Electric cars from China are encountering reluctance from insurance companies in the United Kingdom, with many new models being nearly uninsurable, while others come with exorbitantly high premiums.

According to a report by Carscoops on Saturday (March 9th), this phenomenon is primarily driven by concerns over high repair costs, lack of technical information, and long waiting times for spare parts availability.

Cars identified as particularly challenging to insure include the BYD Seal, GWM Ora 03, and even some MG (Morris Garage) models. Thatcham Research, a risk intelligence company funded by the UK insurance industry, attributes the concerns to the Chinese automakers' lack of understanding of the repair process in Europe.

The reluctance of insurance companies to provide coverage for these Chinese electric vehicles highlights the challenges associated with the increasing globalization of the automotive industry. As more manufacturers from China and other countries enter the European market, ensuring that vehicles meet safety standards and repairability requirements becomes paramount.

    Chinese Electric Vehicle Makers to Engage with Insurers

    Electric Cars from China Face Insurance Hurdles in the UK

    Ben Townsend, the Head of Thatcham Research, has swiftly responded to concerns regarding the insurability of Chinese electric vehicles in the UK, asserting that there is nothing inherently wrong with these vehicles. Instead, he suggests that the new entrants in the electric vehicle market have not adequately engaged with the insurance industry.

    "My message to Chinese companies is don't just bring your cars to the UK market and think you can sell them, come and talk to us, understand the market, understand the steps that need to be taken, we have an independent repair network that can support your vehicles and make them sustainable in the market, lowering the total cost of ownership and ensuring consumers get the worthy choices they deserve," he stated.

    Townsend's remarks highlight the importance of collaboration between automakers and insurers to address the challenges associated with insuring Chinese electric vehicles in the UK. By engaging with insurers and understanding the market dynamics, automakers can ensure that their vehicles meet the necessary standards for insurability and repairability.

    Rising Insurance Costs for Electric Vehicles Hit UK Market Beyond Chinese Models

    The escalating insurance costs in the UK aren't solely affecting Chinese electric vehicles. A recent report earlier this year revealed that electric vehicle users are paying nearly twice the premiums compared to those driving petrol or diesel vehicles.

    Furthermore, a separate report focusing on the UK electric vehicle insurance market highlights the surge in costs borne by Tesla owners. Simultaneously, one insurance provider has opted not to renew coverage for the Smart EQ ForFour.

    The disparity in insurance premiums between electric and conventional vehicles underscores the challenges faced by the electric vehicle market in the UK. While electric vehicles are hailed for their environmental benefits and lower operating costs, higher insurance premiums present a significant barrier to adoption for many consumers.

    Factors contributing to the higher insurance costs for electric vehicles include higher repair costs due to specialized components, limited availability of spare parts, and uncertainties surrounding the long-term reliability of electric vehicle technology. These factors not only impact Chinese electric vehicles but also affect other electric vehicle manufacturers operating in the UK market.

    The decision by some insurance providers to discontinue coverage for certain electric vehicle models, such as the Smart EQ ForFour, further exacerbates the challenges faced by electric vehicle owners in the UK. As the electric vehicle market continues to grow, addressing these issues will be crucial to ensuring the widespread adoption of electric vehicles and promoting sustainable transportation solutions.

    Insurance Companies Scrutinize Western Manufacturers Over Small Battery Issues

    A recent report sheds light on how insurance companies are excluding cars from Western manufacturers due to small battery issues. Vehicles that rely on batteries as structural elements are more susceptible to being excluded by insurance companies.

    However, Martyn Rowley, the Executive Director of the National Body Repair Association in the UK, highlights concerns regarding Chinese manufacturers and the lack of spare parts availability, citing the GWM ORA 03 (previously known as the Funky Cat) as an example.

    "We've had repair shops removing the car for silly reasons, something that could easily be fixed through a workshop if it were a Ford or Vauxhall. Unfortunately, you can't get the parts; the parts aren't available for that vehicle, which I think is ridiculous considering this is a multimillion-pound business," Rowley stated.

    GWM ORA Responds to Insurance Challenges Faced by Owners

    A spokesperson for GWM ORA has confirmed awareness of some owners encountering difficulties in obtaining insurance coverage. They also stated that they have taken steps to rectify the situation, although the company claims that good spare parts availability is assured.

    GWM ORA suggests that the issue may, in fact, lie in unfamiliarity with the brand, with "third-party communication disruptions" exaggerating spare parts waiting times.

    This acknowledgment from GWM ORA highlights their commitment to addressing concerns raised by owners regarding insurance coverage and spare parts availability. By acknowledging the challenges and taking steps to improve communication and accessibility, GWM ORA aims to enhance the ownership experience for its customers.

    Moving forward, it will be crucial for GWM ORA to continue working closely with insurance providers and third-party suppliers to ensure seamless access to insurance coverage and spare parts. By proactively addressing these issues, GWM ORA can build trust and confidence among owners and further establish itself as a reputable player in the electric vehicle market.

    Challenges in Repairability Hamper Chinese Electric Vehicles in the European Market

    In addition to insurance hurdles, there are other barriers to overcome for Chinese electric vehicles in the European market. In China's domestic market, manufacturer documentation on vehicle repair methods may not always be available. In other cases, there are discrepancies in repair qualifications. Despite significantly lower labor costs in China, major bodywork repairs may be perceived as straightforward tasks.

    In such cases, this information is relayed from China to workshops in Europe. However, due to higher labor costs in Europe, such repairs may not be financially viable.

    While there are clear discrepancies between the UK insurance industry and the expectations of Chinese car manufacturers, ultimately, the affected parties are consumers. Amidst potential tariff threats, this could become a significant factor in reducing the competitiveness of Chinese electric cars in the UK and European markets.


    Electric cars from China are encountering insurance obstacles in the UK, posing challenges for their market acceptance. Concerns over high repair costs, lack of technical information, and extended wait times for spare parts are among the primary reasons cited for the reluctance of insurance companies to cover these vehicles.

    Models such as the BYD Seal, GWM Ora 03, and select MG models are highlighted as particularly difficult to insure due to these issues. Thatcham Research, a risk intelligence company funded by the insurance industry, attributes these concerns to the Chinese manufacturers' limited understanding of repair processes in Europe.

    While efforts are being made to address these challenges, including improved communication and spare parts availability, the insurance landscape for Chinese electric cars in the UK remains uncertain. This presents a significant hurdle for manufacturers looking to expand their presence in the European market and underscores the importance of addressing these concerns to ensure the long-term viability of electric vehicles from China in the UK.