UK drivers are facing significant challenges in securing insurance for certain car brands, particularly Chinese electric vehicles (EVs), according to recent warnings from motoring experts. Four Chinese brands — BYD, XPeng, Skywell, and Jaecoo — have become increasingly common on UK roads, but obtaining insurance quotes for them remains problematic.
Insurance Quote Rejection Rates
Data from Carwow reveals that half of all insurance quote requests for these Chinese models were declined. The study tested four specific models: the hybrid Jaecoo 7, the XPeng G6, the BYD Seal U, and the Skywell BE11. Five major insurers were approached for quotes. Axa declined all, Hastings Direct only offered coverage on the BYD, Direct Line declined two vehicles, and Admiral declined one.
Expert Insights
Iain Reid of Carwow commented: "For some motorists, this could make some models impossible to insure at all." He added: "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."
Stephen Kennedy from financial information service 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."
According to Mr. Reid, "It's still harder to get insurance quotes for newer Chinese models than for more established European and Japanese alternatives." He noted that on paper, Chinese cars cost an average of £901 per year to insure, which is about £255 more than equivalent petrol models at £646. However, he stressed: "The bigger issue isn't just price; it's availability."
Industry Response
Oliver Lowe, head of product at Omoda and Jaecoo UK, acknowledged the issue: "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 added: "We saw similar concerns when Japanese and [South] Korean brands first arrived in the UK market, and insurance availability and pricing should improve as Chinese manufacturers become more established on British roads."
