By Should you go for a petrol or diesel car? This article can help you decide:
Cost Of vehicle:
Diesel-powered cars cost more than petrol-powered ones. The car insurance price depends on the vehicle’s cost. The higher the vehicle cost, the higher the price of insurance.
Repair Cost:
Diesel car repairs are expensive. Thus, such vehicles have higher car insurance prices. This also applies to luxury cars and vehicles with costly spare parts.
Other Factors Affecting Car Insurance Premiums:
A combination of factors determines how much the insurance company may charge to insure a car. Beyond just the cost, here are some factors that may influence the company’s car insurance premium calculator.*
- Location – A vehicle’s insurance cost may be higher if it is driven in a metro city than the cost of insuring a vehicle in a Tier 3 city.
- Type Of Plan Chosen – A comprehensive plan may cost more than a basic third-party plan. The final cost of the new car insurance premium may increase. This may depend on whether or not you opt to go for add-ons along with your comprehensive plan.*
- Insured Declared Value (IDV) – IDV is the maximum sum insured fixed by the insurer, provided on theft or total loss of the insured vehicle. With the ability to choose the IDV of their vehicles, policyholders can manipulate their premiums. As a thumb rule, note that lower IDV can result in lower premiums and vice versa.*
- -Theft Devices – These devices are designed to ensure that you don’t become a victim of car theft. If you install them, your insurance company can provide car insurance benefits like concessions on insurance premiums. Take this precaution using anti-theft devices certified by the Automotive Research Association of India (ARAI).*
Petrol vs Diesel: Crucial Points To Consider:
Apart from the fuel’s impact on the car insurance premium, your decision to purchase a diesel/petrol car can also be made based on the following points:
Cost Of Fuel In Your Location:
The price of petrol or diesel varies by state in India. Prices change frequently and diesel costs less than petrol overall. Diesel cars are good if you’re concerned about fuel costs.*
Fuel-efficiency:
A petrol car’s mileage is higher in case of a short journey. Diesel is better for long rides. Therefore, it’s important to decide based on your daily commute.
Money Spent On Maintaining the Car:
Diesel used to be less refined in earlier times. Thus, upkeep was more costly. It’s no longer a problem; petrol and diesel cars spend similar amounts on regular maintenance.
The Resale Value Of The Vehicle:
Some prefer to switch cars frequently, while others prefer to stick with one. If you’re in the first category, you should know that the resale value of diesel cars is higher than petrol cars.
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*Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
