Chinese car companies are still not insuring many top Chinese vehicles, with one reason behind the lack of policies, according to experts. Car insurance expert Gerry Bucke explained that concerns about replacing parts and a lack of familiarity with the products were behind customers’ difficulties getting on the road.
Car insurance firms rely on data to determine how much to charge customers for a policy. However, new Chinese competitors have yet to properly establish themselves, meaning information on repair costs and accidents has not yet filtered through.
Gerry, Adrian Flux’s general manager, explained: “There are insurers right now who won’t cover many models, or put big rates on them, because concerns around sourcing and replacing parts exist. The lack of familiarity with the brands means some won’t underwrite Chinese cars, and that can be frustrating for drivers. We’d urge people to be patient but, more importantly, shop around.”
Major car insurance brands have previously admitted to not insuring Chinese models at this stage. As part of an investigation by Carwow, insurance firm Ageas said many Chinese brands were new to the market, but were looking to add new models to our list of acceptable vehicles when appropriate.
In comparison, the new all-electric Chinese Skywell BE11 came in at a whopping £2,203 per year despite being on sale for two years. After struggling to get prices down, Skywell intervened, partnering with Adrian Flux to offer a dedicated insurance programme to get cars on the road. Meanwhile, they found that the VW Tiguan could be insured for a little under £700, while premiums for the new popular JACOO 7 came in at £858, £165 more per year.
Gerry added, “We don’t believe in one-size-fits-all policies, especially for emerging brands. This might be a new market, but it’s nothing new for us. There are lots of ways of bringing the cost of your cover down that you won’t always realise by pumping information into a comparison website.
“Speaking to someone to give the true story of you and your vehicle will help make the best savings so you can get around the sky-high premiums some drivers of Chinese cars are facing.”