Are you planning to relocate to another city? If yes then here is what you should be doing with your car insurance policy.
Relocation to another city can be stressful. Amidst the challenges and chaos, you may forget about your car insurance cover. Suresh was in a similar situation when he was relocating from Bombay to Hyderabad. From the cost of transporting his car and bike to the cost of living, he had figured out everything. But he did not know what to do with his car insurance policies.
Here is what you need to consider about your car insurance when relocating.
Updating your address with your car insurance provider has a great benefit. Apart from your phone number and email address, your permanent address serves as a channel for communication. The insurer directs important information related to your car or two-wheeler insurance to your home address. This could include communication on coverage, renewal, increase in premiums, accumulation of no-claims bonus (NCB), and so on.
When you move to another city permanently or for more than 12 months, re-register your car to get a local registration number. Make sure you let your car insurance provider know about this so that it reflects in your records. Then, no issues will arise if you make a claim. Updating insurance records is simple. However, the re-registration process will need a No Objection Certificate from the previous Road Transport Authority. Hence, work it out in advance.
Network of Cashless Garages
Your car insurance policy will provide cover throughout India. However, a cashless claim will only be possible at the garages/service centres that are within the network of the insurance company. For example, if you have been getting your repairs done through a particular service centre within the network, a similar workshop may not be available at your current location. Hence, you may have to pay the expenses and then claim a reimbursement. The choice of garages or workshops in a particular city or town could also be limited.
Premiums and Cover
There may not be a change in your premium. However, the premium can vary because of different factors, including the risks covered. The terms of car insurance also vary according to the legal regulations in each region. For example, you may have to pay a slightly higher premium when you move to a high-risk natural calamity zone, like a landslide-prone area. In certain areas, your insurance provider may not bear the cost of towing your vehicle to a roadside shop or provide roadside help. Premiums for two-wheeler insurance generally remain unaffected.
Something that works for one area may not work for another. Hence, when moving from one city to another, it is important to pay attention to your current car insurance needs and fix the gap. For example, you may consider extending a third-party insurance cover to a comprehensive plan in an area where your vehicle stands the risk of possible damage. This would be to protect it from recurring acts of vandalism, terrorism or natural disasters like landslides and quakes.
No Claims Bonus transfer
You may want to know what happens to your no claims bonus (NCB) if you buy a new car or two-wheeler. If the thought of losing your NCB is keeping you from taking the decision, know this: A no-claims bonus is a reward for a clear claim history and it stays with you. Let us say you move to a new city and buy a new car. Your NCB is transferred to your new car. Similarly, if you are unhappy with your car insurance provider or would like to choose a new one, your NCB is transferred to the new policy.
These general guidelines could help you in handling your car insurance when you move. However, as coverage and terms of policy may differ from one insurer to another, it is advisable that you inform your insurance provider in advance.