When you relocate to another state, there are many things to keep in mind like packing, moving, finding a new house, etc. Apart from the range of challenges posed by this move, you will also have to manage certain things in your car insurance while shifting to a new state. In this article, we will share five things that you need to take care of while relocating car insurance to another state.
Before we start looking at the things that you need to take care of while relocating your car insurance to another state, let us answer one question asked by most car owners relocating to a new address:
Do I need to change car insurance if I move?
The answer is NO. You do not have to change your car insurance if you relocate within India. You can definitely look at fresh car insurance quotes to upgrade or modify your coverage, but it is not required to change the motor insurance policy when relocating. However, you will need to update the cover and other details as described below.
1: Upgrade the cover
The cover offered on four-wheeler insurance depends upon your geographical location. Hence, the cover that works for one location might not work at another location. Therefore, when you relocate, it is important to reassess your insurance needs and upgrade accordingly. Also, different states can have different insurance requirements. Ensure that you meet the said requirements.
Let’s say that you are relocating from a rural to an urban location. This move increases the chances of accidents, theft, and changes the way you use your car. Therefore, you will have to upgrade your policy to suit your changing requirements.
2: Update your new address
If you are relocating to a new state, then you need to ensure that you inform the insurance company about your new address and contact details. You might have to submit certain documents as specified by the insurer. This can help the insurer offer uninterrupted services to you.
It is important to update your address as one of the factors affecting your car insurance premium is the geographical location. If you move from a rural area to a metropolitan city, your premium will go up, and vice-versa. Not informing about the move can lead to issues during claim settlement. It might be considered as withholding of information and your claim might get rejected.
3: Re-register your car with the RTO
If you are moving permanently or for an extended period (12 months or more), then you need to register your car with the Regional Transport Office (RTO) of the state where you are relocating. This changes the registration number of your car that needs to be updated with the insurance company. You will have to first obtain a No Objection Certificate (NOC) from the RTO of the state that you were previously residing in.
If you are moving temporarily, then you don’t have to re-register your car. A NOC from the RTO of the previous state to the new one will be sufficient.
4: Transfer NCB
A No Claim Bonus is a discount on premium offered by companies offering car insurance in India to car owners who don’t file a claim during the term of the policy. The discount increases for every consequent year that the car owner does not file a claim and can go up to 50%. When you relocate to a new location and upgrade your policy, the NCB benefits can be transferred to the new policy. If you choose to change your insurer or change the policy, the NCB accumulated on the previous policy can be transferred.
5: Look for Network Garages near your new location
Most car insurers offer cashless service or reimbursement after the repairs are done via their network garages. Hence, when you move to a new location, look for network garages near your new address. If the insurer does not have a network garage around, then you can either consider changing the insurance company or look for a local garage and request reimbursement from the insurer later (provided the insurer permits it).
Bonus Tip
If your car insurance policy is expiring close to the date of your relocation, then you can explore new insurance companies. There are some companies that focus on specific states or regions and offer discounts to local car owners. Since NCB can be transferred, you can look for car insurance quotes from different providers to choose the best one. Leading car insurance plans like the Tata AIG car insurance policy offer a free car insurance calculator online that can help you calculate the cost for the customized policy required by you.
Some Questions
Q1. Can I transfer my car insurance from one state to another?
You don’t have to transfer your car insurance if you are relocating to another state in India. You will be required to re-register your car with the RTO of the new state if you intend to stay there for more than 12 months. Also, you will be required to upgrade your policy and update your details with your existing insurer.
Q2. What happens if I don’t change my car insurance address? Does Change of Address affect car insurance?
The address registered with the car insurance company helps it to send any physical documents to you. While most documents are sent online, sometimes, the insurer will need to send physical documents that can be beneficial to you. Additionally, your geographical location affects your car insurance premium. So, if you have moved to a location with a higher premium and failed to inform the insurance company, any future claim might get rejected.
