All You Need to Know About CNG Car Insurance

If you are planning to get a CNG kit fitted in your car or purchase a new CNG car, you should know how it will affect your car insurance policy price. Here is all you need to know about CNG car insurance and how CNG will impact your motor policy premium.

Read more


Get Car Insurance starting at only ₹2094/year*
Renew in 2 minutes
Chose from 20+ insurers
51 lakh+ Cars insured
Processing
Other options

Advantages of Having a CNG Vehicle

If you are looking for a sustainable and eco-friendly way to drive, having a CNG (Compressed Natural Gas) car can be the best option for you. Due to increasing pollution, carbon emission, climate change, and whatnot, CNG vehicles are in vogue recently. Not only are they a great alternative to petrol but are also less expensive and economical.

Besides, you can get the same mileage with a CNG car that you get with a petrol one at one-third the price of petrol. Moreover, CNG has very low carbon footprints, making it one of the most environmental-friendly fuels. Thus, having a CNG vehicle can be a great way to make the ecosystem greener and better.

Ways to Install CNG in a Car

Many manufacturers in India have started manufacturing CNG cars to reduce the dependency on depleting resources like petrol and diesel. However, if you are considering getting a CNG car, you must also be aware of how you can get a car insurance policy for your CNG vehicle.

There are two ways that you can adopt to get a CNG vehicle. The first is getting a CNG kit installed in your old car and the second is purchasing a new CNG car. Whatever be the case, both these ways will affect your car insurance premium. Therefore, let us understand them one by one:

  1. Installing an External CNG Kit

    The first option you can opt for is getting an external CNG kit fitted in your existing petrol/diesel car. However, your existing car insurance policy won't suffice to cover you for getting a CNG kit installed. Thus, your insurer must know as soon as you plan to get an external CNG kit installed in your vehicle.

    If you are getting a CNG kit installed in your car, you must do the following:

    • Firstly, inform your RTO about getting a CNG kit fitted in your car so that they can update your RC book.
    • Next, inform your insurer about the modification you have done to your car so that they can change your four-wheeler insurance policy to cover your CNG vehicle. The insurer will most likely increase your policy coverage, which will have an impact on your premium as well.
  2. Buying a New CNG-fitted Car

    Purchasing a CNG vehicle is an easier option as you are not required to do much in this regard. The registration of your vehicle is done once you have purchased a CNG vehicle. Thus, the RTO is already aware of the CNG vehicle and issues an RC book with a CNG seal on it.

    Moreover, when you purchase a CNG car, you buy a new car insurance policy. Thus, the insurer already knows about the CNG vehicle and provides you with a CNG car insurance policy for your four-wheeler.

You May Also Read: Things to Know Before Installing a CNG Kit in Your Car

Impact of CNG Kit on Your Car Insurance Policy

Now that you know the two ways of getting a CNG vehicle, you must also know how getting a CNG kit fitted in your car impacts your motor insurance policy. Here is how CNG impacts your four wheeler insurance premium:

Insufficient Coverage

When you get a CNG kit fitted in your old car, your existing car insurance policy ceases to cover this alteration. This is because your existing four-wheeler insurance policy only covers your car for the existing fuel capacity i.e. diesel or petrol.

When it comes to CNG kits, the cost of maintenance and damages is higher, which also increases the liability of your insurer. As a result, there is an increase in your existing coverage.

Thus, if you want your car policy to also cover the cost of a CNG kit installed in your car, you must inform your insurance company and expand the coverage of your existing motor insurance policy.

Increased Premium

As stated above, a CNG kit carries a higher maintenance cost, which increases the coverage of your existing car insurance policy and you are ultimately required to pay a higher premium.

When it comes to charging a premium for CNG fitted cars, the IRDAI has fixed the third-party liability premium at Rs. 60 for CNG kits, which are installed externally or are already factory-fitted. Thus, a policyholder will have to pay Rs. 60 extra towards your liability-only car insurance policy.

The inclusion of a CNG kit is also offered under a comprehensive car insurance policy, thus, increasing its premium amount. Therefore, whichever coverage you choose for your CNG fitted car, your motor insurance premium will increase.

Requirement of an Endorsement

When you get a CNG kit fitted in your car, you have one more formality to follow, which is getting an endorsement done to your existing four-wheeler insurance policy. An endorsement is done by your insurer to your car policy whenever you get an alteration done, such as getting a CNG kit installed in your car.

Thus, you need to request an endorsement of the installed CNG kit from your insurance company. In case you fail to request one, the car insurance company may consider rejecting your claim during accidental damage.

Using CNG Car Insurance Premium Calculator

If you are looking to purchase car insurance online for your CNG car, you must consider calculating the motor insurance premium that you will be required to pay beforehand. You can do so with the help of a CNG car insurance premium calculator.

