How Does the Choice Between a Manual and Automatic Car Affect Insurance Premiums?

Before purchasing a car, most car owners find it difficult to choose between two types of cars: manual cars and automatic cars. Needless to say, the manual cars feature a manual gearbox, and the automatic cars come with an automatic gearbox. While manual cars are widely popular because of their affordability and efficiency, automatic cars have their own fan base due to the convenience they provide. But it doesn’t matter which type of car you buy, you can not drive it without a four-wheeler insurance policy.

But do you know that the choice of gearbox dictates the price of your insurance premium?

That’s true.

Alongside factors like the type of policy and add-ons like zero depreciation car insurance, the type of gearbox also plays an important role in deciding the cost of your premium. In this blog, you will find all the necessary information on how choosing a manual or automatic car impacts the car insurance premium cost.

 What is the Difference Between Manual Cars and Automatic Cars?

Before discussing the impact of the choice of manual and automatic car versions on four-wheeler insurance premiums, it is important to understand the difference between both types of cars.

  • Manual Cars:

Manual cars come with a manual gearbox, and they require you to select and apply gears to manoeuvre the vehicle. Manual cars are widely popular for various benefits such as engaging driving experience, affordability, higher efficiency, low maintenance cost, etc.

Note that the owner of manual cars requires manual car insurance.

  • Automatic Cars:

Automatic cars have automatic transmissions instead of manual gearboxes, and they don’t require the driver to shift gears to propel the vehicle. Instead, they come with an Electronic Control Unit (ECU) that signals the gearbox on the basis of the accelerator pedal movement. While they may not offer a rustic driving experience, automatic cars are highly convenient and advanced.

Not to mention, the owners of automatic gearbox cars need to buy automatic 4-wheeler insurance.

 Impact of Manual and Automatic Cars on Insurance Premiums

The amount of car insurance premium depends on multiple important factors. This includes the type, model, manufacture year, fuel type, engine, registration location, current market value, type of policy, add-ons, etc.

Generally, the insurance premium for cars with automatic gearing systems is higher. This is because the automatic gearbox comes with a much higher repair cost as compared to the manual gearbox.

Suppose you are planning to purchase insurance for your Fortuner. You will find that the Fortuner car insurance price is different for its manual and automatic versions. The insurance premium cost of the automatic Fortuner is higher than its manual version because the advanced accessories have a higher repair cost which is a liability for the insurance company.


The cost of insurance premiums depends on whether the car has a manual or automatic gearbox. This is because the repair cost differs for both variants: it is higher for automatic cars and slightly lower for manual cars. However, several other factors come into play when deciding the car insurance premium. So, make sure to consider everything at the time of purchasing the right car insurance policy.

Frequently Asked Questions

 Is insurance cheaper for manual or automatic?

Insurance for manual cars is cheaper because they come with affordable car accessories and parts that can be repaired or replaced at a lower cost than automatic cars.

 Is insurance more on an automatic car?

Yes, the insurance for automatic cars is higher than its manual variant. This is because automatic cars feature an advanced gearbox along with other parts that result in a higher repair cost which gets added to the premium.

 Should I get zero depreciation car insurance for an automatic car?

Zero depreciation car insurance is a type of insurance scheme that comes with a zero depreciation add-on. It allows you to get compensation as per the original price of your car rather than its current market value. Because the purchase price of automatic cars is higher and their price is subject to depreciation, it is a good idea to buy zero depreciation car insurance. Alternatively, you can purchase comprehensive insurance with a zero depreciation add-on for broader coverage.

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