How Does Your Car’s Fuel Type Affect Your Insurance?

Your car is practically the greatest treasure that you own and something that you have a sentimental connection with. Investing in car insurance is the best decision you can take to protect yourself from the financial liabilities that come along with owning a car. Purchasing your car insurance will require you to invest in the premium amount. It is very essential to have a car insurance policy that offers you maximum coverage at an affordable premium. There are various determinants that impact the cost of your car insurance premium. And the fuel your car uses is also taken into consideration while calculating your car insurance premium. 

How Does Your Car’s Fuel Affect Your Insurance Premium? 

Initially, diesel was usually used only for heavy motor vehicles. Petrol was the most commonly used fuel for passenger vehicles which put it at the top spot. Today, technological innovations have made it possible for diesel to be used in passenger vehicles. The cars manufactured in recent times have combined the power of diesel or petrol with battery. Such cars are usually termed as hybrid cars. 

When it comes to insurance, the fuel type of your car is one of the determinants of the price of your insurance premium. Here is how your fuel affects the premium cost of your insurance:

• Cost Of The Car

The insurance premium amount is usually decided in terms of the existing market value of your car. Usually, a diesel-powered car costs more than a petrol-powered car. Therefore, the cost of the car has a major impact on the car insurance policy’s premium. If the cost of the car is more, then the cost of the premium will also be comparatively higher. 

• Repair Costs Of The Car

Usually, the repair costs of a diesel car is also at a higher range of price. This is mainly because of its different engine system when compared to a petrol-based car. The insurance companies will charge a higher premium amount because the compensation amount for repairing any damages to your car will also be higher than that of a petrol-based car. This is also true for other high-end cars and cars with expensive spare parts. 

• Maintenance Costs Of The Car

Diesel cars are usually more expensive when it comes to maintenance. It surely offers higher efficiency when compared to petrol cars, but at the same time, it also comes down to higher maintenance to ensure its efficient functioning. 

• Vehicle Resale Value 

If you plan on selling your diesel car, it usually carries more value than a petrol car. This is because of its long-lasting efficiency when compared to petrol-driven cars. Owing to the higher IDV, the insurance company is more likely to increase the cost of your premium as well as the claim amount. 

Take Away

Purchasing a car is not that simple. You must make sure that you cross-verify your needs and budget plans before purchasing a car. Moreover, the insurance you purchase should also be a thought-driven process. Having car insurance is mandatory irrespective of the fuel used by your car. Driving without car insurance can be held for a fine of up to Rs2000. Although, the fuel is definitely taken into consideration while determining the premium of your car insurance. The policy offers compensation for any loss depending on the terms and conditions listed in your policy. Make sure to have a car insurance policy and drive safe. 

Also Read:

How To Transfer Car Insurance To New Owner?

Top Factors That Determine The Premium of Your Car Insurance Plan 

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.