Petrol and diesel prices have skyrocketed in the past couple of years which is becoming increasingly unaffordable for many. On the other hand, cars have become a necessity for convening and lots of individuals are purchasing an automobile for the travel needs. But exactly how do you afford driving a vehicle using the increasing fuel prices?The answer is easy – by opting for CNG fuel kit and reducing the fuel costs. CNG is very affordable and that's the reasons individuals go for CNG kits for his or her cars to lower their fuel costs especially when the vehicle can be used often. While fitting CNG kit is a great option to decrease your fuel costs, you need to know that CNG fitting affects your vehicle insurance policy and its premium. Do you know how?
CNG fitting is the one other modification to your car. As a result, you need to customize the associated car insurance policy too. You are able to go for two ways of having your car a CNG kit –
- You can fit a new kit inside your old car
- You can buy a brand new car having a pre-fitted CNG kit
The way you select would determine how you should start making alterations in your car insurance plan. Let's understand –
Way #1 – Fitting a new kit in an old car
If you fit a brand new kit in an existing car you have, you need to inform the insurance company of the fitting so the kit gets covered under the policy. Your existing insurance plan wouldn't be valid and you would need to change it out to reflect the alteration done to your vehicle. After you inform the insurance company, the company would issue a brand new policy since the CNG kit and the premium could be increased. You would have to pay the additional premium for insuring the CNG kit so that you can claim in case of any damages suffered. Besides informing the insurance company and getting your vehicle insurance policy changed, you should also inform the RTO from the CNG fitting so that the RTO puts a CNG seal on your RC book approving the fitting. This seal could be essential to authenticate the CNG kit you've fitted in your car. Actually, many insurance providers insist on the RC Book using the RTO's seal before they alter your car insurance policy to pay for the CNG kit.
Way #2 – Fitting a new kit in a new car
If, during the time of purchasing the new car, you need to obtain a CNG kit fitted, the operation is much easier. The registration of the new vehicle would be done following the CNG kit is equipped in to the car. As such, the RC Book would reflect the CNG seal. Thereafter, when you are for a car insurance, the company knows of the CNG fitting for your car and would issue you a policy since the kit and also the premium would also be charged accordingly.
Implications of not getting CNG kit covered under the insurance policy
In the first instance where you install a CNG kit in an old cart, many of you choose to avoid upgrading your insurance plan fearing the responsibility of more premium. While upgrading your policy is not compulsory, it is important. Here's why –
- Only when the policy is upgraded would you get coverage for that damages suffered by the CNG kit
- Since CNG cars tend to be more fuel efficient, you might use the car more often. This could increase the chances of claim and to get maximum claim settlement, upgrading the cover to include CNG kit is recommended
- If the policy isn't upgraded and also you make a claim, there's a possibility of claim rejection.
The additional premium payable for upgrading the insurance policy is a fraction from the cost which you'd incur in case your claim is rejected or maybe your claim doesn't cover the damages to your CNG kit. Fitting your vehicle with a CNG kit would reduce your fuel costs. Why don't you direct part of your savings to upgrading your insurance policy? The scope of coverage would increase and you can also get your kit covered. It might be a good move, wouldn't it?
