How to Manage Car Insurance when Relocating within India?

1. Remember to notify your insurer

The very first thing you should do about your car insurance when you must relocate is to notify your insurance provider of the change. They can then answer any questions you may have, like ‘can I use my car insurance in another state’ or ‘what documents will I need’.

You will also need to update your permanent address and any other personal information (like contact numbers) that will need to be updated on your policy documents. All of this will ensure that your insurer will be able to communicate with you at your new address or send across any official documents by post. 

2. See if you need to upgrade your policy

Most insurance policies are valid all across India, but you may still need to upgrade your policy when you renew it for a more hassle-free experience. For example, if you’re moving from a smaller city to a big metro, your car might face a huge amount of traffic rush and a greater risk of road accidents.

So, to protect both you and your car against uncertain financial losses, you might need to get a comprehensive motor insurance policy instead of just the required third-party policy. It will not only cover you against incidents like own damages or injury but also provides financial backups in situations like natural calamities or theft. You can read more about the difference between a comprehensive and third-party only policy here.

3. Check if you need a new insurer

Whenever you relocate to a new city, you could try to do a bit of research on the insurance companies in that location. Especially if your insurance is set to expire around the same time when you move. An insurer in the city you’re moving to might offer some additional benefits based on the regulations in that city or state which could help save money.

With so many digital-first insurers now it's very easy to buy or even renew insurance with zero paperwork and completely hassle-free. Read all about Digit’s process here. 

4. Pay attention to your premium

Depending on what risks and terms your car insurance policy covers, your premium may change when you relocate. We can’t guarantee there will be a change or not, as it will depend on your insurance company. For example, if you move to an area known for natural catastrophes like floods or earthquakes, you might need to pay a higher premium. 

5. Look for any add-ons you may need

Whether you are getting a new insurance policy or sticking with your old one, you should look for any add-ons that can provide you with extra coverage that would actually be beneficial to you (along with your existing or upgraded comprehensive policy). Add-ons are extra coverages that you can choose along with a comprehensive policy and they are the perfect way of personalizing your policy.

For example, if you’re moving to a place like Mumbai you might want to opt for an Engine Protection cover would safeguard your engine against floods. Or perhaps, you might want a Passenger cover if you plan to travel around with your friends or family.

6. Transfer or retain your No Claim Bonus

It might be a common misconception that the no claim bonus in car insurance won’t get transferred to a new city or a new insurance company, or even a new car. But that not true! In any of these situations, the NCB from your car’s insurance will be transferred, so, you will not have to lose your no-claim-bonus.

Your NCB is related to the policyholder (i.e you) and is basically a discount or reward provided from the insurer's end for not making a claim during the policy period. 

7. Look at the availability of network garages

One of the services that you’ll get with your car insurance provider is the option to avail of a list of network garages that offer cashless services in case your car needs any repairs due to an accident.

When you’re relocating, you should check if your insurer lists any of these cashless garages in the city you are moving to. This way, you will be able to get your repair work done easily in the new locality. However, if the option of garages in some cities is limited, or there are no network garages, then you may end up paying from your pocket and then have it compensated through a reimbursement.

8. Re-register with the local RTO

It is very important to get your car registered with the Regional Transport Office (RTO) of the state or city you are relocating to (whether permanently or long-term). This re-registration of your vehicle is mandatory and once you complete it; you will get a new car registration number that you must be immediately updated with your car insurance provider.

But, before you go in for re-registration, make sure you’ve obtained a No Objection Certificate (NOC) from the RTO of the city where your car was previously registered in. However, in case you are only temporary relocating for a few months, just a simple NOC from the current RTO to the new one will suffice.

9. Make sure that there is no gap in your insurance cover

While you are busy in relocating, you might forget that you need to renew your insurance policy. And since driving around with a lapsed insurance policy might get you into trouble. It is illegal (as having at least a third-party insurance is mandatory in India as per The Motor Vehicles Act of 1988) and on top of that, you won’t be covered for any claims in case you suffer from a loss.

10. What to do if you’re buying a new car?

If you’re planning to purchase a new car when you move to your new location, there are some things you must still remember to do about your car insurance. First of all, you need to decide if you’re going to stay with your old insurance provider or if you want to get a new one that will benefit your new car better. Then make sure to transfer the No Claim Bonus of your old car to the new one.

Learn more about: 

• Types of Car Insurance in India
• Car Insurance Calculator

So, by doing a little research, you can easily handle all the stress of relocation very easily. There are sure to be lots of other things to worry about, like moving all your furniture, but don’t forget that your car insurance which will be your savior, in case any you run into any unforeseen accidents.

Keeping these points in mind will help you to ensure that you’re still protected by your car insurance while you build up your new life at a new location. However, the most important thing is that you keep yourself excited about your relocation and enjoy your new city with as little stress as possible!