Manual versus Automatic Car Insurance - Effect on Insurance Premium

When it comes to transmission systems in cars, there are two variants available- manual and automatic. In India, manual cars already have a fan base due to their affordability. However, recently, automatic cars have gained popularity. But did you know manual and automatic cars impact your insurance premiums? Let’s learn about manual and automatic car insurance and how its premium varies.

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How is Car Insurance Premium Affected by Transmission Type?

Before knowing the effect of manual and automatic cars on car insurance premiums, let’s understand the difference between these two types of cars:

Manual Transmission Car

A manual transmission type refers to the standard transmission where the driver has to select the gears manually by operating a gear stick and clutch to move the car forward or backwards. In a manual car, there are five or six rear gears and one reverse gear. Each gear operates within a specific ratio. To drive a manual car, extensive driver input is required.

For newly learned drivers, handling a manual car can be difficult as it requires shifting gears and working a clutch. However, it is a fuel-efficient option and a low-maintenance car. The biggest advantage of a manual car is its lower purchase price.As a result, the car insurance premium for a manual car is comparatively lower than that of an automatic car.

Automatic Transmission Car

A car with automatic transmission is the opposite of manual transmission as it requires little driver input and is easy to learn. Usually, a driver takes significantly less time to learn to drive an automatic car. Also, it is a smooth and pleasant driving experience. The car is available in six to eight gears and is equipped with ECU (Electronic Control Unit) that guides the gearbox to work. Hence, an automatic gearbox operates the gear on its own and there is no manual intervention required.

Moreover, the resale value of automatic cars is higher than manual cars. Although automatic cars are slightly higher in price, this factor can be overlooked by other factors.

Furthermore, the automatic car premium is slightly higher than that of a manual car because the cost of repairing or replacing an automatic gearbox is higher.

Manual Car Insurance and Automatic Car Insurance

Manual car insurance refers to the motor insurance policy designed for manual cars. They can only be purchased for cars that run on a manual transmission system. On the other hand, automatic car insurance is designed to provide coverage for cars that run on an automatic transmission system.

Effect of Transmission System on Manual and Automatic Car Insurance Premium

The car insurance price is based upon several factors like the capacity of the engine, location, age of the car, its model, variants, chosen coverage, add-on covers, deductible, etc.

The only difference between the manual car and automatic car is their gearbox, and the cost of replacing or repairing an automatic gearbox is higher than a manual gearbox. As a result, automatic cars are a bigger liability for insurance companies than manual cars. Therefore, insuring an automatic car costs more than insuring a manual car.

Nonetheless, the difference in cost of manual car insurance and automatic car insurance is marginal and not substantial.

5 Tips to Maintain Your Automatic Car

As the price of insuring an automatic car is high, the car owner must maintain his/her vehicle in perfect condition. Here are 5 simple tips for keeping an automatic car in a good state-

1. Routine Maintenance

   To maintain an automatic car, you should regularly check the car transmission fluid. Contaminated transmission fluid or low fluid is a common problem leading to other issues, like overheating, wearing down prematurely or grinding gears. To avoid this, it is essential to check your transmission fluid levels monthly, quarterly or at least once a year.

   Moreover, you should replace the transmission fluid if it is low, dark in colour or smells like a rotten fish. You must also change the transmission fluid if you have driven the car for 30,000 to 50,000 miles since the last time it was changed.

2. Service Your Engine’s Cooling System

   An engine cooling system in the car prevents the engine from overheating. Moreover, it ensures that the transmission fluid flowing through the gearbox is cooled too. Therefore, you must ensure that your engine cooling is in excellent condition.

3. Never Change the Car Gears While it is Moving

   Avoid moving quickly between the forward and reverse gears while driving. Try to bring the car to a complete stop before shifting the gears. Not following this might lead to wear and tear.

4. Do Not Put Pressure on the Brake

   Do not put pressure on the brake pedal as it will add a lot of extra strain to your engine and transmission. Therefore, you should be careful while using the brake in stop-and-go traffic. Also, utilise the parking breaks when the car is parked on an incline or decline. It will reduce the stress on the parking linkage.

5. Take Care of Your Car's Engine

   Your car is an assembly of mechanisms with lots of working parts, frames, and panels. If its engine is not functioning perfectly, it will put more pressure on the transmission. Therefore, you must take care of your car’s engine and transmission to control various problems and risks.

Final Words

The car insurance premium for your automatic car is higher than a manual car as the repair or replacement cost for the automatic gearbox is higher. Therefore, it is essential to keep your car in a good condition. Also, do not forget to follow all the above-mentioned tips to maintain your automatic car.