- Several UK insurers are declining cover for newer Chinese EV and hybrid brands.
- Insurance premiums for some models are nearly double those of similar petrol cars.
- Insurers say limited repair data and weak parts supply chains are making them cautious.
Chinese electric vehicles are becoming harder to ignore on British roads. Brands such as BYD, XPeng, Omoda and Jaecoo are rapidly expanding across the UK market, helped by competitive pricing and growing consumer interest in electric and hybrid cars.
But for many buyers, the real surprise comes after the purchase — getting insurance.
Fresh research from car sales platform Carwow suggests several UK insurers remain reluctant to cover some newer Chinese-made EVs and hybrids, even as sales continue to climb. In some cases, insurers declined to offer quotes altogether. Where cover was available, premiums were often far higher than comparable petrol models from more established manufacturers.
The findings point to a growing problem in the UK electric vehicle market, where demand for cheaper EVs is rising faster than insurers appear willing to adapt.
Cheap to buy, expensive to insure
Carwow tested insurance quotes for four Chinese models — the hybrid Jaecoo 7, the XPeng G6, the BYD Seal U and the Skywell BE11 — using a profile of a 27-year-old driver based in Hampshire.
The results showed insurers taking very different approaches.
According to the study, Axa declined to quote for all four vehicles. Hastings Direct only offered cover for the BYD Seal U. Direct Line reportedly refused two models, while Admiral declined one. Aviva was the only insurer willing to cover all four vehicles.
The cost differences were also notable.
Insurance for the Jaecoo 7 averaged £1,103 a year, compared with £577 for a petrol-powered Skoda Karoq, which Carwow used as a similar alternative. The XPeng G6 attracted an average premium of £936, significantly higher than the £639 quoted for a Hyundai Kona petrol model.
The BYD Seal U came in at around £876 annually, while a comparable Kia Sportage petrol vehicle averaged roughly £730. Aviva was reportedly the only insurer willing to cover the Skywell BE11, with a premium of £685, slightly above the £638 average for a Ford Kuga petrol equivalent.
Carwow’s editorial director Iain Reid reportedly said insurers are still trying to understand the long-term risks linked to newer Chinese brands. He said limited repair histories, uncertain parts availability and a lack of claims data were making some insurers cautious.
That, he reportedly added, leaves drivers with fewer options to compare prices and could make certain models difficult to insure at all.
Insurers still unsure about repair risks
The issue appears to go beyond Chinese manufacturers alone. Insurance costs for electric vehicles have generally risen in recent years, partly because EVs can be more expensive to repair after accidents.
Stephen Kennedy of financial data company Defaqto reportedly said insurers rely heavily on claims history to calculate risk accurately. Without enough data, pricing becomes harder.
“It’s a bit of a chicken and egg situation,” he reportedly said in a news report, explaining that insurers cannot build reliable pricing models until more policies exist for those vehicles.
Several insurers defended their approach, arguing that newer manufacturers are still establishing repair networks and supply chains in Britain.
A spokesperson for Hastings Direct reportedly said the company considers repair complexity, safety and vehicle demand when offering policies. The spokesperson added that some Chinese brands are still relatively low-volume in the UK market and parts supply systems are continuing to develop.
Axa reportedly said some brands remain too new for the company to assess properly due to limited available data.
Meanwhile, Admiral said it has not increased EV insurance costs disproportionately compared with petrol vehicles and continues to provide competitively priced cover where possible.
The wider backdrop, however, suggests Chinese carmakers are unlikely to disappear from the UK market anytime soon.
Data from the Society of Motor Manufacturers and Traders showed strong growth in registrations for Chinese brands during April. The Jaecoo 7 even emerged as the UK’s bestselling new car in March, helped by aggressive pricing and growing demand for hybrid SUVs.
Manufacturers insist insurance concerns should ease over time as their vehicles become more common. Oliver Lowe, head of product at Omoda and Jaecoo UK, reportedly said the company is working closely with insurers to reduce costs and improve confidence around repairs and claims handling.
He reportedly compared the current situation to the early arrival of Japanese and South Korean carmakers in Britain, when insurers initially showed similar hesitation before those brands became mainstream.
