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CNG car insurance: How to add CNG to car insurance?

Team AckoNov 17, 2021

As fuel prices increase and we become more environmentally conscious, more people are switching to cars that run on alternative fuel. A car running on Compressed Natural Gas (CNG) is an excellent alternative since it is less polluting and can save you money as it offers better fuel efficiency.

Whether you own a CNG car or plan to instal a kit, you must include the CNG kit in the policy for legal requirements and protect yourself financially in case of accidental damages. In this comprehensive guide, we’ll discuss CNG car insurance and how it impacts the premium.

CNG Car Insurance

Car insurance for CNG vehicles: How to add CNG in car insurance?

In an effort to scale down on petrol or diesel dependency and reduce greenhouse gas emissions, CNG-powered cars are now being produced by most car manufacturers in India. You also have the option to fit a CNG-kit in a petrol-powered car. In either case, you must insure the vehicle and, most importantly, inform your insurer (in this case, ACKO) about the inclusion of the CNG kit.

Insurance for brand new CNG cars

ACKO offers insurance for brand new cars at affordable rates. If you have purchased a brand new CNG car, you can reach out to us by calling 1800 266 2256 or writing to us at [email protected] to insure your new car. 

You can also visit our website or mobile app, provide your contact and car details, and our support team will get back to you with an insurance quote for your CNG car.

Insurance for old CNG cars

ACKO offers low-cost insurance for all types of vehicles. With a direct-to-customer model and 100% digital transactions, we can design affordable insurance plans for old CNG cars. 

If you have installed a CNG or LPG kit in your car, you can call or write to us. You can also insure your old factory-fitted CNG car with ACKO by following the instructions mentioned above. We will take care of insuring your CNG car at an affordable price.

What are the advantages of a CNG vehicle?

CNG cars have become popular in the recent past due to several reasons. Here are the pros of a CNG car.

  • Fuel efficient compared to petrol or diesel cars.

  • Environment-friendly since it has very low levels of carbon emissions.

  • Suitable for the car’s engine since CNG is considered one of the cleanest fuel types.

  • Lower maintenance costs compared to a regular petrol or diesel car.

  • Safer since CNG fuel storage tanks are stronger, reducing the likelihood of accidental leakage.

  • Sustainable and economical than petrol or diesel cars.

How to get a CNG kit installed in a car?

Here are the two ways you get a car with a CNG kit.

A. External installation

You get a CNG kit installed in your old car and run the vehicle in both petrol and CNG. Typically, the kit is installed in the boot of a car. Since this is part of your old car, you also need to insure the kit.

B. Internal installation

With a rise in customers opting for CNG fuel as an alternative to petrol or diesel fuel, car manufacturers are pre-installing the CNG kit in cars. Since the kit is part of your new car, the equipment will be included in the insurance plan you opt for.

Impact of CNG kit on your car insurance premium

The CNG or the LPG kit installed on your car affect the car insurance policy in several ways.

1. Insufficient coverage

If you are installing the kit in your car, the existing insurance plan is insufficient. CNG kits require higher maintenance and the cost to repair in case of damage is also higher. 

To cover the CNG kit in the existing insurance policy, you need to inform your insurer and expand the current insurance plan’s coverage.

2. Higher premiums

As per the Insurance Regulatory and Development Authority of India (IRDAI), a premium is charged for liability cover and Own Damage cover for CNG fitted cars. The industry regulator has fixed the liability premium at Rs. 60 (subject to change) for CNG cars (installed externally/factory-fitted). 

The CNG kit is also covered under the Own Damage component; hence, insurers charge a premium for the coverage. The addition of the CNG kit results in higher premiums compared to petrol and diesel-powered vehicles.

3. Need of an endorsement

Installing a CNG kit to your vehicle is considered to be an alteration to the car. With the change of the fuel type and inclusion to the insured vehicle, you need to add it to your insurance policy. 

