CNG Car Insurance in India – Benefits and Impact on Premium – Know in Detail

So, are you planning to install CNG in your car? Or are you thinking about buying a CNG enabled car? If so, you must know how much the CNG car kit will affect your car insurance price. Let us talk about such details related to CNG car insurance in this blog.

Benefits of CNG in Car: First let’s start with the benefits of a CNG fitted car

CNG or Compressed Natural Gas is the best choice when it comes to using eco-friendly means of driving.

Below are some of its benefits:

• CNG is efficient in curbing the carbon emission, growing pollution and the effect of climate change.
• Along with being eco-friendly, they are also economical as compared to petrol, which is why they are in vogue these days.
• CNG allows almost the same mileage that a petrol driven car provides.
• The price you pay for CNG is one-third of what you pay for petrol.
• The carbon footprints released by CNG are very low, which is why it is environment-friendly.
• It helps in making the environment greener and better.

How to Install a CNG Kit in Your Car?

These days, many car manufacturers in the country have started producing CNG cars so that the dependency on the other resources can be lowered. But when it comes to installing CNG kit in your car or buying a CNG car, it causes changes in your car insurance premium.

You can have CNG in your vehicle in two ways, either by buying a CNG car or by replacing the fuel system of your old car with a CNG kit. Irrespective of the way you get CNG in your vehicle, it will have some impact on your insurance policy.

Here, we are giving details on both the ways that you can get CNG in your car and how it affects your car insurance:

• Get CNG in your car by installing an external CNG kit –  So, this is one of the options that you have for installing CNG in your car. You can just replace your existing petrol/diesel engine and fit a CNG kit in place of that.  However, in this case there will be changes in your car insurance as the earlier insurance that you had for your petrol/diesel car will not be sufficient for this CNG fitted car. Thus, you need to inform your insurer about it to get coverage accordingly.
• Along with informing your insurer, you must also inform your RTO about the new addition in your car and ensure it is updated in your RC book.
• Also, you must ask your insurer to change the car insurance cover for your four wheeler so that you can have appropriate cover for your car in case it gets damaged in future. Your policy coverage might be increased by your insurer, and you might be required to pay a hiked premium.
• Purchase a new CNG fitted car – If you plan to buy a CNG fitted new car, it might serve your purpose well. In this case, you just need to buy insurance for your CNG enabled car from your insurer. Here, you do not need to inform RTO as they get informed when you register the vehicle. So, the RTO will issue you a CNG sealed RC book. Similarly, since your insurer also knows about your CNG car, they will issue a policy considering the CNG aspect of your car.

What Impact does CNG Have on Your Car Insurance Policy in India?

Now, let us discuss how CNG impacts your car insurance policy premium and what all to expect.

Hiked Premium – As already discussed, CNG enabled cars require high maintenance. Thus, you will be levied with a high premium on your CNG fitted car by your insurer. Whether you opt for a third-party car insurance policy or buy a comprehensive insurance plan you will have to pay an enhanced car insurance premium.

Inadequate coverage – If you add a CNG kit to replace the petrol car, your existing premium will not be enough to cover your new car model. This is because the earlier policy was issued to cover your petrol or diesel car variant, while the CNG variant cannot be covered under such coverage amount. Since CNG enhances the liability of the insurer due to high maintenance cost, thus it requires the insured to pay enhanced premiums. So, it is advised to change the current policy at the time of car insurance renewal and pay premium accordingly so as to get proper CNG coverage.

Calculate CNG Car Insurance Premium Using Car Insurance Calculator

Whether you buy a new CNG car or upgrade your existing car with a CNG kit, you will still require CNG car insurance. However, if you are looking at the best premium rate for your CNG car insurance renewal online, you can use the motor insurance premium calculator for this purpose. This way, you will come to know how much premium will be levied on you for your CNG fitted car insurance.

The calculator also helps you to compare the premium of car insurance online of several insurers so that you can choose the most suitable insurance for your CNG fitted car.