Here’s What You Should Know if You’re Purchasing Insurance for Your CNG Car
Since the industrial revolution began, humans have depended heavily on fossil fuels. Once the automobile industry began advancing, the dependency on fossil fuels increased. Fossil fuels have been one of the most important aspects of the automobile industry’s growth. However, we realised that fossil fuel usage had severely impacted the planet over the years. It has led to acid rains, air pollution, smog, global warming, etc.
Car owners are also confused between CNG or petrol/diesel cars. This is because fuel costs have risen quite a lot over the last few years. Many automobile companies and car owners are switching to CNG cars to deal with these drawbacks. CNG cars are optimal alternatives for driving the vehicle as it doesn’t produce a lot of pollution and can help you save. Therefore, opting for CNG cars can be quite beneficial for you.
How Do You Add CNG to Car Insurance?
Most car manufacturers are now producing CNG-powered cars in India to limit the dependency on petrol or diesel-powered vehicles and lower greenhouse gas emissions. Apart from this, you also have the choice to fit a CNG-kit in a petrol-powered car.
If you’ve opted to include a CNG kit in your vehicle, you must inform your insurer about the kit. In addition, CNG based vehicles have several specific regulations which you have to follow when you upgrade your car insurance. This is because CNG will impact your vehicle in several ways.
What is the Impact of the CNG Kit on Your Car Insurance Premium?
Here’s how including a CNG kit will impact your car insurance premium:
- Insufficient insurance: If you’re installing the kit in your car, the existing insurance policy may be a bit inadequate. This is because CNG kits need a decent amount of maintenance, and the cost of repairing the damages is also high.
If you’re looking to protect your CNG kit in the existing car insurance policy, you will have to inform your insurance company and improve the existing plan’s coverage. This way, you will be financially secure if your CNG kit needs repairs.
- Endorsement necessity: Including a CNG kit in your vehicle is considered an alteration to the vehicle. With the change in the fuel type and the addition to the vehicle, you will have to include it in the insurance for your four-wheeler.
To include it in your policy, you will have to request an endorsement of the CNG kit from your insurance company. If you fail to request an endorsement and face accidental damage, your insurer may consider rejecting your claim.
- Premium hike: According to the Insurance Regulatory and Development Authority of India (IRDAI), premiums are levied for the liability covers and own-damage covers in cars with CNG kits. They have fixed the liability premium at ₹60 (can change) for CNG cars (both factory-fitted or additionally installed).
The CNG kit is also covered under the own damage portion of the coverage. The inclusion of CNG kits results in higher premiums than diesel-powered and petrol vehicles. It would be better to opt for an online purchase when you buy car insurance. With insurers like Tata AIG offering car insurance online, you can use online car insurance calculators available on the website to estimate the premium amount.
You must also consider a few important aspects of the insurance before installing the CNG kit.
Benefits of CNG cars
- CNG cars in India are quite fuel-efficient compared to diesel or petrol cars.
- The amount of harmful carbon emissions is reduced.
- They are suitable for the car’s engine as CNG Is considered among the cleanest fuel types.
- The maintenance costs are low compared to regular diesel and petrol cars.
- CNG cars are sustainable and affordable options compared to petrol and diesel cars.
- As the CNG fuel tanks are well-built, the chances of an accidental leakage are low.
How to Get a CNG Kit Installed in Your Car?
If you’re looking to install a CNG kit in your car, you can do so in two ways:
- Internal Installation: With many customers opting for CNG as an alternative for diesel fuel or petrol, car manufacturers are pre-installing the kit in cars. As the kit comes with the car, its coverage will be included in the policy you buy for the car.
- External Installation: You can externally fit a CNG kit in your old car and drive the vehicle with both fuel options (petrol/diesel and CNG). Generally, the kit is installed in the car’s boot. As you include the kit additionally, you will have to get the proper insurance for the kit.
Things to Consider When Choosing CNG Kits
- Compatibility: You must check whether your vehicle is entirely compatible with a CNG kit or not. If your current car isn’t compatible, it would be better to buy a new CNG car.
- Aftermarket or factory: While an aftermarket deal may look affordable, opting for the factory-fitted choice will be the better option. This is because factory-fitted cars also get other benefits like warranty, services, etc.
- Fuel availability: Before you go ahead with the CNG option, you must check CNG availability in your area. This is because refuelling is a regular part of driving the car, and you must have accessible points near your home for smooth rides.
CNG cars are optimal choices for reducing the carbon footprints you leave and protecting yourself from the rising fuel costs. However, if you have externally added a CNG kit to your car, you will have to pay a higher premium than your current insurance premium. Along with this, you will also need to inform your insurer and get the endorsement for the kit to ensure you get proper coverage for your CNG kit. Before installing the kit in your car, you must also consider a few things, like the nearest CNG stations.