More people are switching to CNG vehicles as fuel prices are increasing. Also, it is less polluting and can save you money. Whether you own a CNG car or planning to install it, you must know how it will affect your car insurance policy.
Advantages of having a CNG vehicle
If you are looking for an eco-friendly and sustainable way to drive, CNG vehicles are a great option.
They are not only great alternative but are also less expensive and economical. It provides you the same mileage for one-third the price of regular price.
Additionally, it has very low carbon footprints which makes it one of the most eco-friendly fuels available.
How to get a CNG kit installed in a car?
Here are two ways you get your vehicle with a CNG kit.
External installation
You can install a CNG kit in your old car and run the vehicle in both petrol and CNG. It can cost you around Rs 50,000 and you also need to get it insured.
Internal installation
As many people are now opt for CNG fuel, car manufacturers are pre-installing the CNG kits in cars. This means, the equipment will be already included in the insurance plan.
How will CNG kit affect your insurance premium?
Here is how CNG or LPG kit can affect your car insurance policy.
Increased premium
CNG kit has higher maintenance costs which increase the premium coverage and ultimately you have to pay a higher premium.
When it comes to charging a premium, IRDAI has fixed the liability premium at Rs 60 for CNG cars, no matter if they are installed externally or internally.
It also comes under the Own Damage component, therefore insurers charge a premium for the coverage. However, it results in higher premiums compared to petrol and diesel-powered vehicles.
Insufficient coverage
When you install a CNG kit in your car, your existing insurance policy becomes insufficient. It requires higher maintenance and the cost of repairing the damage is also higher. Thus, if you want your insurance policy to cover the cost of CNG kit, you need to inform your insurer and ask to expand the plan's coverage.
Need of an endorsement
When you install a CNG kit in your car, you need to add it to your insurance policy. You need to request an endorsement of the fitted CNG kit. If you failed to do so, the insurer might consider rejecting your claim.
Conclusion
It is essential to take care of the environment by opting for alternative fuels. Additionally, you must also consider purchasing an appropriate insurance policy to cover your CNG car.
