Does fitting a CNG kit make your car insurance premium pricier
Does fitting a CNG kit make your car insurance premium pricier 27th December 2022
Diesel and gasoline both cost a lot of money. Each has benefits and drawbacks, and you'll find it challenging to choose the best car variant. If you compared them to one another, you would see that their prices are still very different from those of CNG. The winner is unquestionably CNG (compressed natural gas) every time!
If you drive a lot, CNG is cheaper and better for the environment in the long run. However, it does have an impact on your car insurance premiums. What and why?
Here is what you should know if you ever want to buy a CNG kit for your car. Determine whether owning a CNG kit will affect your premiums directly or indirectly.
Before that, let's discuss its benefits.
1. More efficient mileage:
The mileage of your car will significantly increase after the CNG kit is installed. Less fuel is required for the same distance than petrol and diesel. Additionally, CNG is less expensive than petrol by roughly 50% or more, getting you more saving on fuel.
2. More protection:
Need protection and good value? A safer option than gasoline and diesel is compressed natural gas (CNG). It is a good eco-friendly fuel option due to its low carbon dioxide emissions.
3. Real cost savings:
Although CNG kit installation involves a considerably high initial cost, you can easily cover it in a few months
The drawbacks of CNG are as follows.
1. Increases boot space requirements
The size of a CNG kit may take up most of your car's boot. Avoid CNG kits if you like taking long trips with a lot of luggage.
2. It's not always easy to find:
CNG is still not available at all the fuel stations. It implies that you'll have to wait in a huge line of vehicles when you need to refuel. The refilling process could take up to 15 minutes or more.
3. Licensing and convertibility:
The CNG fuel system only works with some cars. Before the equipment is installed, you must receive government approval. The Registration Certificate (RC) must be branded with a "fuel change" seal as part of a series of requirements.
How does your car insurance policy be affected?
1. Current insurance won't be enough:
There is still work to be done if you want to install a CNG system in your car. You might assume the current insurance coverage would be sufficient. However, it won't be enough. With CNG kits come higher maintenance and repair costs, the car insurance premiums also increase. The CNG kit must be listed on the vehicle's registration certificate to satisfy some insurance.
2. Invest more in premiums:
Insurance companies view CNG vehicles as of a higher risk. Liability insurance for your CNG vehicle would cost you an additional sum. Typically, the increase is between 4% and 5% of the cost of the CNG kit. The age and brand of your car affect the premium as well.
To insure the kit, you must have your car insurance policy's endorsement approved by your insurance provider. Your entire policy will be considered invalid if you don't complete it. Be prepared to give up your car insurance benefits if you choose not to insure the CNG kit! Always verify with your insurer before putting the kit in your vehicle. After receiving their confirmation, only then should you decide.
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Disclaimer: The information provided above is for illustrative purposes only. To get more details, please refer to policy wordings and prospectus before purchasing a policy.