

What is the Difference between Bike Insurance Online and Offline Purchase?

The 11.8% growth in two-wheeler sales has also directly influenced bike insurance purchases. Reports suggest that, when it comes to buying bike insurance online, over 60% take place digitally. Here is why:

Feature	Online Purchase	Offline Purchase
Premium Cost	Lower (No commissions) makes it more cost-effective	Higher (Includes agent fees)
Comparison	Easy to compare multiple brands since you can visit the official website of the potential insurers to check the prices	Limited since you have to talk to insurers in person, it is both time and energy-consuming
Paperwork	Minimal or completely paperless	You have to undergo the hassle of manual form fill-ups and tons of photocopies
Issuance	Instant (Within a few minutes max)	24 to 48 hours
Query Resolve	Instantly, you can talk to the insurers and the customer executives whenever you have a query.	It takes time, as every time you have a query, you need to visit the insurer in person to get answers.
Customisation	High (User-controlled)	Low (Agent-driven)
Transparency	Completely transparent, you can see the applicable costs in real-time, eliminating hidden costs.	Sometimes involves hidden costs.

What Makes Online Insurance More Cost-Effective?

1. Zero Commissions

Since offline insurance purchases often involve a third party, such as an agent or dealership, a specific portion (10% or 20%) of the premium is allocated towards their commission. However, purchasing bike insurance online eliminates the need for a middleman, allowing you to save more.

2. Lower Operational Overheads

Insurers with a digital-first approach do not require a vast network of physical offices or a large sales team. In fact, they can utilise the power of the web to spread relevant information. It helps in reducing administrative costs for them. In a way, online policies benefit both policyholders and insurers.

3. Digital Policies Offer Exciting Discounts

Some insurers give exclusive online discounts to policy seekers who initiate policy purchase online. These discounts are applicable in the standard comprehensive plan, a standalone own damage policy, and even add-ons.

However, it is crucial to note that, since the Insurance Regulatory and Development Authority (IRDAI) determines the price of third-party motor insurance plans, there are no discounts available on such plans, even when you purchase this policy online.

4. Easy Policy Comparison

Comparing 10 different policies simultaneously is possible when you are researching online. Doing this enables policy seekers to make an informed decision at the best prices. This level of transparency also ensures you pay only for what you actually need, without any hidden charges.

5. Time Saving

Earlier, buying or renewing a policy was considered a significant chore that required time and patience. Buying a policy involved travelling, standing in long queues and time.

In contrast, purchasing a motor insurance policy online has not only eliminated the need for travel but also respects your time and helps restore your energy. Within just a few clicks and with a simplified documentation process, you can get a policy instantly.

When Must You Consider an Offline Policy Purchase of Bike Insurance?

Despite the plethora of advantages, including the cost-effectiveness of online policies, the offline policy purchase still holds value for a specific segment of riders. Such as:

Individuals uncomfortable with digital payments and online form filing might find online policy purchase insecure.
Some people believe that having a third-party or local agent during complex claim settlement makes it easier to interpret insurance terms.
For those with highly customised plans, it becomes difficult to navigate the insurer’s website. So, for them, offline policy purchase makes more sense.

Final Words

Now it is quite evident that, compared to an offline policy, online bike insurance is much more cost-effective. Not only does it allow you to save more money on the upfront premium, but it also helps you to avoid hidden costs and get the best insurance plan suitable for your vehicle through comparison.

You can simply take 10 minutes to research on an aggregator website or an insurer’s official online web application and choose a policy that fits your budget perfectly.