What percentage is typically applied to online customer policies for discounts?

Online customer policies often come with discounts as insurers aim to encourage more customers to purchase policies via their websites. A common practice is to offer a discount of approximately 20%. This percentage reflects the cost savings that insurers experience by reducing operational costs associated with processing insurance applications online, such as fewer agents needed and lower administrative overhead.

This strategic pricing aims to enhance competitiveness in the digital marketplace while simultaneously providing a financial incentive for customers to choose online purchasing options. The 20% discount is fairly standard across the industry, making it an attractive option for consumers looking to save on insurance premiums.