There was a time when it was difficult to associate diesel with commonly driven passenger cars. Petrol had the top spot. Diesel was relegated to serving trucks and other heavy vehicles engaged in commercial activities. Now, things have changed.

Technological innovations have reduced diesel’s drawbacks and it has clawed its way up in the passenger car market. That is one of the reasons why brands bring out petrol as well as diesel variants of their cars.

Petrol vs Diesel: Impact on Car Insurance and Other Crucial Factors - Acko

Diesel and petrol have their pros and cons. You have to choose what suits you the best. This article will throw light on the impact of a diesel and a petrol engine on the car insurance premium and help you in understanding things to consider while deliberating about purchasing a diesel-powered or a petrol-powered car.

Details of a Car Insurance Policy:

Whether you have a diesel car, petrol car, or an electric one, it is mandatory to purchase a car insurance policy. The policy offers financial cushioning in case of unfortunate car-related incidents. The insurance company settles the claim based on your car insurance policy’s coverage, and terms and conditions.

It is against the law to ride an uninsured vehicle. You need to ensure that you not only buy an insurance policy for your car but also renew it before the expiry period. There is no point if you drive with an uninsured policy. It will lead to legal consequences. You can be imprisoned as well. The fine for driving without an active car insurance policy is Rs. 2000.

Diesel, Petrol, & Car Insurance:

Here are some points that will explain the relation between a petrol-driven car/ diesel-driven car and car insurance. Note that these are generic points and they can vary for certain car models. Read ahead to get an overview and some assistance in your decision-making process.

Cost of Vehicle:

Generally, the cost of a diesel-powered car is more than that of a petrol-powered car. The cost of the vehicle has a direct impact on the car insurance policy’s premium. Higher the cost, higher the premium.

Repair Cost:

The repair cost of a diesel-powered car is on the higher side. Thus, insurance companies charge a higher insurance premium for such a vehicle. This is also true for high-end cars and those vehicles that have expensive spare parts.

Other Factors Affecting Car Insurance Premium:

The vehicle’s cost is not the only factor that determines its premium. There is a combination of factors that decides how much the insurance company will charge to insure a vehicle. Here are some top factors that are considered apart from the diesel/petrol car’s cost while calculating the car insurance premium.

Location – The insurance premium will depend upon where the car is going to be driven the most. The cost of insuring a vehicle will be more if it is driven in a Metro as compared to the cost of insuring a vehicle in a Tier 3 city.

Type of Plan Chosen – Buying a Comprehensive plan will cost more than a basic Third-party plan. If you choose to go for Add-ons along with your Comprehensive plan, the final cost of the premium will increase even more.

Insured Declared Value (IDV) – This is the approximate market value of the insured vehicle ascertained for insurance purposes. It has nothing to do with the resale value. Online insurers offer potential policyholders to choose the IDV of their vehicle from a range. Lower IDV = Lower Premium, Higher IDV = Higher Premium.

Anti-theft Devices – These devices are designed to prevent car theft. If you install them, your insurance company can provide a discount on insurance premium. Do take this precautionary measure by going for anti-theft devices certified by the Automotive Research Association of India (ARAI).

Also, read: 8 Advantages of Buying Car Insurance Online

Petrol vs Diesel: Crucial Points to Consider:

Apart from the fuel’s impact on the car insurance premium, your decision of purchasing a diesel/petrol car can be made based on the following points as well.

Prevalent Cost of Fuel in your Location:

The cost of petrol or diesel is not the same everywhere; it can be different from one Indian state to another. These costs keep fluctuating from time-to-time. Overall, diesel is usually less costly when compared with petrol. If you are too sensitive about the amount of money you will spend on fueling, you can go for a diesel car.

Fuel-efficiency:

The mileage offered by a fuel-powered car is more in case of a short journey. Diesel is better for long rides. Therefore, base your decision on your daily commute. Is it a long one or a short one? How often do you plan to go on long road trips?

Money Spent on Maintaining the Car:

Earlier, diesel was less refined. So, the maintenance cost was more. Now, it is not much of an issue. Therefore, when it comes to regular maintenance, the amount spent on a petrol-driven car and a diesel-driven car is almost the same.

The Resale Value of the Vehicle:

Some people like to keep changing cars while some like to stay committed to one for a long time. If you belong to the first category, then you should know that usually, diesel cars can fetch more money than petrol cars on being sold as a second-hand vehicle.

Also, read: Best Car Insurance for Young and New Drivers

Impact on the Environment:

Diesel is less environment-friendly as compared to petrol. However, both have a sizeable negative impact on the planet. In today’s times where climate change is a serious threat, one should be environment-conscious in all aspects, especially when it comes to a vehicle. If this is your main concern, then you can opt for an electric car instead of a petrol/diesel car.

Frequently Asked Questions:

Which is better, a petrol-powered car or a diesel-powered car?

There is no standard answer to this question. The answer is subjective. It can be different for different people. The points mentioned in the above section will help you understand if petrol is better for you or diesel. Go through the points in detail and make your own decision.

Are there other options than petrol and diesel?

Apart from petrol and diesel, you also have the option to go for a car driven on CNG. Besides, there are electric vehicles available as well.

Do petrol/diesel/CNG/electric cars need insurance?

Yes, all cars driven on Indian roads must have an insurance policy. The Third-party Liability policy is a must while the Comprehensive one is optional.

Can I convert my petrol car into a CNG car?

Yes, it is possible to convert your petrol car into a CNG car.

Is it advantageous to purchase car insurance online?

Here are the top reasons why you should purchase car insurance online.
>Researching plans is not a hassle
>Enables comparing policies
>Purchase at your convenience
>The premium charged is usually less as compared to offline modes
>No third-party (agent) interference and influence
>Car be purchased under five minutes
>Easy to renew

How can I make an informed choice while insuring my petrol/diesel car online?

Online insurance companies offer a lot of information on their website in order to be transparent. Make sure to read the features of the plan in detail before purchasing. If you are confused, you might benefit from speaking on a call with the insurance company’s executive. Buying car insurance online is productive, provided you make an informed choice.


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