UK drivers of Chinese-made hybrid and electric vehicles (EVs) are encountering significant difficulties in obtaining insurance, according to new research. Some insurers are declining to cover certain models, while others are charging premiums nearly double those for equivalent petrol cars from other countries.
Carwow, a car sales site, found that half of insurance quote requests for Chinese brands such as BYD, XPeng, Jaecoo, and Skywell were rejected. In a test involving five insurers and four models, Axa declined to quote on any, while Hastings Direct only offered cover for the BYD. Direct Line and Admiral each declined two vehicles, and only Aviva provided quotes for all four.
The cost of insuring Chinese cars also proved higher. The hybrid Jaecoo 7 averaged £1,103 per year, almost double the £577 for a comparable Skoda Karoq. The XPeng G6 cost £936, well above the £639 for a petrol Hyundai Kona. Even the BYD Seal U, at £876, was more expensive than the petrol Kia Sportage at £730.
Iain Reid of Carwow said limited options make it harder for drivers to shop around, potentially making some models impossible to insure. He attributed the issue to insurers still building repair data and parts supply chains for newer models. Stephen Kennedy of Defaqto noted that EVs are costlier to repair, and insurers lack sufficient data to price policies accurately.
Despite rising sales of Chinese brands in the UK—with registrations up significantly in April—insurers remain cautious. A Hastings Direct spokesperson said some newer brands have low volumes and developing parts supply chains. Axa cited insufficient data, while Aviva and Admiral said they review pricing as more information becomes available.