You need to request an endorsement of the CNG kit from your insurer. If you do not request the endorsement and in case of accidental damage, the insurer might consider rejecting your claim.

CNG car insurance premium calculator

A CNG car insurance premium calculator is an excellent source of understanding how the premium is calculated or determined. The calculator also lets you find the most suitable insurance plan for your vehicle. 

Most of all, the tool saves your time by providing approximate details of the insurance cost and coverage details immediately so that you can make the right decision. You need to enter a few details of your CNG vehicle such as the model, year of manufacture, fuel type, location, etc., and the tool will automatically calculate the car insurance premium for a CNG car.

Why choose ACKO car insurance for your CNG vehicle?

ACKO is a licensed digital general insurance company offering products and services through the online platform. Here are some of the reasons why you should choose ACKO car insurance for your CNG car.

1. Incredibly low premiums

You get to buy vehicle insurance for your CNG car directly from us. There are no middlemen; hence, we don’t pay commissions. The savings are passed on to you as low-cost insurance plans.

2. Super easy claims

We provide paperless claims and offer to pick and drop your car, get it repaired and deliver it back to you in three working days. So sit back and enjoy while we get your vehicle repaired.

3. Discounts and offers

We may offer personalised discounts during special festivals or occasions. You get to save money when you insure your CNG car with ACKO.

Importance of insuring your CNG kit separately

The CNG kit fitted to your car is an excellent alternative to petrol and diesel since it offers better mileage at a lower cost. Insuring the kit is crucial since it provides financial protection in case of accidental damages. Here is why it is important to insure your CNG kit separately.

  • Liability coverage

  • Own Damage coverage (accidents, fire, theft, natural/man-made calamities)

To know how to add CNG in insurance for your vehicle, refer to our section above for more clarity.

Things you should keep in mind about CNG vehicles

By fitting a CNG kit, you get to use an alternative fuel that emits lower carbon emissions while you enjoy fuel efficiency at an affordable price. It is essential to understand all the aspects of CNG kits before you opt for them. Read our article 8 Things to know before opting for a CNG kit to better understand CNG kits.

Why should you opt for a CNG vehicle?

Global carbon emissions have been on the rise along with the increase in fuel prices. Both petrol and diesel prices have increased over the past decade, and it is compelling to find alternative solutions to our transportation. Our article “Why is CNG better than other fuel types?” offers compelling reasons why you should opt for a CNG car.

Take away

It is essential to take care of our environment by switching to alternative fuels and reducing dependency on fossil fuels. While electric cars are still expensive to own and maintain, CNG cars are more relevant now and are also cost-effective. It is also important to take care of the kit by insuring it with a comprehensive insurance plan for wholesome coverage.

Here are some of the common questions about CNG car insurance.

What is ideal insurance for a CNG fitted car?

Insurance for your CNG fitted car should offer coverage for your vehicle against accidental damage, fire, theft, man-made and natural calamities, and third-party liabilities. It is ideal to choose the Comprehensive Car Insurance Policy for extensive coverage since it includes coverage for third-party liabilities and Own Damage cover.

How do I endorse CNG insurance with ACKO?

You can inform ACKO by calling 1800-266-2256, or you can send an email to [email protected] and will initiate the endorsement process.

How do I endorse a CNG kit in the Registration Certificate (RC)?

Approach the Regional Transport Office (RTO), where your car was registered, to initiate the process of endorsement of the CNG kit on the RC.

What are the implications of not getting the CNG kit covered under the insurance policy?

By not getting the CNG kit covered under the insurance policy, you will not get coverage for damages suffered by the kit. Also, your policy will be considered null or void in case of consequential damages to your vehicle incurred due to the CNG kit.

Can I insure my CNG car online?

Yes, you can insure your CNG car insurance online. Insurers such as ACKO offer 100% digital transactions when you buy insurance. There is no paperwork involved when you purchase insurance online with ACKO. Provide a few details of your car and previous insurance policy (if available) to insure your vehicle instantly.

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