What happens to your auto insurance if you move to another city?


When you move to a new city, you may see changes in how state government systems are run, roads are governed, and how your auto insurance policy works.

It’s natural to wonder about what happens to your car insurance policy, its features and benefits such as in-network garages when you’re in another city. Today we’ll look at how car insurance is affected by policyholder relocation and things you need to keep in mind when taking your car to another city for use.

Should You Change Your Car Insurance Policy When You Move?

Your auto insurance policy should be updated when you move to a new city. If you are moving within your existing zip code, you should contact your auto insurance company and have your address changed. Updating your vehicle insurance is essential if you are moving to a new state.

It would be best if you follow the laws of the new state after crossing state lines. You may need a new policy even if your existing insurance is valid in the new city.

Suppose your current insurance provider is not authorized to provide policies in the new location. In this case, you will need to follow the procedure for switching insurers to a registered auto insurance provider to do business there. Additionally, the risk of insuring your car may change when you move, as auto insurers base their prices on risk.

How does a car insurance policy work when moving to another city?

Check the new state’s Department of Insurance of Motor Vehicles website for specific auto insurance regulations. You must update your insurance to comply with local law when establishing a new residence within three months of moving. Ask your insurer about their specific rules. Technology has made many aspects of life considerably easier, including car insurance management. So, before moving to a new city or state in India, consider the following regarding your car insurance policy:

1. Check if your insurance needs an upgrade

Although most insurance plans are valid across India, you can always choose to upgrade your policy when you renew it. For example, if you are moving from a small town to a large metropolis, your car may experience heavy traffic and a greater risk of accidents. You may need to purchase a comprehensive car insurance policy, which includes mandatory third-party coverage, to protect you from unforeseen financial losses.

2. Don’t forget to inform your insurer

The first thing to do when you decide to move with your car is to inform your insurer. Also, update your permanent residence and any other personal data such as your phone number on your necessary police documents. This will help your insurer contact you at your new location if needed.

3. If you buy a new car when moving house

To start, you need to decide whether you want to stay with your current insurance company or look for a new one that better suits your needs. Don’t forget to transfer the no-claims bonus from your old car to the new one. If you’re buying a new vehicle, consider zero depreciation in the auto insurance settlement if needed.

This is important because the value of a new car depreciates quite quickly. Your car’s components will lose 5% of their value just after six months of purchase and will continue to lose value each year. Car insurance with zero depreciation will provide full coverage in the event of damage, regardless of the value of your car’s depreciation over time.

4. See if you need new insurance

You can find new insurers if you move to another city, especially if your insurance policy is about to expire at the same time as your move.

Depending on the laws of the state or city you are moving to, the insurance company may offer additional benefits that could help you save money. Nowadays, buying or even renewing insurance is effortless and hassle-free due to the growing popularity of online platforms.

5. Transfer or keep your No Claim Bonus

It may be stated that your No Claim Bonus (NCB) from your car insurance cannot be transferred to a new location, a new insurance provider or even a new vehicle. Well, that’s not true. In fact, your PNE can be transferred into any of these scenarios and you can continue to enjoy its benefits. Your NCB is a benefit given by the insurer to you, the policyholder, as a reward for not filing a claim during the term of the car insurance policy.

6. Register with the new RTO

Registering your car with the RTO, the Regional Transportation Authority, in the state or city you are moving to is crucial. After registering, you will receive a new registration number which you must provide to your car insurance company.

However, before applying for re-registration, make sure you obtain a No Objection Certificate (NOC) from the RTO of your former city of residence. Be careful, just a NOC from the current RTO to the new will suffice if you are just moving for a few months and not permanently.

7. Think about extra blankets

Look for add-ons that might give you more coverage, whether you’re buying a new insurance policy or keeping your current one. The best method to improve insurance coverage is to purchase relevant add-ons such as zero amortization in auto insurance and roadside assistance coverage.

8. Check the list of network garages in the new city

One of the significant benefits of auto insurance is the ease of cashless claims. To benefit from this advantage, you must leave your car in a network garage. Therefore, when moving to a new city, check the list of garages in the network and preselect those that are close to your place of residence.

However, if the selection of garages in certain areas is restricted or if there are no garages in the network, you can still pay for the repairs out of pocket and then request reimbursement by submitting the original invoices.


An auto insurance policy taken out in one city may not be valid in another. Therefore, update your car insurance according to your new needs. Since the insurer determines the terms and conditions of the policy and its coverage, it is wise to inform them of your moving plans in advance to avoid any last-minute misunderstandings.

Disclaimer: The above information is provided for guidance only. For more details, please refer to the wording of the policy and the prospectus before closing the sales.

This article is generated and published by the FPJ think tank. You can contact them on fpjfocus@fpj.co.in

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