With ever-increasing fuel costs, opting for a budget-friendly option like CNG seems like an ideal alternative. If you wish to opt for CNG, you can do so in two situations. The first is while buying a new car. This is probably the best option as you will get a car pre-fitted with a CNG kit. Your car insurance policy will mention fuel type as CNG and the warranty of your car will remain valid for the stipulated duration.
Another option is to add a CNG kit to your existing petrol or diesel car. In this situation, one may encounter a few hurdles. First of all, you need to ensure that your CNG kit is genuine. Check that its installation is done correctly and that you get the fuel type changed in your car insurance policy. Once these things are in place, you can opt for a CNG kit and enjoy its benefits.
Before you make the final move, you need to be aware of not only the benefits offered by CNG but also a few disadvantages of installing this kit. Read ahead to know more.
- Things to know before opting for CNG:
- 1. A CNG kit may not be compatible with your existing car:
- 2. Installation and maintenance costs are high:
- 3. CNG is safer and cleaner than other fuel types:
- 4. CNG is not available at every gas station:
- 5. The premium of your car insurance policy may increase:
- 6. Change in fuel type may affect car insurance claims:
- 7. You will be saving a lot of money on fuel in the long run:
- 8. You may have to compromise your car’s performance:
- Is buying car insurance online more beneficial for CNG models?
Things to know before opting for CNG:
1. A CNG kit may not be compatible with your existing car:
Before buying a CNG kit you need to ensure that your car is compatible for its use. Not all cars are designed to accept fuel customization, especially older versions. Once you are sure that a CNG kit will work well with your car, you need to move to the next step that is, getting approvals.
You need to visit the Regional Transport Office and get some changes made to your Registration Card (RC). You need to get the fuel type changed on your RC from petrol/diesel to CNG. This process may take time. But you can use the vehicle legally only after getting your documents officially changed.
2. Installation and maintenance costs are high:
Buying a CNG kit from an authorized dealer can require a significant investment of money. A new and genuine kit may cost around Rs. 50 to 60 thousand as per your car’s make and model. On the other hand, maintaining a car that has a CNG kit installed may also prove to be more costly as compared to petrol or diesel variants.
You may notice that after a set period of time, you are ending up in a garage for maintenance more often than you used to when your car ran on petrol or diesel.
3. CNG is safer and cleaner than other fuel types:
Installing a CNG kit in your car offers a safer environment as compared to petrol or diesel car. CNG has a very high auto-ignition temperature, thus the chances of your car catching fire are minimum. This also makes CNG refueling stations safer than other types and the chances of mishaps are very low.
CNG is considered to be an environmentally friendly fuel alternative. This is because CNG emits less carbon as compared to petrol or diesel. It is not only good for human and environmental health but also a budget-friendly solution for regions with high fuel costs.
4. CNG is not available at every gas station:
When you buy a car that runs on petrol or diesel, you hardly have to think about the location of the nearest fuel station. This is because fuel pumps are available at short distances from one another in cities. This may not be true for a CNG station though.
Refueling stations for CNG may be far away from your location. Also, if they are less in number you will likely spend a lot of time in a queue for refueling your car. If you are looking to opt for a CNG kit, bear in mind these factors.
The premium of your car insurance depends upon various factors like make and model of your car, its ex-showroom price, the type of car insurance policy you buy, the fuel type of your car, etc. When you switch your car’s fuel type to CNG, expect a price rise of at least 10%. This will again depend upon your existing car insurance policy and car type.
It is advised that you do not wait till car insurance renewal for informing your insurer about the change in fuel type. Initiate an endorsement before car insurance renewal and as soon as you get the CNG kit installed.
6. Change in fuel type may affect car insurance claims:
Car insurance provides the much needed financial support at the time of car-related mishaps. But before your claim is accepted, your insurer will take a look at the insurance policy and the damaged car. The information on your insurance policy should match the details of the car. If there is any kind of mismatch in details, your claim will get rejected. Thus, if you do not inform your insurer about the change in fuel type and it gets damaged, your claim might not get honored.
7. You will be saving a lot of money on fuel in the long run:
As mentioned earlier the prices of petrol and diesel are skyrocketing with each passing day. As compared to these, driving a car with CNG can help you save money in the long run. It is observed that one may be able to recover the cost paid for buying a CNG kit within a couple of years if the car is used on a daily basis.
8. You may have to compromise your car’s performance:
You may not see a noticeable difference in the performance of your car if you use a CNG-only variant. However, those who have retro-fitted their model with a CNG kit will observe that the performance of their car deteriorates with time. The main reason for this is the toll changing fuel type takes on the engine of the car.
In petrol variants, the fuel itself acts as a lubricant for the valve as well as cylinder. However, with CNG to interfere in this setting the corrosion factor will be higher. As a result, you will have to look at servicing your car more frequently.
Is buying car insurance online more beneficial for CNG models?
Buying car insurance online is beneficial irrespective of the fuel type of your car. This is because when you buy car insurance online you pay less premium for the same set of features you would buy offline i.e through an insurance agent or from the branch office of an insurance company. Always spend time on searching for the correct type of car insurance policy before each renewal. It will be helpful at the time of claims.
Read informative Car Insurance Articles at Acko.
Read all our insurance & non insurance related articles here.