UK drivers struggle to get insurance for Chinese EVs such as Jaecoo

"UK insurers are more hesitant to cover some hybrid and electric vehicles (EVs) from China than cars from other countries, research suggests. While some drivers can save money by buying cars made in China, they may have more limited options to get insurance than those buying electric, hybrid and petrol cars from Europe, the US and South Korea. And when policies are available, they can sometimes cost almost twice as much as those for similar petrol vehicles from outside China."

"In its survey, half of the requests for quotes were declined. It took four models the hybrid Jaecoo 7, the XPeng G6, the BYD Seal U and the Skywell BE11 and asked five insurers for quotes for a 27-year-old man living in Hampshire. Axa declined to give quotes on any of the vehicles, while Hastings Direct only offered coverage on the BYD. Direct Line declined two vehicles and Admiral one, while only Aviva offered cover for all, according to Carwow."

"Only Admiral and Aviva would cover the XPeng G6, at an average cost of 936 a year higher than a petrol Hyundai Kona. Photograph: Jasper Jolly/The Guardian Iain Reid of Carwow says that more limited options for cover mean that drivers of Chinese cars have less ability to shop around and get more competitive quotes. For some motorists, this could make some models impossible to insure at all, he says."

"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 adds. The research suggests insuring some EV or hybrid cars will cost a lot more than a similar non-Chinese vehicle with a petrol engine."

UK insurers show greater reluctance to cover some Chinese hybrid and electric vehicles than vehicles from Europe, the US, and South Korea. Drivers who buy Chinese-made cars may face fewer insurance options and higher premiums compared with similar petrol vehicles from outside China. A Carwow survey found that half of quote requests for several Chinese models were declined by insurers. For a 27-year-old man in Hampshire, Axa declined all quotes, Hastings Direct offered coverage only for the BYD, and other insurers declined some models. Only Aviva offered cover for all tested vehicles. Insurers are still developing repair data, parts supply chains, and long-term claims histories for newer Chinese models, making providers cautious.

Read at www.theguardian.com