Automatic Car Insurance vs Manual Car Insurance Policy: Which is More Expensive and Why?


5 min read

Updated on Feb 06, 2023

Automatic vs Manual Car Insurance Policy in India

There was a time when having a car was a symbol of luxury. Only the rich people used to have four-wheelers. These days, it has become more of a need. Whether it is a hatchback or an SUV, almost everybody who lives especially in urban areas has a car. When you have a car, you must buy a car insurance policy as well. A car insurance policy is very helpful, especially in case of damage to the car as well as third-party liabilities.

When buying a car, these days it is always confusion among the buyers about whether to buy a manual car or an automatic car. The debate on manual vs automatic cars seems to be unending. Many people prefer automatic cars since it is easier to drive one such car. However, while buying one, you must know that it may affect the premium that you have to pay for your car insurance. So, let us discuss automatic vs manual car insurance in India and it has its impact on premium cost.

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Manual vs Automatic insurance – How does car gearbox type affect car insurance premiums?

Manual gearbox cars

As the name explains it all, the driver in a manual car needs to manually shift gears to drive the vehicle either forward or reverse. While some say that it is easier to drive a car that has a manual gearbox, others say that the coordination can be a bit challenging.

Automatic gearbox cars

Unlike a manual gearbox, in a car with an automatic gearbox, the driver is guided by an onboard Electronic Control Unit (ECU) based on the operation of the accelerator pedal. Therefore, an automatic gearbox changes the gears on its own and the driver does not need to make any manual intervention. A car with an automatic gearbox may not give you a fun ride but it can certainly be hassle-free. And if you are in a crowded urban area, a manual car comes as a great help.

Also Read: Best Automatic Car in India Under 10 Lakh

Effect of the manual and automatic gearbox on car insurance price

The cost of motor insurance for cars is decided based on many significant factors. The factors include the model of the car, size of the engine, manufacturing year, location, and the approximate market value of the car.

The only difference between the two cars is their gearbox. This is why; an automatic car generally is much more expensive than a manual car, especially when it comes to buying car insurance. The reason is, that the repair or replacement of an automatic gearbox cost is more than a manual gearbox. So, we can say that the insurance premium for an automatic car will be higher than for a manual car. However, the difference in the insurance cost is marginal.

5 Factors that Affect the Car Insurance Policy in India

As we have already discussed, the premium of car insurance depends on various factors, and some of them are mentioned herein below:

  • Age: Over the period, the value of the car depreciates because of the common wear and tear. This is one of the main reasons why a car’s age is considered to calculate the cost of the insurance.
  • Make/model/variant: If it is a luxury car, the insurance cost will certainly be higher as compared to a regular car. The manufacturer of the vehicle, vehicle type, engine cubic capacity, and many more affect the cost of the premiums of car insurance.
  • Coverage: Apart from the mandatory third-party car insurance, you need to make sure of choosing the Own Damage cover as it will help you to get the wholesome insurance coverage for your car.
  • Deductible: Car insurance deductibles are of two types, such as compulsory and voluntary. In either of the cases, you would be required to pay a part of the claim amount.
  • Location: Location is very important as the cost of insurance is higher as compared to the 3-tier cities.

5 Tips on maintaining an automatic car

Since the insurance price for an automatic car is higher, you must put the effort into maintaining the condition of your car. Here are some tips on maintaining an automatic car.

  • Servicing the cooling system of the engine: The engine cooling system in a car helps the engine from getting overheated. Apart from this, it also ensures that the transmission fluid that flows through the gearbox is cooled down. Therefore, you need to ensure that the engine cooling system in your car is in the right condition.
  • Taking the car for routine maintenance: The car transmission fluid should be regularly checked in order to maintain an automatic car. Some of the common problems are grinding gears and overheating which mainly take place because of low fluid or contaminated transmission fluid. Therefore, checking the transmission fluid levels once in a while is a must. The transmission fluid should be changed if it is low, dark in color, or smells bad. The fluid should also be changed if the car has been driven 30,000 to 50,000 miles after the last time it was changed.
  • Not putting pressure on the brake: You must not put a lot of pressure on the brake pedal since it puts extra pressure on the engine and transmission. Therefore, in stop-and-go traffic, you need to be extra careful.
  • Car gears should not be changed while the vehicle is moving: Quick moving between forward and reverse gears should be avoided while you are driving. You should stop the car before you shift the gears. Not paying heed to this might lead to wear and tear.
  • Taking care of the engine of your car: You need to know that if the engine of your car is not working properly, the pressure will be more on the transmission. Therefore, taking care of the engine of your car is very important.

Now that you know the difference between automatic cars vs manual cars in India, you should get a car insurance policy at the earliest. Once you have a car insurance policy, you can rest assured of the expenses that will be borne by the insurance company in case of any kind of damage that happens to your car.

FAQs on Automatic Car Insurance vs Manual Car Insurance Policy

Is automatic car insurance more expensive?

As previously stated, a number of aspects of the vehicle determine the insurance or premium cost. Typically, the automatic version of a car costs more than the manual version. As a result, the automatic car insurance premium is higher than the manual car insurance.

Why is online car insurance cheaper in India?

Since there is no paperwork and physical documentation required, insurance companies benefit from this. Furthermore, no need to pay agents a commission for selling you a policy, which is why, it is cheaper to purchase car insurance online.

Read More: Checklist You Should Follow before Purchasing a Car Insurance Policy | How Much is Car Insurance Cost Per Month in India? | Does Car Insurance Price Vary in Different Regions in India

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Jun 07, 2022
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PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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