UK insurers are increasingly reluctant to cover Chinese-made hybrid and electric vehicles (EVs), with some models proving nearly impossible to insure, according to research by car sales site Carwow. The study found that half of insurance quote requests for Chinese cars were declined, and when cover was available, premiums were often nearly double those for equivalent petrol vehicles from other countries.
Carwow tested four Chinese models—the hybrid Jaecoo 7, XPeng G6, BYD Seal U, and Skywell BE11—by seeking quotes from five major insurers for a 27-year-old male driver in Hampshire. Axa declined to quote on any of the vehicles, while Hastings Direct only offered cover for the BYD. Direct Line declined two models, Admiral one, and only Aviva provided quotes for all four.
The average annual insurance cost for the Jaecoo 7 was £1,103, almost double the £577 for a petrol Skoda Karoq. The XPeng G6 averaged £936, compared with £639 for a petrol Hyundai Kona. The Skywell BE11 cost £685 to insure, versus £638 for a petrol Ford Kuga, and the BYD Seal U cost £876, compared with £730 for a petrol Kia Sportage.
Iain Reid of Carwow said limited options reduce drivers' ability to shop around for competitive quotes, potentially making some models uninsurable. “Insurers are still building up repair data, parts supply chains and long-term claims histories for many of these newer models, which is making some providers cautious,” he added.
Stephen Kennedy of Defaqto noted that EVs are generally more expensive to repair after crashes, and insurers may lack sufficient data on new Chinese vehicles to price policies accurately. “It’s a bit of a chicken and egg situation,” he said. Insurers including Axa and Hastings Direct confirmed they are still assessing data on newer Chinese brands, which remain low-volume in the UK with developing parts supply chains.
