CNG Cars and Insurance Costs: What You Need to Know
The rising popularity of CNG cars in India is driven by their eco-friendly nature and fuel cost-effectiveness. But how does opting for a CNG car impact your car insurance? This guide explores the key aspects of CNG car insurance and its associated charges. 1. Impact of CNG Kit on Insurance: Coverage for CNG Kit: A standard car insurance policy might not cover a CNG kit installed later. You'll need to inform your insurer about the CNG kit for proper coverage. Increased Coverage: Including your CNG kit in your policy increases the overall insured declared value (IDV) of your car, potentially leading to slightly higher premiums. 2. Types of CNG Car Insurance: Third-Party Liability (Mandatory): This basic coverage protects against any damage caused to a third party's vehicle or injuries in an accident you are responsible for. The IRDAI (Insurance Regulatory and Development Authority of India) mandates a fixed premium increase for CNG kits under third-party liability policies.