Relocating to your dream home or for a job in a new state can be an exciting affair. Everything is new and invigorating – there is so much to explore and absorb – the culture, cuisine, local attractions. However, there is one important activity that must not be forgotten in all this hullabaloo i.e. checking upon your car insurance.
Relocating to a new place?
Here’s a Checklist about Car Policy While Relocating:
The following aspects of your car insurance policy must be looked into when you decide to relocate -
Check whether the relocation will affect your coverage or premium. The earlier insurance cover was purchased after considerable deliberation regarding whether it was suitable for that area and circumstances. One’s insurance needs might alter with the change in location. It may also differ by virtue of different regulations of that place. Therefore, it is essential to revisit the policy and assess if the coverage is adequate or not.
For instance, let’s say the relocation is from a disaster-prone area to a safe, hazard-free city. One may choose to downgrade to a comprehensive policy with no add-ons. And may reconsider add-ons, which are no more essential in the new location. This change might also affect the premium that is to be paid if there is an additional risk that is to be covered.
Not only this, if you are relocating from Zone A city to Zone B, you might have to pay less premium. Whereas, if you are relocating from Zone B city to Zone A city, the cost of your premium would be higher. The table given below outlines the car insurance rates for the aforementioned zones based on the vehicle’s age and engine capacity:
Premium Rates for Zone A: Includes 8 cities namely New Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, and Ahmedabad.
| Age of the vehicle | Less than 1000 CC | Between 1000 - 1500 CC | Above 1500 CC |
|---|---|---|---|
| Less than 5 years | 3.127% of the IDV | 3.283% of the IDV | 3.440% of the IDV |
| 5 to 10 years old | 3.283% of the IDV | 3.447% of the IDV | 3.612% of the IDV |
| Above 10 years | 3.362% of the IDV | 3.529% of the IDV | 3.698% of the IDV |
Premium Rates for Zone B: The rest of the Indian cities are a part of Zone B.
| Age of the vehicle | Less than 1000 CC | Between 1000 - 1500 CC | Above 1500 CC |
|---|---|---|---|
| Less than 5 years | 3.039% of the IDV | 3.191% of the IDV | 3.343% of the IDV |
| 5 to 10 years old | 3.191% of the IDV | 3.351% of the IDV | 3.510% of the IDV |
| Above 10 years | 3.267% of the IDV | 3.430% of the IDV | 3.596% of the IDV |
Upgrade the policy and get appropriate add-ons to fortify your policy further. This customisation should enhance the value of the policy and must be geography-specific. If you are relocating to places like Mumbai, Pune or Kerala that witness high rainfalls, some of the add-ons worth considering are Engine Protection add-on, Zero depreciation cover and Road Assistance add-on. This upgrade can be done online.
Get your NOC from the RTO (and the police, if required) if you are switching states. The NOC must be obtained from the state RTO it was previously registered in and a new registration must be made in the RTO of the state that you have relocated to.
Inform your insurer about the relocation and update your contact details in the policy. Since all communications are made to the new address, or phone number, it is indispensable that this step be undertaken.
Avoid any gaps in coverage in case one decides to switch insurance companies or policies. The logical progression is – confirm with the current car insurer about the cancellation of the policy and the date that the policy will lapse. Once that is done, confirm the effective start date of the new policy and peruse the terms and conditions carefully. Copies of the new insurance policy and associated documents must be safely kept. Another very important aspect, which most overlook, is to ensure that the car is insured while you are moving.
Renew your plan online to save time and effort, which are precious commodities in times you are preoccupied with the stress of relocating!
Transfer your No Claim Bonus (NCB,) which is an excellent benefit that a comprehensive insurance policy offers. This is applicable even if a new insurance policy is purchased from a different insurer when you relocate.
Make note of network garages in your new cities so that its services can be used in case repair works arise. It will facilitate cashless settlement of claims in case of accidents.
Finish the mandatory re-registration in the local RTO and inform the insurer about the same. This is important as records will be apprised accordingly.
Summary
The most important takeaway is that one must keep the car insurance company informed about the relocation to prevent any confusions in the last minute. One can never be too cautious by rechecking terms and conditions of the car insurance policy repeatedly before taking recourse to any further action!
