Car Insurance changes while Relocating

It is always exciting to go to a new place and start living but it is also very stressful as it is associated with relocation. There are many things that you should do while you are relocating. Packing and moving are some of the most important things and apart from that change in address, updating new communication addresses for all service providers, banks, credit card companies and others is an important task. 

Apart from all these, there are other legal requirements and responsibilities that you should comply with. Among all these is to manage your car insurance policy and it is one of the most mandatory tasks that you cannot and should not avoid or delay. Here in this article, we provide you with a few suggestions that you can take care of when you relocate to another city in the UAE. 

1. Address Change

It is important that you update the new address with the car insurance company. The change in your contact number, the email address is important and so equally important is to update the change in address for communication. This is important because the insurance company will send all the communication to the address that you provide to them. 

The insurance company will contact the insurer for sending information on changes in premium amounts, settlement claims, renewal information of insurance policy, no claim bonus settlements and others. 

2. Re-registration

If you are relocating to any other city and staying there permanently or for more than a year then you should re-register your car. This is important to get a local car registration number. Tell your car insurance company that you are relocating and after this, the insurance agent will update the records. Once you do this you can get assured that if there is any claim settlement it will go smoothly without any hassles. 

To do the re-registration process, you should get a no-objection certificate from authorities. The road transport authority will issue the certificate where you lived previously before relocating to a new city. 

3. Update Insurance policy

Change in the insurance premium may or may not happen and it will depend on the insurance company's internal policies. The change in insurance premium amounts will depend on various factors such as risk cover, legal requirements rules and regulations in the city to which you have relocated. There may be more premium amounts based on the location you relocate. Some areas may have more risk compared to other areas. 

If you are moving to risky areas which are highly prone to natural calamities then the premium amounts in that region will be higher compared to other areas. The risk can be associated with natural calamities like earthquakes, heavy rains, tornados, sand storms and others. The car insurance company will calculate all these expenses and you have to pay an additional amount of money for availing service. 

4. Modify Insurance cover

Insurance needs keep changing from place to place and time to time. If something is good in an area it is not mandatory that you will feel the same comfort in other areas. If you are relocating to another city then consider all the aspects according to that city and make necessary changes to your insurance cover so that the gap can be fixed. 

If you are having a third party car insurance policy then change it to a comprehensive insurance policy. That would be highly recommended to protect you in the event of unforeseen happening. Apart from these, the insurance companies provide add on services that will protect you from theft, vandalism, riots, strikes, thefts, man-made disasters and other damage.

5. NCB Transfer

No Claim Bonus (NCB) is a significant aspect of the insurance policy. If you are moving to another city you may be eager to know what will happen to the bonus that you earned in these many years. It is interesting to note that your No claim bonus is safe and can be transferred to a new city along with the policy. Many people think and worry about losing the NCB but in reality, it is not so. 

NCB is a discount that is offered by a car insurance company to the policyholder for not making any insurance claim in the policy term period. This is an appreciation which will stay with you and when you move to a new city or purchase a new car this unclaimed bonus amount gets transferred to the new car and your relocated city. 

Moreover, if you are not happy with the present insurance provider then you shift to another insurance provider. Your no claim bonus can get transferred to your new insurance provider’s policy account. Wherever you go your no claim bonus can be transferred along with you. 

6. Insurance Gap

It is illegal to drive your car with invalid insurance in the UAE. There are very serious consequences for doing such an act. You may have to pay a huge penalty for doing such an act and also pay a very high penalty for this. 

Imprisonment of 3 months and a penalty can be imposed if the worst situation happens. If you do not want to face any situations like these then it is better to avoid insurance gaps in your car insurance. It is important to note that do not cancel your insurance policy until you buy a new policy. 

Check the starting date of your insurance policy and keep in mind to renew before the due dates. Inform the service provider about the policy cancellation, renewal and provide all the documents related to car insurance during the relocation process. 

Conclusion

When you are relocating to a new city, look into the conditions of that city and go online to do some good research about the requirements of car insurance in that new location. Consider the above-mentioned tips and they will reduce your stress burden. Inform the existing car insurance provider and discuss with them this, the insurance agent will surely assist you. Insurance premiums may be different from insurance company to company because they have their own policy. Compare online and find the best car insurance policy in the UAE when you are relocating which includes benefits, coverage and features that will help you to get the complete insurance requirements.