When buying any item, two things generally come to mind. Cost and convenience. While some buyers look exclusively for the best prices, others are willing to spend a few extra dollars for convenience.
For example, insurance is something that would have required you to visit a brokerage, provider or financial institution in the past. However, you can now buy various forms of insurance online and you might even find a better price than you would in person.
Below we’ll discuss whether buying insurance online is the cheaper way to go, to help you make the best decision for your lifestyle.
Article Summary – Top Things You Should Know When Buying Insurance Online
- Car, home and life Insurance can be bought online through many different providers including Sunlife, Manulife, Insurely, MyChoice, SquareOne, and most big banks.
- Online insurance is generally cheaper due to the lack of commission and service fees.
- You can get an instant quote from most online providers.
Can You Buy Insurance Online?
Yes, nowadays you can any type of insurance online including car insurance, home insurance and life insurance. Online insurance is preferred by many Canadians because it’s often cheaper and more convenient.
Where Can You Buy Insurance Online?
Buy Life Insurance Online
Buy Home & Tenant Insurance Online
Buy Travel Insurance Online
What Do You Need To Buy Insurance Online?
As it would be in person, you’ll need to fill out various personal and financial details to get your actual premium and purchase your insurance policy. These details can include but aren’t limited to your:
- Name and address
- Birthdate and citizenship status
- Social Insurance Number (SIN)
- Occupation
- Financial status (income, debts, etc.)
How Do You Buy Insurance Online?
Buying insurance online is typically simpler and less time-consuming than in person. All you have to do is:
1. Compare Providers
Don’t go with the first brokerage or provider you find. Take time to make sure your insurance source is a trusted business offering the best policies and premiums for you.
Once you’ve found a reliable provider, you should be able to get a cost estimate for each product or program somewhere on their website. Many sites have a free quote calculator that you can use without an account.
2. Apply With Your Chosen Provider
If you’ve decided that this provider/broker is right for you, applying for a policy should be relatively easy and only take a few minutes. You’ll need to provide information general information like your name, address, SIN, and some financial information.
Keep in mind that every insurance provider requires different data to give you a proper quote. For instance, life or medical insurance may require you to input more sensitive information, such as any health conditions you have. However, with auto insurance, your driver’s history and vehicle will be more essential.
3. Buy Your Policy
Once your details are filled out, the provider’s quoting engine should offer you several policy options. Afterward, you just have to decide which one you want and start making payments with your debit or credit card.
4. Keep Records
Soon after your first payment is made, you should receive an email that details your account information and policy terms. Be sure to print or keep digital copies of these documents for future use.
Should You Buy Your Auto Insurance Online?
Auto insurance is necessary for thousands of Canadians. It’s also one type of insurance that plenty of people buy online, which can be highly advantageous because:
- You can easily research many different insurance providers and policies
- You can sign up, buy a policy or file a claim 24/7 from the comfort of home
- Binding a policy only takes a few minutes or hours (instead of days/weeks)
- You’ll have instant access to all documents from any device
- You have (almost) full control over your account and policy
Is It Cheaper To Buy Life Insurance Online?
Guaranteed-issue life insurance is a common type of life insurance sold online. These policies can be slightly cheaper initially since less underwriting is involved. Plus, your health won’t be as important during the approval process.
That said, guaranteed-issue policies are usually smaller (often only up to $25,000) and can lead to higher costs because riskier clients can qualify. Even if you’re young and healthy, you could end up paying the same amount as someone old or unhealthy.
Can You Buy A Underwritten Life Insurance Policy Online?
Underwritten insurance can be bought online or with an insurance agent. When you buy such a policy online, you’ll generally have fewer questions to answer than applying in person. The exact length of your application will depend on your health, age and the amount of insurance you’re applying for.
What Can Affect My Online Home Insurance Quote?
Every home insurance provider uses a system to calculate how much home insurance you qualify for. However, generally, your quote will be based on factors like:
- The state of your finances and credit
- Where the home is (neighbourhood, natural disaster risks, etc.)
- The size and condition of the house/property
- What emergency services are nearby (fire & rescue, police, etc.)
- What safety and security hazards the home has (pool, fireplace, etc.)
Pros and Cons Of Buying Insurance Online vs. From An Agent
Different insurance providers offer different policies. Since there are so many brokers and agencies in Canada, research is the key to obtaining the best deals.
Pros of Buying Insurance Online
- Cheaper – One of the main selling points of online insurance is the cost. Most online insurance providers have fewer service or commission fees.
- More Options – Instead of a long phone conversation, you can research many providers, and then get a few basic quotes from onsite calculators within the same day.
- Easier Approval – While you must provide the standard details, much of the process is automatic.
- Convenient – If you have internet access, you can buy insurance anywhere in the world, any time.
- More Control – When purchasing insurance online, you have control over what you buy and how you’ll be making payments.
Cons of Buying Insurance Online
- Less informative – Online insurance is generally “what you see, is what you get”. You may not learn everything you need or get all your questions answered.
- Less Coverage – The fact that it’s easier to qualify can be a detriment. Because profiles are automatically processed, you might not get all the coverage you wanted right away.
- Lack of Help – It may not be the best idea to buy online insurance if you’re less familiar with the process. If you do need help, it can be a pain to get an agent on the phone or hear back from them by email.
- Fewer Options (Sometimes) – Online, you can only pick the options on a website, whereas a good agent or broker might find you a better deal on a policy that isn’t offered online.
Pros of Buying Insurance In-Person
- Better Service & Information – A professional can usually give you a more accurate quote and answer your questions better than a website.
- More Possibilities – If you establish a good relationship with your agent or broker and continually purchase insurance through them, they might make you a preferred client and offer you even better deals in the future.
- Tighter Security – Online, it can be difficult to tell if a provider is legitimate or offering the best prices, whereas a real agency will have an address and business credentials to confirm or report to the authorities.
Cons of Buying Insurance In-Person
- Upselling – Agents have to push their company’s products to prospective clients. Even brokers may only do business with specific providers.
- Limited Options – It can take time and effort to speak with an agency, so you might be tempted to stay with them, even if their products aren’t great.
- Less Convenient – You can buy or cancel insurance whenever you want online. Whereas with an agent you’ll have to book a time to talk to them.
- Longer Wait Times – It can sometimes take days or weeks for your policy documents to be sent. However, you should have near-instantaneous access to an online insurance policy.
Bottom Line
When it comes to purchasing the best insurance policies for your lifestyle, research is key. Online insurance providers offer policy calculators and comprehensive questionnaires and allow you to compare multiple offers. All of this can make finding an affordable policy more convenient. Just keep in mind that if you need a more complicated policy or simply want to speak with a human, then getting on the phone with multiple insurance providers might be the best option for you.
Buying Insurance Online FAQs
Is home insurance mandatory in Canada?
How accurate is an insurance quote?
How to get the cheapest insurance?
- Reduce your coverage
- Compare quotes
- Bundle policies
- Improve your credit
