- Britain’s best-selling new car in March is the one insurers least want to cover.
- The Jaecoo 7 costs nearly double a Skoda Karoq to insure across UK quotes.
- Chery says it’s working with insurers, but admits the risk model moves slowly.
British buyers are piling into the new wave of competitively priced Chinese models, often paying thousands less than they would for an equivalent legacy badge, only to discover that the cover costs make the math considerably less flattering. Sometimes the cover doesn’t even exist at all.
In April, BYD sold more EVs than any other manufacturer in the country. March belonged to Chery, whose popular Jaecoo 7, nicknamed the “Temu Range Rover” for an uncanny family likeness to the Solihull product and offered in both hybrid and petrol form, finished as the UK’s outright best-seller with 10,064 units.
Read: Britain’s Biggest EV Brand Isn’t Tesla, BMW Or Volkswagen
The catch turned up in a CarWow study, which found that many insurers are simply refusing to cover new Chinese models because they still need time to build up repair data, long-term claims histories, and established parts supply chains.
The outlet recently asked five insurers for separate quotes on Jaecoo 7, Xpeng G6, Skywell BE11, and BYD Seal U models for a 27-year-old male. One insurer, Axa, refused to offer coverage for any of these Chinese SUVs. Additionally, Hastings Direct was only willing to insure the BYD and Direct Line declined to cover two of them. The only insurer willing to cover all four vehicles was Aviva.
Not only can finding insurance be difficult, but even when buyers lock in a deal, they’ll be paying more. For example, the average cost of covering the Jaecoo 7 was £1,103 (equal to $1,500 at current exchange rates) a year, roughly double the £577 ($770) average for a Skoda Karoq. In addition, the Xpeng G6 cost £936 ($1,250) to insure, much more than the average of a rival like the Hyundai Kona at £639 ($850), The Guardian reports.
Chery Is Working On It
“It’s still harder to get insurance quotes for newer Chinese models than for more established European and Japanese alternatives,” Iain Reid from CarWow said. “On paper, Chinese cars come in at an average of £901 ($1,200) a year to insure – about £255 ($340) more than equivalent petrol models at £646 ($860). But the bigger issue isn’t just price; it’s availability.”
According to the head of product at the Chery-owned Omoda and Jaecoo brands in the UK, Oliver Lowe, the automaker is working with insurers to try and bring costs down.
“Anything that’s risk-based is slow to change and adapt to new challenges very quickly. That’s completely understandable. It’s risk for them. We have an expert team that are working on all fronts to reduce those insurance costs.”
