Before purchasing your precious new car, most potential car buyers argue extensively about the gearbox. An automatic gearbox provides clutch-free convenience, while a manual gearbox offers a more engaging driving experience, enhancing your connection with your new car. Given that each gearbox has a unique combination of benefits, it is difficult to say with any degree of certainty which is superior.
Let’s examine the impact of the gearbox on car insurance and why.
- Operation Complexity
A manual gearbox indeed necessitates active participation from the driver in order to shift gears. Automatic gearboxes simplify this process through an onboard ECU (Electronic Control Unit), which uses fluid pressure to intelligently shift gears in the car. Although an automatic gearbox makes shifting gears easier, this sort of gearbox uses more sophisticated technology. Given the high cost of these components, this impacts the price of repair and replacement.* This is why a car with an automatic gearbox has a higher premium.
- The Overall Cost Of The Vehicle
The cost of automatic gearbox car models on the market is considerably higher overall due to the complexity of gearbox operation. This explains why the automatic version of an automobile is typically more expensive than the manual one.
Your third-party car insurance premium depends primarily on your vehicle’s cost, with , costlier vehicles leading to higher premiums.
- Location
If we calculate car insurance premiums throughout India, we see that the metros and larger cities have higher insurance costs than Tier 3 cities and smaller villages. This is so because cities typically have more traffic and more accidents and thefts. The insurer’s increased liability in a city where the likelihood of damage, threat, or loss is higher increases the insurance cost. Cities are more likely to experience traffic, so vehicles with automatic transmissions are recommended since they aid in smoothly changing gears.
In metro areas, opting for an automatic gearbox results in higher insurance rates compared to someone in a smaller town with the same car and gearbox.*
- Model, Maker, Type, And Year Of The Vehicle*
The manufacturer, model, and car’s characteristics are a few of the other criteria that affect the cost of auto insurance. Luxury cars will therefore have higher motor insurance premiums than conventional ones. Moreover, various automatic transmission types, especially in expensive vehicles, can increase car insurance costs. As a result, insurance rates for different automatic transmission models, such as AMT, CVT, DCT, etc., may undergo changes. The age of your car is also crucial for determining the cost of insurance because a car’s value decreases with age due to wear and tear.
The choice between an automatic and manual gearbox not only impacts your driving experience but also plays a role in determining your car insurance premium. While automatic transmissions offer convenience and ease of use, they often lead to higher insurance rates due to the associated costs of repairs and maintenance.* On the other hand, manual transmissions can provide a more engaging driving experience and potentially lower insurance premiums. When making this decision, it’s essential to consider both your driving preferences and budget, as they can significantly influence the overall cost of owning and insuring your vehicle. Ultimately, understanding the relationship between gear operation and insurance premiums can help you make an informed choice that best suits your needs and preferences.
^ Claims are subject to terms and conditions set forth under comprehnsive car insurance insurance policy .
*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.
