Sales of Chinese car brands are accelerating across the UK, but a new investigation by Carwow suggests that some buyers are being hit with unexpectedly high insurance premiums. British motorists are snapping up Chinese cars at an “astonishing rate”, attracted by low upfront prices and generous standard equipment. However, the report highlights that as demand grows, parts of the insurance industry are struggling to keep pace — and that is affecting premiums and availability of cover.
Eight-car insurance comparison
As part of its investigation, Carwow tested eight different models: four from Chinese brands and four from well-known European, Korean and Japanese manufacturers.
The models included:
- Jaecoo 7 (China)
- Xpeng G6 (China)
- BYD Seal U (China)
- Skywell BE11 (China)
- Volkswagen Tiguan (Germany)
- Kia EV3 (South Korea)
- Peugeot E-3008 (France)
- Toyota RAV4 (Japan)
Carwow found that the Skywell BE11 proved the most difficult to insure. Out of 10 insurers contacted, nine were unable to provide a quote. Some explicitly declined to cover the vehicle, while others did not have Skywell listed as a recognised brand in their systems.
The only insurer willing to provide cover for the BE11 — esure — quoted a premium of around £2,203 per year. According to Carwow, this was nearly £1,365 more than a direct alternative, the Peugeot E-3008, which had an average annual premium of around £838.
Why are premiums so high?
Carwow reports that concerns over parts availability and repair processes are contributing to insurer caution. With many of these brands still relatively new to the UK market, insurers may have limited historical data on repair times, supply chains and claims costs.
This can result in higher premiums or limited insurer choice, potentially offsetting the initial savings made when purchasing the vehicle.
As more of these cars enter the UK market, the insurance sector may need time to adjust its pricing models and repair networks to reflect real-world data.
DM News Commentary
We recently reviewed the new MG IM6 on the Driver Matty YouTube channel, and insurance quickly became a talking point in the comments. Several viewers said they had already checked quotes and were shocked to see premiums nearly double what they were currently paying.
That’s a serious consideration. A car might look like an outstanding value with strong specs and a competitive list price, but if insurance significantly increases monthly outgoings, it changes the overall affordability.
For everyday drivers — and especially for anyone running a vehicle for business — insurance is a key part of the total cost calculation. It’ll be interesting to see whether insurers adapt quickly as these brands grow in popularity across the UK.
Thanks for visiting DM News! If you’ve got a question, story, or anything you’d like to say, head over to DriverMatty.com — I’d love to hear from you! And while you’re there, don’t forget to check out my other websites and social media channels.
