CNG car insurance

CNG Car Insurance

Since the government started escalating fuel prices, people are aggressively shifting from petrol to CNGs as it is less polluting and may help you save money. Whether you currently drive a CNG vehicle or are considering switching from gasoline to CNG, you should be aware that your standard auto insurance will cover it.

If you decide to install a CNG kit in your automobile, you need to adhere to the established method for including a CNG kit in your auto insurance. You will need to pay an additional premium to install a CNG kit because it is a premium bearing endorsement.

Importance of Insuring Your CNG Kit Separately

You can pay a nominal price to get your car’s CNG kit insured once it has been installed.

Your car’s CNG kit is a great substitute for gasoline and diesel since it provides better mileage at a lesser price. There is no doubting the importance of insuring the gear because it offers financial security in the event of unintentional accidents.

For liability coverage and own damage coverage (accidents, fire, theft, man-made calamities or natural catastrophes, most individuals think about insuring their CNG kit.

You stand to lose more than you gain if you forget to add coverage for the installed CNG kit to your existing auto insurance policy, or if you fail to upgrade it. Therefore, you should always consider including the CNG kit in your insurance coverage as soon as you install it in your car.

The insurer will need to assess your automobile and provide their approval before you can declare the CNG kit under your insurance policy. You must adhere to the entire procedure and provide the necessary documentation to the insurer as and when requested during the inspection and approval process.

You must install the CNG kit in your vehicle according to the right process to have it covered by the same insurance.

Importance of Insuring Your CNG Kit Separately

Here is the list of the potential benefits of installing CNG in your four-wheeler.

  1. Better Efficiency and Mileage

You would observe a significant improvement in your car’s mileage after installing the CNG kit. Using less fuel to travel the same distance Additionally, CNG is cheaper than gasoline by a factor of two or more. It’s not that horrible to save a few thousand rupees a month on fuel. CNG is by far the more effective fuel.

  1. Saves You From Adulterated Fuels:

Contrary to gasoline or diesel, which are both easily adulterated, CNG is practically never contaminated. Your car could be put in danger if the fuel is contaminated in any way. You always receive what you pay for because classic short charging schemes, which are relatively simple to use at petrol and diesel points of sale, do not work on CNG sales due to the very nature of the fuel.

  1. CNG Kit Enhances the Life Span Of the Engine

A CNG kit lengthens the life of the engine in your car because it uses less gas. It does not contaminate or thin the oil already existing in the crankcase; it merely improves the quality of the lubricating oil. The fact that CNG enters the engine as a gas rather than other fuels like diesel, which enter the engine as a spray and further accelerate engine depreciation, is another significant advantage of choosing CNG.

Many CNG Kit Dealers offer all car owners a sample catalogue for their vehicle that includes a detailed explanation of how to install such kits in the vehicle.

How To Insure Your CNG Vehicle?

When Buying a New Vehicle with a CNG kit

If you just purchased a new vehicle with a CNG kit, you will need to adhere to the following steps.

  • When you purchase a brand-new car with a CNG kit, the registration of your car happens after the kit is installed in the car. As a result, the CNG kit that is installed in the car is known to the RTO.
  • The RTO would stamp the RC book with a CNG seal to indicate that the car is a CNG vehicle.
  • When you subsequently insure your car, you give the insurance company a copy of the vehicle’s RC book because it’s a crucial document.
  • The insurance company can see the CNG seal after acquiring a copy of the RC book.

Therefore, the CNG kit that was placed in the car will immediately be covered by the company. The cost of the CNG kit would be factored into the policy’s premium calculation as well.

When you Install a New CNG Kit in an Existing vehicle?

If you have just installed a new CNG kit in your beloved drive, you will need to perform a series of steps mentioned below. Let’s take a look at them.

  • You would need to submit a modified copy of the RC book that has the CNG seal and notify the firm that the CNG kit has been installed in the car.
  • The company requests an inspection before making adjustments to your current auto insurance policy to include coverage for the installed CNG kit.
  • The higher worth of the car as a result of the CNG kit installation would be taken into account when calculating a new premium.

Impact of CNG kit On Your Car Insurance Premium

Numerous variables, such as the fuel type and the Insured Declared Value, influence an automobile insurance price (IDV). Both of these will change if you install a CNG kit in your car. 

A CNG Kit in your car may significantly your car insurance premium in the following ways:

  1. Hiked Premium

As was previously said, CNG-capable vehicles require extensive maintenance. As a result, your insurer will charge you a high premium for your CNG-equipped vehicle. You will be required to pay an increased vehicle insurance premium whether you choose to purchase a third-party car insurance policy or a comprehensive insurance plan.

  1. Inadequate Protection

The current insurance policy is insufficient if you are putting the kit in your vehicle. The cost of maintenance and repair for CNG kits is considerably higher in the event of damage.

You must notify your insurer and increase the current insurance plan’s coverage in order to include the CNG kit.

  1. Endorsement from the insurer on the car’s policy

The conversion of CNG is typically covered by your insurance plan. The installation of a CNG kit resembles a significant car modification.

You must include it in your insurance policy. The entire car is affected by its malfunction; hence it is classified as consequential damage. Additionally, the list of exclusions among insurers typically excludes consequential losses.

You need an endorsement from your insurance provider on the policy for your automobile in order to insure the kit. Your entire insurance will become void if you don’t finish it.

Let’s take an example to understand!

A high-quality CNG kit, for instance, may cost around Rs 50,000. Now, supposing your insurer requests a 4 percent premium increase based on the kit’s value, you will need to fork over an additional Rs 2,000. It is a sensible decision to purchase a CNG car or have a CNG kit fitted down the road because it will not only be economical in the long run but also environmentally friendly.

For Vehicles that come with CNG kits

Any other type of vehicle can be insured, just like a pre-fitted CNG car. When purchasing or renewing insurance, you can simply update your RC booth with a CNG seal and make mention of the fuel type.

You should be aware, though, that the rate you receive will probably be a little higher than the insurance premium for the same automobile using either gasoline or diesel.


Whether you buy a new car or upgrade an older one, it’s crucial to get your CNG kit insured. So, whenever you install a kit in your CNG car, make sure it’s insured. The procedure is quite simple, and after you complete it, you can benefit from a greater range of coverage for your car.

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