There was a time when diesel was only associated with trucks and other heavy vehicles, generally used for industrial operations and petrol with commonly driven passenger cars. Now, the times have changed, and car manufacturers around the world have started designing both diesel and petrol cars. Though with advanced technology, the manufacturers have managed to make diesel cars as efficient as petrol cars, it does make quite a difference in the functioning and performance of the cars. In addition to this, the type of fuel also impacts your car insurance policies.
We are here to give you a basic understanding of the impact of both diesel and petrol engines on car insurance premiums and help you make a better decision.
Petrol vs Diesel - Impact on Car Insurance Policy
Regardless of the fuel type, all cars are expected to have basic and mandatory third-party insurance which protects the policy-holder against any financial and legal liabilities, in case of damage or loss occurred to a person or property. An uninsured vehicle can lead to hefty fines or your license getting suspended. So, it is important to both buy and renew an insurance policy on time. Listed below are the key factors that impact your car insurance policy, based on the fuel of your car.
1. Cost of Vehicle: Car insurance premium cost generally depends heavily on the cost of the cars. Since diesel cars are more expensive than petrol cars, they tend to have higher premium costs than petrol cars.
2. Maintenance and Repair Costs: Insurance providers offer higher premiums for cars that have expensive spare parts and have a higher repair cost. This holds good for diesel cars and high-end cars.
Other Factors Affecting Car Insurance Premium:
The car insurance premium is not just determined by the costs of the vehicle and its maintenance, but by other secondary factors too. Some of them include the location where the car is driven, the type of policy chosen, the insured declared value of the car, anti-theft devices installed in the car, etc. Let us take a look at how these factors impact your insurance premiums.
Location: A car driven in a metro city is more likely to be involved in an unfortunate accident when compared to a car driven in a suburb or a rural area. So, this will also impact your insurance premium.
Type of Plan: Since the third-party insurance policy is mandatory, it has been made affordable for everyone. However, that’s not the case for a comprehensive plan. It is expensive and offers more benefits when compared to a basic third-party policy. Also, the premium costs will increase if you opt for some add-ons.
Insured Declared Value (IDV): The Insured Declared Value or IDV is the estimated market value of your vehicle. The lower the IDV, the lower the premium costs and vice-versa. So, it is always important for you to set the right IDV for your insured vehicle rather than going with the lowest or highest amount.
In addition to the above-mentioned ones, there are other factors like anti-theft devices, fuel efficiency, your car’s resale value, etc that determine your insurance premium costs. The cars powered by both fuels have their own set of pros and cons. Petrol cars offer lower premiums, but on the other hand, if you are someone who requires to cover longer distances more frequently, a diesel car would be more economical and offer better mileage. Ultimately, it is your decision to make on whether to buy a petrol car or a diesel car. But, we hope you make a better decision by taking the above-mentioned points into consideration