All You Need to Know About CNG Car Insurance
All You Need to Know About CNG Car Insurance
CNG-fueled vehicles are gaining popularity with the rise of sustainable and economical ways of travelling. If you are also thinking about installing a CNG kit in your vehicle or getting a new CNG car altogether, then it is a wise decision. But as you make this decision, you must also be aware of its effect on your car insurance policy.
You need to get CNG car insurance, too, for a CNG car. CNG car insurance, meaning a policy that is tailor-made for only CNG-fueled vehicles. Now, you must be wondering how it is different from normal insurance or how it affects your existing car insurance policy.
Read along to know!
Reasons To Have CNG For Your Vehicle
Environment Friendly Fuel
CNG is an environment-friendly fuel compared to diesel and petrol. Both diesel and petrol are natural resources, which are not only limited in nature
but also emit more carbon than CNG. Thus, by opting for CNG fuel for cars, you can conserve natural resources and make positive environmental
changes.
Cost Efficient
Petrol and diesel prices are highly volatile and are increasing with the passing years. Using a petrol-diesel-fueled vehicle can hit your pockets
significantly. But by choosing a CNG vehicle, you can save a lot of your money.
Better Fuel Efficiency
CNG has better fuel efficiency than its competitors, such as petrol and diesel. It means you get more mileage without spending more. Thus, you can
enjoy longer journeys without constant refuelling.
Also Read: CNG vs Petrol vs Diesel: Which Car to Buy?
How to Install CNG Kit In Vehicle?
There are two ways to get CNG in your vehicle: the first way is to install a CNG kit in your existing petrol or diesel vehicle and the second is to buy a brand-new CNG vehicle. In both cases, your car insurance policy will be affected; thus, you need to inform your insurance provider as soon as you make any decision.
Process to Follow When Installing CNG Kit in Existing Car
First, you need to inform the Regional Transport Office (RTO) about installing the CNG kit in your car. You also need to update your vehicle registration document.
Next, inform your insurance company about this change so that they can increase your vehicle insurance coverage. This might lead to a slight raise in your policy premium.
Process to Follow for New CNG Car
Buying a new CNG car simplifies the process a lot. As it is a brand-new car, the RTO will automatically take care of its vehicle registration. Moreover, you can buy new CNG car insurance for your car with new documents.
Also Read: What is a CNG Kit?
Impact of CNG Kit Installation on Your Car Insurance Policy
If you are installing a CNG kit in your vehicle, then you must be aware that it can change your car insurance policy terms and coverage. Here are some ways your insurance can be affected.
-Change in Coverage
Installing the CNG kit in your old or existing car can change your car insurance coverage. Your current policy covers the existing fuel type, diesel or petrol; it will not cover CNG fuel.
The maintenance and coverage requirement for CNG kit cars is higher than that of diesel or petrol cars. Thus, before or after the installation of the CNG kit, make sure to inform your insurance company to increase the policy coverage.
-Increased Insurance Premium Price
As mentioned earlier, CNG cars are more expensive than petrol or diesel-fueled cars, so their insurance premiums are also higher. Higher premiums are for the additional protection and maintenance of the car in the longer term, so your vehicle stays protected.
-Endorsement Requirements
Another important step to complete while installing a CNG kit in your car is getting an endorsement from your insurance company for your four-wheeler insurance policy. This endorsement is crucial when making major alterations, such as installing a CNG kit in your car.
If you fail to get an endorsement from the insurance company, then they can reject your claims in case of any accidental damage.
Also Read: 14 Precautions That Every CNG Car Driver Must Take
Importance of Having CNG Car Insurance for Your Vehicle
-Compliance With Rules
Getting CNG car insurance is mandatory to comply with legal rules and regulations. The Motor Vehicles Act requires all vehicle owners to have at least third-party liability insurance, and buying CNG car insurance ensures this rule is followed.
-Financial Protection
Buying a car insurance policy provides financial protection against losses associated with owning a car. It includes protection against accidental damage, theft, collision, third-party liabilities and more. If you do not want to incur hefty financial losses, then buying a CNG car insurance policy would be wise.
-Protection Against Third-Party Claims
Often, car incidents like road accidents and collisions involve third parties and persons. It leads to third-party liabilities against you. If you have CNG car insurance, it can help in covering any third-party liabilities incurred due to your insured vehicle.
-Get Peace of Mind
When you have CNG car insurance for your vehicle, you can be peaceful. With this insurance plan, you are complying with the law, keeping your vehicle protected and driving safely on the road. Even if any unforeseen event happens, the car insurance policy is there for your rescue.
Types of CNG Car Insurance
Third-Party Liability Car Insurance
Third-party liability car insurance is mandatory in India. This policy provides coverage against third-party liabilities, such as injuries, accidents, and property damage caused by the insured vehicle. However, it should be noted that it does not cover damage or loss for the insured vehicle and vehicle owner.
Own Damage Car Insurance
Another type of CNG car insurance is own-damage car insurance. It provides coverage only against the damages incurred to the insured car. It does not include third-party liability coverage.
Comprehensive Car Insurance
A comprehensive car insurance policy is the most extensive protection for your car. It provides coverage against damage and loss, such as accidents, theft, fire and third-party liabilities. It is the most exhaustive insurance policy for CNG vehicles.
Factors Affecting CNG Kit Insurance Premium
Several factors can affect your CNG car insurance premium price; here are those:**
Car Make and Model: The make and model of the car greatly affect the premium price of car insurance. Higher-end cars and the latest models have higher insurance premium prices than mid-range and older models.
Insurance Coverage Type: The type of insurance coverage chosen also affects the premium price. There are third-party, comprehensive and other types of insurance. Comprehensive insurance usually has a higher premium than others because it offers complete protection.
No-Claim Bonus: If you have accumulated a no-claim bonus from your previous car insurance policies, then you can get a discount on new or renewed policy premiums.
CNG Kit Value: The type and value of the CNG kit installed in your car can also affect the CNG car insurance price. The more expensive the kit, the higher the insurance premium will be.
Also Read: 6 Things to Know Before Opting For a CNG Kit for Your Car
Use CNG Car Insurance Premium Calculator
Before you buy car insurance for your CNG car, use a car insurance premium calculator. A car insurance premium calculator is an online tool that helps you get CNG car insurance prices accurately. You can compare the policy premiums of various policy types using this calculator. This way, you can buy the best insurance policy for your car.
To use the car insurance premium calculator, you need to enter the requested details of your car, such as the registration number.
Summing Up
Petrol and diesel prices are rising with every passing year, which significantly affects car owners' pockets. Moreover, the carbon emissions from these cars also affect the environment. That is why, to counter these issues, people are now switching to alternative fuels, such as CNG.
If you choose to install a CNG kit or buy a CNG vehicle, then you need to get a CNG car insurance policy. It is known that insurance for four-wheelers is mandatory, and it includes CNG vehicles, too.
With TATA AIG, you can compare car insurance online to know the CNG car insurance premiums for various plans. This way, you will be informed and can buy the best policy for yourself.
With the TATA AIG car insurance online buying and renewal option, you can buy new insurance for your CNG car or renew it with changes if you have installed a CNG kit. Our car insurance policy provides third-party liability cover, theft cover, own damage cover, personal accident cover and cashless garage repair services.
Also Read: Best Mileage CNG Cars In India 2024
Disclaimer / TnC
Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.
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