CNG Car Insurance

If you already own a CNG vehicle or are planning to switch from petrol to CNG and assumed that your regular car insurance would be enough to cover it, read on … because unfortunately, that’s not the case!

A CNG vehicle has tones of specific regulations that you need to follow when you upgrade your motor insurance, especially because CNG kit will affect your vehicle in a lot of ways, from its performance to the insurance premium, and even the impact on the environment. 

A car insurance premium is affected by a lot of factors, including its fuel type and the Insured Declared Value (IDV). When you add a CNG kit to your vehicle, both of these will be affected.  

In CNG cars, the premium amount is generally increased by Rs. 60, and some additional taxes are added to third-party-only policies. When it comes to a comprehensive car insurance policy, it depends whether your CNG kit came with the car or was fitted in later.

• For external CNG kits - When you’re fitting a new CNG kit into your car, remember to inform your insurer so that your policy can be upgraded. Generally, CNG vehicles need a lot of maintenance and they have a high installation cost (a good quality CNG kit can cost around Rs 50,000). This means your premium will likely increase by 4-5% of the kit value.
• For vehicles that come with CNG kits - A pre-fitted CNG vehicle can be insured the same as insuring any other type of vehicle. You can easily update your RC booth with a CNG seal and mention the fuel type at the time of buying or renewing insurance. However, you should know that the premium you will get will likely be a bit high as compared to the insurance premium of the same car running on either petrol or diesel.

Integrating a CNG kit into your vehicle or buying one with pre-fitted CNG is often seen as a solution to surging fuel prices.

But there are some precautions you should know before converting a car to run on CNG, apart from just getting a new CNG car insurance:

• Availability of fuel - Before you make the decision to shift to CNG, remember to check the availability of CNG fuel in your area, and how far you would have to go to reach the nearest CNG fuel station. Basically, check that you don’t have to spend too much fuel to refuel!
• Price versus performance - CNG vehicles are more fuel efficient, but as there is the fact that the vehicle’s performance may suffer when compared to a petrol engine. Running a car on CNG gives you the benefit of greater fuel efficiency, but one main drawback is that the performance of the car suffers. Compared to your petrol engine, the throttle response fades a bit; you won’t be getting the same punch from a CNG-run motor. Also, you might have to give your car for servicing more frequently. This is because while fuel acts as a lubricant for the valve as well as the cylinder, CNG does not. This might cause it to corrode faster.
• External or Internal CNG kits - There are two ways to have your vehicle fitted with a CNG kit – to add it in an old car or get a pre-fitted vehicle. But which is better? While it may work out cheaper to installing a new CNG kit in your own vehicle, you have to check the compatibility. It is recommended that you go for a factory-fitted CNG kit, as they come with a warranty and options for servicing that make up for the extra cost. 
• Maintenance cost - CNG vehicle require quite a lot of maintenance, especially compared to petrol vehicles. You need to get your vehicle checked regularly to prevent things like leakage, and wire losing their insulation.