Buying Car Insurance For CNG Vehicles

If you believe your standard car insurance will suffice to cover your CNG vehicle, whether you own one or plan to convert from petrol to CNG, continue reading. Since, regrettably, that isn’t true!

When you upgrade your comprehensive car insurance, you must adhere to several specific regulations if your vehicle runs on compressed natural gas (CNG). This is because a CNG kit can significantly impact your vehicle’s performance, insurance premium, and environmental impact, among other things.

What Benefits Do CNG Vehicles Offer?

Recently, there has been a lot of talk about CNG vehicles because they are a fantastic choice for those seeking an affordable and environmentally friendly car.

Compressed natural gas, or CNG, is less expensive than regular petrol or diesel because it gives you the same mileage for a third of the cost.

Its deficient carbon emission levels further make it one of the greenest fuels on the market.

How Does One Install A CNG Kit In A Car?

There are two main ways to obtain a vehicle with a CNG kit, although this may seem like a simple question.

For External CNG Kits

You can convert your gasoline-powered vehicle to a CNG vehicle. This entails giving your old car a new CNG kit installation. A high-quality CNG kit, typically installed in a car’s trunk, can cost approximately Rs 50,000.

It can, however, also be easily damaged, so you would need to get separate insurance for the kit from your insurer.

Internally Installed CNG System

In this instance, the manufacturer has pre-installed the CNG kit, which is included with your vehicle. This implies that any insurance you purchase already has a CNG option.

What Impact Will A CNG Kit Have On Your Car Insurance Rate?

Numerous factors influence a car insurance premium, such as the fuel type and the insured declared value (IDV). Your car’s CNG kit installation will impact both of these.

Whether your CNG kit was installed later or was included with the car will determine whether you qualify for a comprehensive policy. You can use an IDV calculator to calculate the relevant costs.

For External CNG Kits

Ensure your insurance company is informed when you install a new CNG kit in your vehicle so they can update your coverage.

CNG cars are generally expensive to install and require much maintenance (a good quality CNG kit can cost around Rs 50,000). This implies your premium will increase by 4-5% of the kit value.

For Cars That Have CNG Kits Installed

The same rules that apply to other types of vehicle insurance also apply to pre-fitted CNG vehicles. When purchasing or during the process of car insurance renewal online, you can update your RC book with a CNG seal and specify the fuel type. You can use car insurance add-ons for added coverage. *

Your premium will probably be higher than the insurance premium for an identical car that runs on petrol or diesel.

* Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.