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Insurance Article

Planning to Get a CNG Kit? Here's What You Should Know

November 04 2016
CNG Kits for Car

Things to know before getting a CNG Kit

Spiralling petrol and diesel costs are enough to convince car owners to get a CNG kit. When petrol costs `72 per litre, diesel costs ` 60 per litre and CNG costs only ` 43 per kilogram*, it is obvious you will consider getting a CNG kit for your car.

A CNG kit can bring a stark improvement in your car's mileage. It can reduce the average cost per kilometre by ` 3 to ` 5 depending on your car's model. It is not only economical but also eco-friendly. But before you plan to buy it for your car, here are a few things you should know:

  • Compatibility and Licensing
  • Before getting a CNG kit you must check your car's compatibility with the CNG fuel system because not all cars are compatible with it. Even if your car is compatible, you will further need approval from the government to get a CNG kit.

    Getting an approval from the local authorities can be hectic and time consuming. Once approved, you will get a 'Registration Certificate' (RC) branded with “fuel change” after which you can use the CNG kit. However, if you plan to get the kit for a new car, it will take much less time than converting your old car and getting its RC stamped.

  • Installation and Maintenance Costs
  • A CNG kit demands a significant investment upfront and will cost you between ` 50,000 to ` 60,000, depending on your car’s model. The better part is that the same cost can be recovered within 2-3 years because of the low running cost.

    On a con side, although a CNG kit may be fuel efficient and economical in the long run, it may degrade your car’s performance resulting in low power and speed. Consequently, the maintenance cost will be much more when compared to petrol and diesel.

  • Not Available Easily
  • If you are planning to get a CNG kit for your car, it is advisable to re-fill your tank regularly because every filling station does not offer CNG. While going for long drives it is good to keep a note of CNG filling stations on your route and also keep an extra can of petrol/diesel for backup.

  • High Insurance Premium
  • The thousands of rupees a CNG Kit will save you every month may appear alluring at first instance, but your car insurance premium may rise at the same pace. This is because of high maintenance and damage repair costs associated with CNG cars.

    The actual premium amount will depend on your car's model and age. Therefore, it is always better to check with your insurer for complete details before installing the kit.

Are CNG Kits a Smart Choice?

CNG kits have their own pros and cons. On one hand, they are fuel efficient and environment friendly. On the other hand, you need to pay high installation cost at the beginning followed by regular maintenance costs and also a rise in car insurance premium.

Therefore, CNG is a viable option on a long run when you have plenty of years left with your car to take full advantage of it. However, if you plan to get it, it is recommended to buy a comprehensive motor car insurance that covers the maintenance cost associated with it.

*Prices as per Mumbai zone, applicable from November 15, 2016.

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