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Manual Versus Automatic Car Insurance - Effect on Insurance Premium


Written by Amit Jain

Updated Oct 18, 2023

Manual Versus Automatic Car Insurance - Effect on Insurance Premium

Whether a car has an automatic or manual transmission, it is one of the key characteristics to think about while purchasing an automobile. Although some drivers prefer a manual transmission, automatic vehicles are increasingly and more common because of their convenience, particularly in metropolitan areas. However, regardless of the sort of vehicle you drive, one must insure it to provide financial security against third-party liability and vehicle damage.

Given the variety of vehicles available in the automatic and manual categories, it is important to understand how your auto insurance rate will change if you choose one over the other. Learn about the premium differences between automatic and manual transmission cars in this post. To know more about manual and automatic car insurance, read on.

Manual Versus Automatic Car Insurance - Effect on Insurance Premium

Manual Car System

A manual transmission type is a conventional transmission in which the driver must manually pick the ratios by using a gear shift and clutch to advance or retract the vehicle. A manual automobile has five or six rear gears, plus one for reverse. Every gear works within a predetermined ratio. A manual automobile requires a lot of driver input to operate. Handling a manual automobile can be challenging for inexperienced drivers since it entails using a clutch and changing gears. However, it is a low-maintenance vehicle with a fuel-efficient choice. The cheaper initial cost of a manual automobile is its greatest benefit. As a result, a manual car's insurance rate is significantly less than an automated one.

Automatic Car System

The contrast of a car with a manual gearbox is one with an automatic transmission since it requires less driver input and is simple to use. Learning to drive an automated automobile often requires much less time. Additionally, driving is easy and enjoyable. The vehicle has six to eight gears and an electronic control unit (ECU) that directs the gearbox's operation. As a result, an automatic gearbox drives the gear without the need for human input.

Manual Vs. Automatic Car Insurance

Having an automobile was formerly seen as a sign of luxury. Four-wheelers were once a luxury owned by only the wealthy. It has grown in importance recently. Almost everyone who lives, especially in metropolitan areas, owns a car, whether it is a hatchback or an SUV. You must get car insurance coverage if you own a vehicle. A car insurance coverage is quite beneficial, particularly in the event of vehicle damage and third-party liability.

Nowadays, while buying an automobile, consumers are sometimes undecided as to whether to get an automatic or manual vehicle. The argument between manual and automated vehicles seems to never end. Since, driving an automated vehicle is simpler, many people favour them. The rate you must pay for your auto insurance may change if you decide to get one, so keep that in mind. 

Insurance Coverage Price

Numerous important elements are taken into account when determining how much auto insurance will cost. The car's model, engine size, year of manufacture, location, and estimated market worth are some of the variables.
The transmission in the two automobiles is the sole distinction. This explains why an automatic vehicle typically costs significantly more than a manual vehicle, mainly when it comes to purchasing auto insurance. The cost of replacing or repairing an automated gearbox is higher than that of a manual gearbox. Therefore, we may conclude that an automated vehicle will have a higher insurance cost than a manual one. The difference in insurance costs is slight, though.


Due to the increased expense of replacing or repairing an automatic gearbox, your automatic automobile's insurance premium is higher than one for a manual car. Therefore, maintaining your automobile in excellent shape is crucial. Don't forget to repair your automatic vehicle by keeping in mind all the advice listed above.

Also read: Quick Process to Buy Car Insurance Policy Online

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Written by Amit Jain

Amit is an upcoming name in the motor industry be it new cars/ bikes or used ones. Amit in his last stint worked as a consultant for major Fortune 500 companies across the globe.&Read More


This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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