How to Buy Motor Insurance in India: Online vs Offline

5 min read | Updated on May 27, 2025, 14:25 IST

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Ms Trivedi is a 54-year-old government school teacher and an epitome of ‘old school’ processes. She has never used UPI and transacts all her banking needs at her branch, as she does not have an online banking account. She issues cheques for payments and asks neighbourhood kids to pay her utility bills. She has an extreme dislike for the latest technologies, considering them ‘unsafe,’ and often shares news of frauds on her WhatsApp (yes, she has no problem using WhatsApp).

She is quite diligent otherwise, but her scooter’s insurance was about to expire in the next 12 hours, and she missed all her reminders (which she duly noted in her diary). When she told this to one of her colleagues, he simply took out his smartphone, entered the vehicle details and paid the premium. She got continuous coverage, and no inspection was ever required. Ms Trivedi was impressed by this feat but was still not completely convinced.

As the popularity of digital technology in various sectors has continued to rise, people like Ms Trivedi would ask: How should you buy your policy: online with a few clicks or offline through an agent? Each option has its pros and cons. You must choose the option with which you are most comfortable transacting. However, you should have a thorough understanding of the advantages and limitations of buying motor insurance online and offline, and based on that, you must make an informed decision.

Buying Motor Insurance Online

With India having one of the highest smartphone penetrations, most of the utilities and financial services are now available online. The payment processes have become more secure, and with UPI, digital payments have become easier and more reliable than ever. The process of buying motor insurance online is quite straightforward. You need to visit the website or app of a reliable insurance platform and provide your vehicle's details. You will get quotes from top insurance companies, which you can compare and ask questions about.

Here are the most critical benefits of buying insurance online:

Convenience

Buy or renew your policy anytime, anywhere, without needing to visit a branch

Easy Comparison

Online platforms allow you to compare multiple insurers on pricing, coverage, and claim settlement ratios.

Faster Issuance

Get instant policy documents delivered to your email, no paperwork delays.

Cost-Effective

Online plans are often more cost-effective as they eliminate the need for middlemen and commissions.

However, there are a few potential drawbacks to buying insurance online, especially for those new to purchasing insurance. Selecting the right add-ons can be challenging, and understanding the terms can be difficult without expert guidance.

Buying Motor Insurance Offline

Let us be honest, we all know people who are scared or even paranoid of the thought of online shopping and ecommerce. Buying a motor insurance policy online is out of the question for many because of the mistrust of online processes. However, there are numerous benefits of buying motor insurance online, due to which it is the most preferred mode of Indian customers:

Human Assistance

A dedicated agent can guide you through policy selection, explain technical terms, and recommend suitable add-ons.

Ideal for First-Time Buyers

If you’re unsure about insurance jargon or need a walk-through, offline support can be very helpful.

Trust Factor

Dealing with someone in person often builds more trust, especially in smaller towns and for older customers.

However, there are a few disadvantages that you should keep in mind if you are planning to buy motor insurance offline:

Time-Consuming

Requires appointments, visits, and paperwork, making the process much slower than online.

Limited Comparison

Agents usually represent one or a few insurers, restricting your ability to explore broader market options. There is no quick way of comparing the benefits and premiums as the agent does not use too much technology.

Potential for Higher Costs

Premiums may include agent commissions or service fees which are eliminated in case of online motor insurance.

Online vs Offline: Key Differences

Here is a table depicting the key differences between online and offline motor insurance:

Basis	Online Motor Insurance	Offline Motor Insurance
Accessibility	24x7 access from anywhere	Requires a visit to the insurer or agent
Guidance	Limited; mostly self-service	Personalised support from an agent
Time	Instant purchase and renewal	Slower, involves paperwork
Comparison	Easy to compare multiple insurers	Limited to the agent’s tie-ups
Cost	Generally cheaper, no middlemen	Can include agent commissions
Documentation	Digital	Physical and Digital

Online insurance works perfectly for people who prefer speed and control on the process. On the other hand, people who require human interaction and have more complex queries can prefer offline insurance.

Which One Should You Choose?

There is no definite answer to this. Online motor insurance has obvious advantages when it comes to speed, comparison, and cost. However, offline motor insurance can be preferred if you’re a first-time buyer, unsure about coverage, or looking for more complex policies.

Summing up

Both methods are quite popular among motor insurance buyers. Whereas offline vehicle insurance remains the choice of majority, the overall popularity of online insurance has also increased due to the availability of digital platforms and ease of KYC and payments. The key is to choose what aligns best with your comfort, knowledge, and time.

FAQs

Can I buy motor insurance completely online without any paperwork?

Yes, most insurers now offer fully digital policies that require no physical paperwork.

Is there a difference in coverage between online and offline policies?

No, the coverage remains the same, only the buying process differs.

Is it safe to buy motor insurance online?

Absolutely, as long as you’re using verified insurer websites or IRDAI-approved aggregators.

Can I renew my existing offline policy through an online platform?

Yes, you can switch channels anytime during renewal.

What documents do I need to buy motor insurance offline?

Typically, your RC, previous policy (if any), identity proof, and vehicle inspection (if required).

About Author

Upstox Desk

Team of expert writers dedicated to providing insightful and comprehensive coverage on stock markets, economic trends, commodities, business developments, and personal finance. With a passion for delivering valuable information, the team strives to keep readers informed about the latest trends and developments in the financial world.