UK Insurer Unwilling To Insure Chinese EV

The UK car insurance industry is facing “challenges” in covering Chinese electric vehicles amid influx of the models into Europe. A dearth in replacement parts, poor cooperation between insurance firms and Chinese manufacturers and a lack of technical knowledge of the new vehicles, has bumped up the cost and time of repairs.

This has meant insurers are being forced to pass on extra costs to British drivers in the form of higher premiums if they opt for Chinese EVs. The primary issue is how difficult the cars are to repair in a timely manner, should anything go wrong. 

Replacement Parts - Whilst the quality of the cars themselves is excellent, the failure of manufacturers to provide a steady stream of replacement parts is effectively pricing out a huge portion of British motorists from owning a Chinese EV.

Even “standard repairs” for some Chinese models were “becoming impossible due to the scarcity of parts. The warnings come as Chinese electric cars flood into the European market, threatening European EV makers with cut throat prices and prompting the European Commission to moot imposing punitive new tariffs on imports.

Automakers such as Shenzhen-based BYD and GWM Ora have accelerated sales rapidly in Europe over the last year. In a report this month, UK drivers of the two manufacturer’s models were facing especially steep quotes for cover, due to the limited number of insurers willing to underwrite them. Premiums would be “sky-high… if insurers are willing to cover them at all.