Petrol Vs Diesel: How Does Fuel Affect Your Car Insurance?

Does Car Fuel Affect Car Insurance Premium?

Does car fuel affect the cost of your car insurance? If so, why? Let’s find out in this blog about petrol VS. diesel cars and how each change affects your car insurance.

There was a time when cars were used mainly on petrol, while diesel cars were limited to cars, buses and other commercial vehicles. With the passage of time and demand things changed so car manufacturers started to produce diesel cars, which were also known as petrol models. And now, the car industry is triggered by the new models of petrol and diesel cars that the manufacturers are releasing every year.

In this blog, let’s take a quick look car insurance and whether the type of motor oil plays an important role in your plan.

Car Insurance by Car Type

There is a big difference between petrol and diesel cars. But do you know if your car’s fuel type affects your car insurance? Yes, most of them do because car insurance premiums offered by different insurance companies varies according to the type of fuel of the car and many other factors.

Therefore, having car insurance is a must for every car owner in India. So, whether you own a petrol, diesel or electric car, you need to buy car insurance to keep the car running smoothly on Indian roads. In addition, having a comprehensive auto insurance policy is considered a great protection against a number of auto related issues and damages. Therefore, it is important that you continue to renew your car insurance online every year so that the policy remains active and you continue to receive the benefits of the plan along with other benefits. For your convenience, you can use a Car insurance renewal fee calculator calculate your car insurance premiums during repairs.

Car Insurance – Petrol Vs Diesel – Factors That Affect Premiums

So, coming back to whether car insurance is affected by the type of car fuel, the following are two factors that have a major impact on car insurance.

1. Type of engine

When it comes to engines, the cost of diesel cars is usually higher than petrol cars. This results in a higher IDV or Insured Declared Value for diesel vehicles. Thus, it affects its value because the value of the car increases the more you pay.

2. Maintenance

Also, since the maintenance costs of diesel cars are high, the insurance will pay you more for your diesel cars.

Below are some factors to consider when choosing a petrol or diesel car:

As we mentioned earlier, there are many other factors that determine your car insurance besides fuel. This also determines your car buying decision – petrol vs diesel car. Some of these points are mentioned below:

  • Fuel prices in your area – Depending on the country you live in, fuel prices vary. In India too, depending on the country you live in, you may find a difference in petrol and diesel prices. However, diesel is generally cheaper than petrol. Therefore, many people prefer to choose diesel cars for their efficiency compared to petrol ones.
  • How well does this oil work? – In terms of efficiency and mileage, a gasoline powered vehicle allows a higher mileage compared to diesel vehicles, especially for short distances. On the other hand, when it comes to long roads diesel cars perform well. So, it also depends on your daily commute to decide between a petrol or diesel car.
  • The cost of repairing a car – In the past, diesel cars were very expensive to maintain as they were few and far between. However, now with the availability of many diesel cars, their maintenance is no longer a cause for concern. Therefore, their maintenance cost is almost the same as that of gasoline cars.
  • The resale value of your vehicle – It is important to note that used diesel cars fetch a higher resale value compared to petrol cars.

Other Things to Consider:

  • The insurance policy you want – Car insurance plans are more expensive compared to third-party insurance plans because comprehensive plans allow for more coverage than third-party basics. It also affects the cost of your car insurance.
  • Additional Cover – If you buy add-ons or riders with your car insurance plan, it will also increase your insurance. However, these extras can be worth it in the long run if your car sustains damage that requires extra money to take care of them.
  • The area where you live – The place you live or the place you own also determines the cost of your car insurance. People who live in cities have to pay more than those who live in small towns.
  • Installing anti-theft devices – If you have anti-theft devices in your car to protect the car from theft, it also reduces your car insurance premiums. This is because your car has a lower risk of being stolen.
  • IDV – The IDV or Insured Declared Value of your car, which is its market value, directly affects the value of your car. So, make sure that you set the IDV rate so that you can profit in the long run.

The end

To protect your car from damage it is important to look for a good car insurance policy. Depending on your car’s fuel type and other requirements, you can choose how much coverage you want for your car. Just make sure that you buy the right plan for the right car you buy so that your car is fully covered.

In this regard, a Car insurance needs a calculator It will help you find the right policy for your car.

Did you find this post informative? Browse PayBima Blogs read interesting articles about Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance and Investment part. You can visit PayBima Buying Insurance Online.


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