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22 Sept 2021

While buying a car, there are a ton of factors to be considered such as the type, price, mileage, etc. Most people have different needs and requirements that affect which car they end up buying. However, every car needs at least a third-party insurance policy, as driving without car insurance is illegal. There are many factors that affect how car insurance is calculated, one of which is the type of fuel the car uses. In this article, we’ll take a look at the difference between petrol vs diesel cars and how it affects their insurance premiums.

Differences Between Petrol and Diesel Cars


Insurance premium depends on the value of your car. The higher the value, the higher is the cost of an insurance plan. When comparing petrol vs diesel cars, insurance is nearly 10-15% higher for the diesel variants due to the expensive components and replacement costs that the car insurance may have to bear in case of damage repair or parts replacement.

Price of the Car:

The price of petrol vs diesel car is one of the key factors that are taken into consideration when it comes to selecting the right one. Most buyers decide on a budget in which they buy one while looking for the options available in the market. When it comes to the diesel car vs petrol car comparison, it is often seen that the diesel variants are priced higher than their petrol counterparts by a difference of nearly INR 1 Lakh. As the cost of diesel cars is higher, the insurance premium goes up as well.

Car Maintenance:

 Just like the price, the cost of maintenance also differs among the two variants. Although servicing costs remain more or less the same, the components of a diesel car are comparatively expensive than the ones in the petrol variants. Hence, over the years, car maintenance and repair expenses have remained higher for the diesel variants, which in turn brings up the prices of the insurance premiums for diesel cars.

Fuel Efficiency:

Checking the fuel efficiency of a car is another main factor to consider when buying one. In this case, diesel cars provide greater performance when driving in higher gears, while petrol cars are good when it comes to achieving the initial power. Having said that, you can achieve higher fuel efficiency with diesel cars when compared to petrol ones in the long term.

Resale Value:

When it comes to the resale value of the car, diesel cars have a relatively higher resale value than petrol variants and depreciation is lower in diesel cars as well. As a result, the IDV of second-hand diesel cars is also higher, bringing up the price of the insurance premiums.

Pollution or Noise:

Petrol cars are relatively more environment-friendly than diesel ones as they produce less vibration in the car cabin and are less noisy.

Other Factors That Affect Car Insurance

From the above points, we have established that diesel cars are more expensive when it comes to car insurance, as the costs of repair and replacement of car parts are higher. Let’s take a look at some other factors that determine the premiums for car insurance.

  • Type of Insurance Plan:

The type of insurance plan you choose for your car, i.e., third-party insurance or comprehensive insurance determines the amount of money you have to pay as insurance premiums. Comprehensive plans offer a higher level of protection and thus are more expensive than third-party insurance plans.

  • Insured Declared Value:

The insured declared value is the highest amount of money that the insurance company is liable to pay in case of damage to the car or theft. Higher IDV of a car directly translates to higher insurance premiums. Many people choose to voluntarily bring down their car’s IDV for lower premium prices. However, doing this is risky, as you may receive a lower payout in the case of an insurance claim if the IDV of your car is lower than the actual value of your car.

  • Additional Riders:

When buying car insurance, you also have the option to buy additional riders for extra protection. These riders have to be bought on top of your car insurance and increase the cost of your insurance premiums.

  • Geographic Location:

Your location also impacts how your insurance prices are affected. People living in dense highly developed cities have to pay more in insurance as they are at higher risk of getting into accidents, as compared to people living in sparse rural towns.

Final Takeaway

Now while you have a brief idea of how you can get the right pick out of petrol vs diesel cars, the next step is to secure your drive! It is needless to say that whether you buy a diesel variant or a petrol one, accidents cannot be predicted or avoided. Hence, no matter what fuel type, your car needs the protection of a good car insurance plan. You can check out the various car insurance plans available at Bajaj Markets and enjoy features such as instant policy issuance, quick claim settlement and much more. 

FAQs on Petrol vs Diesel Car

  • ✔️Which car is better - petrol or diesel?

    Each fuel type has its own advantages and disadvantages. Petrol cars are cheaper to maintain and more environment-friendly. On the other hand, diesel cars give better mileage and performance over the long term life of the car.

  • ✔️Is it cheaper to insure a petrol or diesel car?

    It is cheaper to insure a petrol car. The insurance for a diesel car is higher, as the cost of maintenance and repair is higher.

  • ✔️Is it worth buying a diesel car over a petrol car?

    If you plan on going for long trips in your car, it may be more efficient to choose a diesel car as it gives better mileage over long distances. This could potentially save you a lot of money in fuel costs.

  • ✔️Are diesel cars bad for the environment?

    As compared to petrol cars, diesel cars generally emit more pollutants and are thus more harmful to the environment. The good news is that modern diesel cars are much more environment-friendly as compared to the ones of the past.

  • ✔️Which car insurance should you buy?

    Ideally, you should choose a comprehensive insurance plan that provides you with better overall protection as compared to third-party cover that only covers third-party liabilities.