How The Type Of Fuel Your Car Uses Affects Car Insurance Premiums
When you buy a car, you can choose a model based on the fuel type it uses. Usually, the decision involves determining which type of fuel would be best for long-term use and vehicular performance. However, the type of fuel your car uses also affects the premiums of your car insurance policy. This article will give you a better idea to ensure you make all the right decision when it comes to the type of car you buy and the insurance policy you choose.
Simply put, insurance plans will charge a lower premium for a petrol car than that for a diesel or CNG fitted car. The reason for this is that petrol cars are usually driven over short distances and have a lesser chance of wear and tear. Moreover, they demand lesser maintenance than that of CNG fitted cars.
Compared to petrol or CNG fitted cars, diesel cars are a little more expensive. Hence, the cost to insure them is also higher. Moreover, many insurance providers will charge you a little extra for parts, repairs, and coverage for car theft.
CNG is often considered to be the environment-friendly alternative to petrol and diesel. Moreover, using CNG as a fuel has also proven to be more economically sound. Hence, many car drivers today prefer to use CNG as fuel for their vehicles. However, the cost to insure a CNG vehicle can be on the higher side. In fact, you could end-up paying as much as 10% more than what you would for a diesel or petrol car. Moreover, the premium you pay will depend on you these two factors:
Installing CNG kit into an old car
If you want to make the switch from petrol or diesel to CNG, you need to get a CNG kit installed in your vehicle. However, this your car already has an insurance plan that does not cover the CNG kit.
Hence, if you install a CNG kit in your car, you have to purchase coverage for the kit separately. This could cause your car insurance premium to increase. Moreover, for compliance reasons, you have to make changes to your vehicle’s Registration Certificate (RC).
Before changing the coverage for your car insurance policy, your insurance provider may call for an inspection of the vehicle. Hence, you should make sure that the kit is installed through an authorised workshop.
Buying a new pre-fitted CNG vehicle
Buying insurance for a new pre-fitted CNG vehicle is the same as insuring a petrol or diesel car. Hence, there will be no extra cost for installation of a CNG kit. The premium for your insurance plans will then be determined by vehicle’s specifications.
To many of us, selecting a fuel type for your vehicle seems like a decision about mileage and money. However, as you can read above, it can have many more implications. Hence, the difference in premium based on fuel type can be used to make coverage of insurance plans more refined.
