How To Manage Your Car Insurance While Relocating?
Moving to a new city is both stressful and exciting. You have to do a lot of things while relocating. Besides, packing, moving, and then unpacking all of your personal belongings, you are required to update your address and phone numbers with banks, utility providers, credit card companies and the like.
Well, your responsibilities do not end here. Aside from all day-to-day tasks, you are also required to comply with legal requirements, such as managing your car insurance policy. This is one of the important things that you certainly can’t avoid.
In this article, we’ve highlighted some essential tips on how to manage your car insurance policy while relocating to another city.
Update the Address
Updating your new address with your car insurance provider should be the first thing that you need to do from your side. Aside from your phone number and email address, your address works as a channel for communication. This helps the insurance provider to communicate you regarding your car insurance policy. Your insurer can contact you for many reasons such as an increase in premiums, claim settlement, insurance policy renewal, NCB, and so on.
When you relocate to another city permanently or for more than one year, it is very important to re-register your vehicle in order to get a local registration number. Make sure you inform your car insurance provider about this so that your agent can update your policy records. Also, it helps to avoid any issue when you make a car insurance claim after relocating.
However, this re-registration process will require a no objection certificate from the “Road Transport Authority” before you used to live before relocating.
Premiums & Insurance Coverage
There may or may not be a change in your car insurance premium. Hence, it will completely depend on your car insurance company. The premium can vary due to different factors, including the risk covered. In addition to this, the premium also varies according to the legal rules & regulations in each region. For instance, you may require to higher premium when you move to a high-risk natural calamity zone such as flood-prone or earthquake area. Also, keep in mind that your car insurer may not bear the cost of towing your vehicle to provide roadside assistance. You may have to pay extra for availing such benefits.
Modifying Your Insurance Coverage
Requirements keep changing according to the place. Something that works well for one area may not work out well for another area. Henceforth, when relocating from one city to another, it is very essential to consider your present car insurance requirements and fix the gap. If you currently have third party car insurance policy then we would strongly recommend you to extend it to a comprehensive insurance policy. This will help you to protect your own vehicle in the event of an accident. In addition to this, some of the car insurers offer add-ons along with the comprehensive policy that you can get it to protect your car from vandalism, theft, natural disasters, riot, strike, or other damages.
Transfer Your No Claim Bonus
No claim bonus (NCB) is one of the important aspects of your car insurance policy. When you move to another city, you may be curious to know what happens to the NCB that you have earned. If you are thinking that you are going to lose your NCB then you’re wrong here. NCB is a discount given by the car insurance provider to a policyholder for not making any claim during the policy term. This reward stays with you. Let’s just say you move to a new city or buy a new car. Your “No Claim Bonus” is transferred to your new car.
In addition to this, if you’re unhappy with your current car insurance provider and you would like to replace it with a new one then you NCB will be transferred to the new insurance policy. So, forget the thought of losing your no claim bonus as it follows you wherever you go.
Avoid a Coverage Gap
As per the law in the UAE, driving a vehicle with invalid auto insurance is illegal. The consequences could end up being very serious. You may be caught by the traffic police and you will have to pay a huge penalty for that. Also, you may be imprisonment for up to three months. In the worst case scenario, you could possibly be deported as well. So, if you don’t want to face these worst scenarios then avoid the gap in your car insurance policy and never cancel your existing policy without buying a new one. And make sure you:
- Confirm the effective start date of your new car insurance policy as well as the end date of the policy
- Confirm with your car insurance provider that your policy has been cancelled officially
- Print your insurance policy documents and all other documents that are related to the car insurance policy
- Contact your existing car insurance company to find out whether your vehicle will be covered under the insurance policy while you are moving.
Note: And if you are looking for the best car insurance in Dubai then we advise you to go online and then compare different insurance policies in terms of their coverage, benefits, and features. This will certainly help you to opt for the insurance policy that will fulfill all of your insurance needs.
So, consider all these above-mentioned steps to manage your car insurance while relocating. They will definitely reduce your stress and burden of maintaining your car insurance policy. However, keep in mind that every car insurance company has its own insurance coverage and policy. Thus, they may vary from one car insurance provider to another. It is highly recommended that you inform your existing insurer in advance to keep yourself in a safety zone.