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How does moving to a new state affect your car insurance?

New Delhi, October 11, 2024: New beginnings always bring joy, and moving to a new state is one of those exciting adventures. It comes with a lot of fresh opportunities and experiences.

However, amidst all the packing and excitement, many people tend to forget or overlook certain essential factors, one of which is - updating your car insurance.

Yes, you read it right! It is extremely important to be aware of updating your car insurance when you move to a new state as moving to a new state significantly affects your insurance coverage, premiums, and even legal obligations to an extent.

In this blog, let us explore how moving to a new state can impact your car insurance and what steps you should take to ensure that your car insurance remains unaffected.

Impact on Car Insurance Premiums:

In India, car insurance premiums can vary based on where you live. Insurance companies, when determining premium rates consider various factors like traffic density, crime rates, road conditions, accident rates, etc.

For example, moving from a metro city like Mumbai to a smaller town in Gujarat could result in a lower premium. On the other hand, moving to a city like Delhi or Bengaluru, which has heavy traffic, and a higher accident rate could increase your car insurance premium.

This is because a part of the premium paid covers risk associated with the location -because of the change in location table for your policy which changes the associated risk factors covered by the insurance plan, there could a relative impact on the premium amount.

Also learn: How to calculate car insurance premium online

Updating your insurance after moving ensures you are charged the correct premium for your new location.

NECESSARY STEPS TO TAKE TO MAKE SURE YOUR CAR INSURANCE IS UNAFFECTED

1. Notify Your Insurance Provider:

The first and foremost thing to do when moving to a new state is to let your car insurance provider know about the move and the place you are moving to.

We often think that insurance providers are the last people we need to inform about our moving, but it is extremely crucial to let them know as this will not just help ensure that your policy stays active but also gives you the opportunity to ask questions and clarify doubts.

They will definitely help you with any and all questions such as 'Can I use my car insurance in another state' or 'What all documents will I need to change my address', etc.

2. Update Your Contact Information:

Once you have informed your insurance provider, the next important thing you have to do is to update your contact information, such as the new address, phone number, email id, etc., accurately on your policy documents.

This ensures that your insurer can reach you easily and send any important documents to the correct location.

Keeping your details up to date not only helps avoid missed communications but also prevents any confusion and complication during claim processing. Without accurate information, you could face delays or even issues in receiving timely support from your insurer.

3. Re-registering Your Vehicle:

In India, moving to a new state requires more than just updating your car insurance policy. You are also legally required to re-register your vehicle at the new state's Regional Transport Office (RTO), usually within 12 months.

This re-registration process is extremely important because your vehicle's registration is linked to your car insurance. If you fail to re-register your vehicle, your insurance claim could be rejected due to non-compliance with legal requirements.

4. Steps to Re-Register Your Car:

Re-registering your car involves obtaining a No Objection Certificate (NOC) from the RTO in your previous state. Once you have the NOC, you will have to submit it along with your car's original registration certificate, insurance documents, pollution under control (PUC) certificate, and proof of your new address to the RTO in your new state.

The re-registration process can take some time, so it is advisable to start the procedure as soon as possible after your move.

5. State-Specific Insurance Laws and Requirements:

In India, each state has its own car insurance rules, so when you move to a new state, you might need to change your policy to fit local laws. Every state sets different minimum liability coverage levels for third-party insurance. When you move, your existing policy may not meet the new state's minimum requirements, forcing you to update, purchase additional coverage, or even buy car insurance online.

For example, some states may have stricter rules regarding coverage for theft, natural disasters, or accidents. Failing to meet the new state's requirements could lead to penalties.

In some cases, your insurance might also get invalidated, leaving you financially at risk.It is useful to check the Parivahan website of the Government and enquire at the RTO for further clarifications.

6. No-Claim Bonus (NCB) Transfer:

If you have been a safe driver with no claims, you probably have a No-Claim Bonus (NCB) on your car insurance. When you move to a new state, you can transfer this bonus to your new policy, as long as you either stay with the same insurance company or switch to one that accepts NCB transfers.

To keep your NCB, get a certificate from your current insurer before you cancel your policy. Give this certificate to your new insurer so you can carry over your bonus and benefit from lower premiums.

Companies like Chola MS offer options to use the online service on website or email in with service request to endorse the changes in your location to your policy so you can get updated policy certificate.

Conclusion

Moving to a new state can affect your car insurance in several ways, including changes in premiums and new state requirements. To keep your car insured and avoid any problems, make sure to follow the tips in this blog. Staying aware and taking timely action can help make the move easier.

(ADVERTORIAL DISCLAIMER: The above press release has been provided by VMPL. ANI will not be responsible in any way for the content of the same)