British drivers buying Chinese-made electric and hybrid vehicles are increasingly struggling to secure affordable insurance, as major insurers remain cautious about covering newer brands entering the UK market.
Research suggests motorists purchasing Chinese vehicles such as models from BYD, XPeng, Jaecoo and Skywell are facing higher premiums and fewer insurance options compared with drivers choosing more established European, Japanese or South Korean brands.
The issue is emerging at a time when Chinese electric vehicle manufacturers are rapidly expanding their presence in Britain, driven by competitive pricing, growing demand for EVs and pressure on consumers searching for cheaper alternatives during the cost-of-living crisis.
However, industry experts warn that insurance difficulties could become a major obstacle to the wider adoption of Chinese vehicles in the UK.
Chinese EV Brands Gain Ground in Britain
Chinese automotive brands have become increasingly visible on British roads over the past two years as manufacturers push aggressively into the European market.
Vehicles such as the Jaecoo 7, often described online as the “Temu Range Rover” because of its luxury-inspired styling and lower price, have seen rapid growth in popularity.
In March this year, the Jaecoo 7 became Britain’s bestselling new car, highlighting the speed at which Chinese brands are entering the mainstream UK market.
At the same time, registrations of Chinese electric and hybrid vehicles have risen sharply, according to figures from the Society of Motor Manufacturers and Traders.
Many drivers are attracted by lower purchase prices, advanced technology packages and long electric driving ranges compared with traditional Western rivals.
But while buying costs may appear attractive, some motorists are discovering that insurance availability and pricing remain major concerns.
Half of Insurance Quote Requests Rejected
Research conducted by Carwow found that insurers were significantly more hesitant to provide cover for several Chinese-made EVs and hybrid vehicles.
The study examined insurance quotes for four Chinese models: the hybrid Jaecoo 7, the XPeng G6, the BYD Seal U and the Skywell BE11.
Five major insurers were asked to provide quotes for a 27-year-old driver living in Hampshire.
The findings showed that half of all quote requests were rejected outright.
Axa declined to quote for any of the vehicles included in the research, while Hastings Direct only offered insurance for the BYD model.
Direct Line declined two vehicles, while Admiral refused cover for one model.
Only Aviva offered insurance quotes for all four vehicles.
Industry analysts say limited insurance competition makes it harder for consumers to shop around for lower prices.
Insurance Costs Far Higher Than Petrol Rivals
The research also revealed major price differences between Chinese EVs and comparable petrol-powered vehicles.
The average annual insurance premium for the Jaecoo 7 reached £1,103 — nearly double the £577 average cost for a petrol-powered Skoda Karoq, which Carwow identified as a similar SUV alternative.
Insurance for the XPeng G6 averaged £936 annually, compared with £639 for a petrol Hyundai Kona.
Meanwhile, the Skywell BE11 could only secure cover through Aviva, costing £685 annually, slightly above the £638 premium for a petrol-powered Ford Kuga.
The BYD Seal U also attracted higher costs, averaging £876 annually compared with £730 for a petrol Kia Sportage.
Experts say these price gaps reflect both the broader challenges surrounding EV insurance and the additional uncertainty insurers face with newer Chinese brands.
Why Insurers Are Hesitant
Insurance specialists say one of the biggest problems is the lack of long-term claims and repair data for many Chinese vehicles.
Stephen Kennedy from financial information service Defaqto said insurers are still trying to understand the repair costs, reliability and accident risks associated with newer EV models.
“It’s a bit of a chicken-and-egg situation,” Kennedy explained. “If insurers haven’t sold policies for these types of vehicles, they don’t have the data needed to accurately assess pricing.”
Repair costs for electric vehicles are already generally higher than for petrol cars because of expensive battery systems, specialist labour requirements and complex technology.
Insurers also worry about parts availability and supply chains for relatively new brands entering the UK market.
Industry figures say some Chinese manufacturers still have limited repair infrastructure and smaller spare-parts networks across Britain.
A spokesperson for Hastings Direct said insurers assess how easy a vehicle is to repair, how safe it is and how strong parts supply chains are before determining coverage.
EV Insurance Problems Growing Across Britain
The issue comes amid broader concerns over rising insurance premiums for electric vehicles across the UK.
Many insurers have raised EV premiums over the past two years because of increasing repair bills, battery replacement costs and shortages of qualified repair technicians.
The Association of British Insurers said companies face greater difficulty evaluating risk when there is little historical claims data available.
At the same time, the rapid growth of Chinese EV brands has created additional uncertainty in the market.
Despite these challenges, car sales in Britain continue rising, particularly in the EV sector.
Government policies encouraging lower-emission transport, combined with expanding charging infrastructure, have accelerated the transition away from petrol and diesel vehicles.
Chinese manufacturers have become major beneficiaries of that shift.
Manufacturers Say Situation Will Improve
Chinese carmakers insist the insurance situation will improve as their brands become more established in Britain.
Oliver Lowe, head of product at Omoda and Jaecoo UK, said the company is working closely with insurers to improve pricing and confidence.
“Anything that’s risk-based is slow to change and adapt to new challenges very quickly,” Lowe said.
He added that insurers are still gathering repair data and developing supply chains for many newer models.
Lowe compared the situation to the early arrival of Japanese and South Korean brands in the UK decades ago, when insurers initially showed similar caution before eventually adapting.
Industry experts expect insurance availability to improve gradually as more Chinese vehicles enter the market and insurers gain additional claims data.
However, for many British drivers buying Chinese EVs today, the challenge remains immediate.
Carwow’s Iain Reid warned that while purchase prices may appear attractive, insurance availability could become a deciding factor for many consumers.
“For some motorists, this could make some models impossible to insure at all,” he said.