2024-03-11 19:31:11
As Chinese electric cars make their way into European markets, including Britain, they now face an unexpected obstacle. And with regards to insurance. Many UK insurers are reluctant to cover cars from Asia, with many new models struggling to insure or owners being forced to pay very high premiums. The main reasons for this problem lie in the fear of high repair costs, the lack of specific technical information about cars and the extended delivery times of spare parts.
Models such as the BYD Seal, GWM Ora 03 and some MG cars are recognized as particularly problematic for insurance. Industry research agency Thatcham Research, which is funded by the insurance sector, stresses that the problem stems from a lack of understanding of the repair process in Europe by Chinese manufacturers.
Ben Townsend of Thatcham Research points out that the problem is not the quality of the vehicles, but a lack of cooperation with the insurance industry. “We are calling on manufacturers from China, India and Vietnam not only to come with the intention of selling cars in the UK, but to talk to us and understand the specifics of the market to provide the right support and logistics for their products,” says Townsend.
Although the problem of increased insurance costs is not unique to Chinese electric cars, they are among the most affected. Recent reports show that electric car owners pay significantly more for insurance compared to internal combustion vehicles.