Petrol vs Diesel: How Car Fuel Affects your Car Insurance Premiums?

Posted on: December 26, 2020, by :

There is often a debate on which fuel is ideal for a car in the long run as per individual needs and driving necessities. But what you may not be alert of is that the type of fuel used in a car does have an influence on the cost of your policy. In fact, you will find that the insurance cost for a diesel car is more than that for a petrol car. The reason is that diesel cars are costly and are driven for longer distances and they require proper maintenance.

Diesel vs Petrol Car Insurance

If you want to know to know how petrol or diesel car can affect the car insurance policy, then go through the below-mentioned points:

  • Repair Cost: The repair cost of diesel cars is more, thus, the insurers charge a higher cost for diesel cars. This fact is also correct for the high-end cars and those with costly spare parts.
  • Car Cost: The cars with diesel engines are generally costly than petrol-driven cars. The cost of the vehicle has a direct impact on its insurance. More the cost of the vehicle, more would be the insurance rates.

Other Factors That Affect Car Insurance Cost

The vehicle cost is not the only factor that determines the insurance cost. Several other factors as well decide the cost that your insurance provider might charge. Listed below are a few factors that are taken into consideration, besides petrol or diesel:

  • Insurance Plan Types: Buying a comprehensive car plan charges more than buying third-party liability cover. Apart from this, if you choose to add riders in your plan then your rate will increase again.
  • Anti-Theft Device: An anti-theft device prevents your car from theft. If you install such device in your car, then your car insurance provider will give a discount on the cost. Take this safety measure by setting-up an anti-theft gadget in your car.
  • Location: The place where you stay plays a key role in deciding the cost of your car insurance plan. The price of the car insurance is more if you are staying in a metro and it is much less when you reside in a tier-three city.
  • Insured Declared Value (IDV): This is an estimated market value of your car. It has nothing to do with the resale value of the car. Lower the IDV of your car, lower will be its insurance cost, and higher the IDV, higher will be its cost.


Thus, it is completely your decision whether you must buy a diesel or petrol car, but keeping the aforementioned points in mind can allow you to make a better decision. It can be said that diesel cars have more costly car insurance plans than petrol cars as they give more mileage when you drive an extensive distance daily.