Car
How Fuel Type (CNG vs. Diesel) Impacts Insurance
When planning to buy a car, the most common considerations are mileage, comfort, and performance. But do you know there is one more significant factor that quietly affects your expenses, and that is the fuel type of your car. People generally think that the fuel type simply affects the running costs, but is that really it? The answer is no. Your fuel type impacts your car insurance coverage, premiums, and even claims.
Say, you recently installed a CNG kit in your car, thinking it would help you save on petrol costs. Fast forward a few months, and a minor car accident occurred. You were calm, thinking your car insurance has got this covered. But surprise! Your insurers reject the claim because you never declared the CNG kit.
As a car owner, it is natural to consider factors like mileage or resale, but it is different for insurance companies. They see your fuel type as a risk signal, calculating the chances of claims, repair costs, and more. Continue reading to discover how the CNG vs diesel debate extends beyond the pump, affecting your car insurance premiums.