British drivers who own Chinese-made cars may face significant challenges when trying to insure their vehicles, according to a new survey. While brands like Jaecoo, BYD, Omodo, and MG have surged in popularity in the UK due to their affordability and range, insurers remain hesitant to cover them.
Insurance Quotes Denied for Half of Chinese Car Buyers
Carwow, a car sales website, conducted a survey testing five insurers with four popular Chinese models: the Skywell BE11, BYD Seal U, hybrid Jaecoo 7, and XPeng G6. They sought quotes for a 27-year-old man based in Hampshire. Only Aviva offered coverage for all four cars. Hastings covered only the BYD, while Axa refused all, Direct Line declined two, and Admiral declined one.
Ian Reid of Carwow warned that this could be a major barrier for potential buyers. “For some motorists, this could make some models impossible to insure at all,” he said.
Why Are Chinese Cars Hard to Insure?
Experts suggest that electric vehicles (EVs), which many Chinese cars are, tend to be more expensive to insure due to higher repair costs after accidents. Stephen Kennedy of Defaqto explained, “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.”
Affordability Driving EV Uptake
Despite insurance issues, Chinese cars have boosted UK EV adoption, with recent data from the Society of Motor Manufacturers and Traders (SMMT) showing two million electric car registrations. However, SMMT Chief Executive Mike Hawes noted that natural demand still lags behind the Labour government’s ZEV Mandate targets. “Two million electric car registrations is a considerable milestone to celebrate, although natural demand is still well below the level demanded by the mandate,” he said.
