Insurance warning for R12 petrol alternative in South Africa

Converting your car to run on alternative fuel sources may seem like a good idea to save money, but it also has the potential to cause a major headache with your insurance provider.

A growing number of motorists in South Africa are modifying their vehicles to run on liquefied petroleum gas (LPG), which is a substantially cheaper alternative to the normal petrol you get at a filling station.

While petrol 95 currently retails for R21.40 as of May 2025, LPG Autogas only costs around R12 per litre.

The problem is that cars are not designed to run on LPG, which means you will need to modify the engine so that it can support both petrol and LPG.

Doing so is not cheap, as it requires an engine conversion kit that can cost around R26,000, excluding VAT.

Needless to say, this also means that the conversion is not a minor process, which means it can potentially cause issues with your insurance provider.

What insurance providers say about LPG conversions

TopAuto contacted Naked Insurance to inquire about how an LPG engine conversion could potentially affect a person’s coverage.

Notably, it was stated that insurance companies are unlikely to cover a vehicle that has been converted if it compromises the car’s warranty.

“If a vehicle modification is significant enough to invalidate the manufacturer’s warranty, most insurers will decline to insure the car,” said Ernest North, co-founder of Naked Insurance.

“LPG conversions will generally fall into this category because of major modifications to the engine, suspension and other components.”

This ties into another issue highlighted by Kyle Hartley, managing director at Isinkwe Energies, which is a leading proponent of LPG Autogas in South Africa.

Hartley explained that only five vehicle manufacturers currently approve of Isinkwe’s LPG modification kits and will honour the car’s warranty post-conversion.

Unfortunately, he did not clarify which five brands in South Africa this refers to.

This means that motorists who are interested in converting their cars will need to check with their manufacturer to see whether they will void their warranty and service plan by doing so.

Similarly, it is vital that you check with your insurer before you go ahead with the conversion as most providers will be unwilling to cover a model if the vehicle manufacturer is also unwilling to honour the warranty.

North warned that LPG conversions will also affect the risk profile of the vehicle, which could potentially raise your monthly premiums.

“These changes (whatever their cost to you) may change the value for which the car needs to be insured,” he said.

“The fair market or retail value of the car might not simply increase by the amount you paid for the modifications.”

Ultimately, LPG conversion kits broadly fall under the same category as most aftermarket vehicle parts, which can all affect your insurance plan if you fail to check with your provider.

“Even simple modifications like a high-performance exhaust system, custom spoilers or alloy wheels can make a car expensive or difficult to insure,” said North.

A more substantial modification, such as an LPG engine conversion, will obviously have a bigger impact than cosmetic items like a custom spoiler, so contact your insurance provider before taking the plunge.