What you need to know about CNG auto insurance

As gasoline prices rise, more individuals are opting for CNG automobiles. It is also less polluting and can help you save money. Whether you own a CNG vehicle or want to install one, you should be aware of how it may effect your car insurance policy.

Here are two options for outfitting your vehicle with a CNG kit.

1. Installation on the outside

You may install a CNG kit in your old automobile and run it on both gasoline and CNG. It will cost you roughly Rs 50,000, and you will also need to insure it.

2. Installation on the inside

As more people opt for CNG fuel, automobile manufacturers are pre-installing CNG kits in vehicles. This signifies that the equipment is already covered by the insurance policy.

What effect would a CNG kit have on your insurance premium?

Here's how your car insurance policy may be affected by a CNG or LPG kit.

1. Premium increase

CNG kits have greater maintenance expenses, which raises the premium coverage and, as a result, you must pay a higher premium.

When it comes to imposing a premium, the IRDAI has set the liability premium for CNG cars at Rs 60, regardless of whether they are placed externally or internally.

Because it falls under the Own Damage component, insurers charge a premium for the policy. However, it causes in higher rates when compared to gasoline and diesel automobiles.

2. Inadequate coverage

When you put a CNG kit in your car, your current insurance policy is rendered ineffective. It necessitates more care, and the expense of fixing damage is likewise higher. As a result, if you want your insurance policy to cover the cost of a CNG kit, you must notify your insurer and request that the plan's coverage be expanded.

3. A recommendation is required.

When you put a CNG kit in your vehicle, you must include it in your insurance coverage. You must request endorsement of the installed CNG kit. If you do not comply, the insurance may consider rejecting your claim.

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