Are there risks in buying home and personal insurances online?

It’s true that making purchases online is convenient and easy for anyone who leads a busy life. However, when it comes to something as important as your home, assets, life and business and needing insurance cover to protect them, there are a number of risks associated with buying insurances online verses taking the personal approach – and using a good local insurance broker.

5 risks in buying insurance cover online

We talked to a number of insurance brokers and clients who have experience with what happens when you buy insurance services and products online. The following five risks came up most often, so we are sharing them with you.

1. Security

We all know that security issues occur from various transactions and interactions online.  Cyber security is one of the biggest risks you take with your information. Even with strict protocols in place, there are still those out there who are unscrupulous enough to illegally access and use your confidential information. We aren’t trying to scare you, but there are times when it’s better to be safe than sorry.

2. Expense

Be aware that obtaining online quotes is one thing, but going ahead with the purchase is another. While the quote might seem low and be acceptable to you online, there could be fees and costs that were not covered online when you were making your purchase. You should have an independent insurance broker to consult with to ensure you are getting the best quote with no hidden costs.

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3. Gaps in cover

Did you know that if you buy insurance online, there is a chance that you will not obtain the proper cover for your specific situation? Gaps in your insurance cover can happen and you won’t even know it until something happens and you need to use it. With an insurance broker they will specifically take the time to understand you and ensure you are covered for the absolute essentials that you need to protect yourself. This also means saving you money on the things you don’t need.

4. Fraud 

Unfortunately, it’s common practice for hackers to obtain your information then use it to get credit cards, loans, and access your financial accounts. While this problem is less common now than in the past due to privacy and security measures, it still exists and there is no way to know if it will happen to you.

5. Impersonal

Buying insurance online is an impersonal process. And just think about it, if an incident does occur, do you really want to be dealing with a customer service centre that knows nothing about you? When you use an insurance broker they will specifically take the time to understand your situation and risks and help customise a solution that is right for you.  Some will even meet you in personal. And in the instance of an incident occurring they will be the person you contact to help ensure your claim is actioned accordingly.

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