Using this calculator, you can compare the car insurance premium of multiple insurers and find the most suitable plan for your car. To calculate CNG car insurance prices using this calculator, you need to enter details like car make, manufacture, variant, location, etc. and the online tool will calculate the motor insurance premium for your CNG car.

Wrapping Up!

The dependency on petrol and diesel has increased fuel prices around the country. Moreover, both these fuel types are not sustainable for the environment, thus, increasing the need for an alternative fuel like CNG in the market.

By installing a CNG kit in your car or purchasing a new CNG car, you can not only opt for a cheaper alternative but can also reduce the carbon emission levels of your car. Additionally, you must also consider getting an appropriate car insurance policy to adequately cover your CNG car.

Written By: PolicyBazaar - Updated: 18 August 2022
You May Also Like
  • Transferring Car Insurance from One Person to Another
    Transferring Car Insurance from One Person to Another

    Transferring Car Insurance from One Person to Another An integral part of selling a car, for both the buyer and the seller, is ensuring a successful car insurance transfer to the new owner. But sadly, most people have...

    read more
  • 9 Secrets That Your Motor Insurance Provider Won’t Tell You
    9 Secrets That Your Motor Insurance Provider Won’t Tell You

    9 Secrets That Your Motor Insurance Provider Won’t Tell You Due to the dangerous driving conditions, it is compulsory to have third party insurance for every vehicle plying on Indian roads. It ensures the overall saf...

    read more
  • Money Saving Advice for All Car Owners
    Money Saving Advice for All Car Owners

    Money Saving Advice for All Car Owners After a dream home, a dream car is your second-largest purchase that you make in your lifetime. But the expense does not cease when you drive off the car dealer's lot. Read mor...

    read more
  • Difference Between Comprehensive Insurance and Third Party Insurance
    Difference Between Comprehensive Insurance and Third Party Insurance

    Difference Between Comprehensive Insurance and Third Party Insurance Comprehensive insurance is insurance coverage that pays for the repair or replacement of vehicle damages resulting from an incident. Comprehensive ca...

    read more
  • Types of Motor Insurance
    Types of Motor Insurance

    Types of Motor Insurance The word Motor broadly covers a lot of classes of vehicles plying on the roads. These may be two-wheelers like scooters and motorbikes, three-wheelers or four wheelers like private cars, jeeps, ...

    read more

Find similar car insurance quotes by body type

Hatchback Sedan SUV MUV
insurance-ka-superhero
Search
Car insurance save up to 85
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
Calculate your car IDV
IDV of your vehicle
Calculate IDV
Calculate Again

Note: This is your car’s recommended IDV as per IRDAI’s depreciation guidelines.asdfsad However, insurance companies allow you to modify this IDV within a certain range (this range varies from insurer to insurer). Higher the IDV, higher the premium you pay.

Policybazaar lets you compare premium prices from 20+ Insurers!
Compare Prices

Why buy from Policybazaar?

  • 24x7 Claims Assistance
    NEW
  • Cashless Assurance
  • 3-Day Repair Assurance
  • Free Pickup & Drop
  • Self Video Claims
  • Windshield Claims At Home
View Plans

Car insurance articles

Recent Articles
Popular Articles
Know All About Pay As You Drive and How You Drive Insurance

21 Sep 2022

Are you also worried about high motor insurance premium rates?...
Read more
Renew Your Car Insurance Policy with the AI-Based Technology

12 Sep 2022

As per the Motor Vehicle Act, 1988, every car owner must possess...
Read more
Why Should You Choose a New India Car Insurance Policy?

24 Aug 2022

Buying a car insurance policy is one of the best ways to protect...
Read more
How to Save Tax on Electric Vehicles (EVs)?

23 Aug 2022

Electric cars are known as the future of the automotive industry....
Read more
How Can Modifications Affect Your New India Car Insurance?

05 Aug 2022

In India, car enthusiasts love to modify their cars with...
Read more
Getting Your Duplicate Car Insurance Policy is Easy-Here’s How!
Losing important documents, such as your car insurance documents, can be daunting. In such a state of affairs, the...
Read more
Multiple Ways To Check Your Car Insurance Status Online
All insurance companies in India now have a digital presence. It not only makes it easier to buy insurance online...
Read more
Check Car Insurance Status Online on Parivahan Sewa/ RTO?
In India, buying car insurance is a compulsion for every car owner. It doesn’t matter if you are an excellent...
Read more
Car Depreciation Calculator
If you are looking to purchase a new car or planning to sell your existing one, it is important to know how...
Read more
Transferring Car Insurance from One Person to Another
An integral part of selling a car, for both the buyer and the seller, is ensuring a successful car insurance...
Read more