Here’s Everything You Should Know About CNG Car Insurance

As fuel prices rise, more people are opting for CNG vehicles. It is also less polluting and can help you save money. If you’re looking for a sustainable and cost-effective mode of transportation, consider a CNG vehicle. It is well known that natural gas can provide the same mileage as regular fuel for one-third the price. As a result, CNG is a less expensive alternative. Whether you own a CNG vehicle or plan to install one, you should be aware of the benefits and how they will affect your car insurance policy.

The Benefits of Owning a CNG Vehicle

  • It is more fuel-efficient than gasoline or diesel vehicles.
  • environmentally friendly due to its extremely low carbon footprint.
  • Because CNG is one of the cleanest types of fuel, it will be compatible with the car’s engine.
  • Keep in mind that this is a lot less expensive to maintain than a regular car that runs on gasoline or diesel.
  • More robust CNG fuel tanks reduce the possibility of unintentional leakage.
  • It is greener and less expensive than fuel or diesel.

Why Should You Consider a CNG Vehicle?

Continuous use of CNG extends the life of your car’s engine due to lower carbon emissions, making it the most environmentally friendly fuel available. Because compressed natural gas is better for the environment and your wallet, you should install a CNG kit in your car as soon as possible. If you do, you should be aware of the procedures that must be followed to upgrade your insurance.

Let us look at two different scenarios in which you could choose CNG coverage.

1. In older vehicles, a new CNG fitting has been installed.

In this case, your vehicle would already be covered by an appropriate insurance policy. As a result, installing a new CNG fitting would necessitate purchasing a separate insurance policy for the kit. If you do not upgrade your insurance, you will undoubtedly encounter problems when filing claims in the future.

CNG kits are typically installed in the trunk of a vehicle, increasing the likelihood of damage in the event of a collision with another vehicle. This is yet another reason to have your CNG installation properly insured.

2. Pre-installed CNG kit in a new car

When you buy a new car with a CNG kit, the situation is completely different from the one described above. Because the kit is installed by the manufacturer, you can easily update your RC book with the CNG seal. The CNG option will be included in your new auto insurance policy. You simply need to ensure that the CNG declaration is present in the car insurance policy and the RC book as expected.

The Impact of a CNG Kit on Your Car Insurance Policy

Now that you’re aware of the two methods for obtaining a CNG vehicle, you should be aware of how installing a CNG kit in your vehicle affects your auto insurance policy. Here’s how CNG affects your four-wheeler insurance rates.

1. Insufficient Coverage

The work doesn’t stop there if you want to install a CNG system in your car. You may believe that your current insurance coverage is adequate. But the truth is that it will not suffice. The costs of maintenance and damage are higher with CNG kits. With the installation of the kit, the coverage, and premiums both increase.

2. Increased Premium

As a result, CNG kits have higher maintenance costs, which raises the premium coverage. As a result, you must pay a higher premium. When it comes to charging a premium, the IRDAI has set the liability premium for CNG cars at Rs 60, regardless of whether they are installed externally or internally.

Because it falls under its own damage component, insurers charge a premium for the coverage. However, it results in higher premiums when compared to gasoline and diesel vehicles.

3. The Requirement of an Endorsement

CNG conversion is usually covered by your insurance policy. Installing a CNG kit is a significant modification to the vehicle. It must be included in your insurance policy. Its malfunction affects the entire vehicle and is thus classified as consequential damage. Furthermore, consequential damages are generally excluded from insurers’ lists of exclusions.

As a result, you’ll need an endorsement from your insurance company on your car’s policy to ensure the kit. If you do not complete it, your entire policy will be rendered null and void.

4. Using the CNG Car Insurance Premium Calculator

If you plan to buy car insurance online for your CNG vehicle, you should first calculate the motor insurance premium that you will have to pay. You can do so by using a CNG car insurance premium calculator.

You can use this calculator to compare the car insurance premiums of various insurers and find the best plan for your vehicle. To use this calculator to calculate CNG car insurance prices, enter information such as car make, manufacture, variant, location, and so on, and the online tool will calculate the motor insurance premium for your CNG car.

It is always important to protect the environment by using alternative fuels. You should also consider purchasing an appropriate insurance policy to cover your CNG vehicle.

Author Bio: Smriti Gala works as a Digital Marketing Manager with Coverfox. As her life turned upside down when COVID severely afflicted her family members, Smriti decided to dedicate her expertise to informing and educating the masses about the importance of health insurance. When she is not actively writing enlightening content, our ‘monk marketer’ likes to meditate, meet new people and explore less traveled territories.

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