UK drivers are encountering significant difficulties when seeking insurance for Chinese hybrid and electric vehicles (EVs), according to new research. While these cars often offer cost savings upfront, insurance options are limited and premiums can be nearly double those for comparable petrol vehicles from other regions.
Insurance Challenges for Chinese Brands
Chinese automotive brands such as BYD, XPeng, and Jaecoo have become increasingly prevalent on UK roads. In March, the Jaecoo 7, nicknamed the “Temu Range Rover,” was the UK’s bestselling new car. However, a study by Carwow reveals that securing insurance for these vehicles can be problematic. Half of the insurance quote requests for Chinese models were declined.
The study examined four models: the hybrid Jaecoo 7, XPeng G6, BYD Seal U, and Skywell BE11. Five insurers were asked to provide quotes for a 27-year-old man living in Hampshire. Axa declined all vehicles, while Hastings Direct only covered the BYD. Direct Line declined two vehicles, Admiral declined one, and only Aviva offered coverage for all four models.
Higher Premiums Compared to Petrol Equivalents
The research indicates that insuring Chinese EVs often costs substantially more than insuring similar petrol-powered vehicles from established brands. The average annual premium for the Jaecoo 7 was £1,103, nearly double the £577 for a petrol Skoda Karoq. Only Admiral and Aviva would cover the XPeng G6, at an average cost of £936, compared to £639 for a petrol Hyundai Kona.
For the BYD Seal U, coverage averaged £876, versus £730 for a petrol Kia Sportage. Aviva was the sole insurer offering cover for the Skywell BE11 at £685, still higher than the £638 for a petrol Ford Kuga.
Reasons for Insurer Caution
Iain Reid of Carwow noted that limited insurance options reduce drivers’ ability to shop around for competitive quotes. “For some motorists, this could make some models impossible to insure at all,” he said. He added that insurers are still building repair data, parts supply chains, and claims histories for newer models, making them cautious.
Stephen Kennedy of Defaqto explained that EVs tend to be more expensive to repair after accidents, and insurers lack sufficient data on new vehicles to price policies accurately. “It’s a bit of a chicken and egg situation. If they haven’t sold policies for these types of vehicles, they don’t have the data to be able to work out how much they should be charging,” he said.
Industry Responses
A spokesperson for Hastings Direct stated that the insurer considers repair ease, safety, and demand when assessing quotes. While they cover some Chinese brands, “some newer brands are still relatively low‑volume in the UK, and their parts supply chains are still developing.” Axa, which provided no quotes in the study, said it lacks sufficient data to cover some new Chinese brands.
Aviva, which acquired Direct Line last year, reviews pricing as more data becomes available. Admiral noted that insurance prices have risen but said it has not increased EV premiums more than petrol car premiums. “We continue to try to provide accurately and competitively priced cover for EV drivers,” a representative said, adding that they do cover Skywell vehicles.
The Association of British Insurers commented that limited claims history makes it difficult for companies to evaluate risk. Oliver Lowe, head of product at Omoda and Jaecoo UK, said the company is working closely with insurers. “Anything that’s risk-based is slow to change and adapt to new challenges very quickly. That’s completely understandable. It’s risk for them. We have an expert team that are working on all fronts to reduce those insurance costs.”
He drew parallels to the arrival of Japanese and Korean brands in the UK market, suggesting that insurance availability and pricing should improve as Chinese manufacturers become more established.
