High insurance costs are deterring price-conscious customers from purchasing Chinese electric vehicles (EVs) in Europe due to factors such as a lack of replacement parts and poor cooperation between insurance firms and Chinese manufacturers.
High Insurance Costs Deter Price-Conscious Buyers of Chinese EVs in Europe
Chinese electric vehicles (EVs) have gained traction in Europe for their competitive pricing, value, and surprisingly good quality. However, high insurance costs are deterring some price-conscious customers from purchasing these vehicles.
( Credit to: Insideevs )
Insurance companies in the UK are facing challenges when it comes to insuring new Chinese vehicles. Factors such as a lack of replacement parts, poor cooperation between insurance firms and Chinese manufacturers, and a lack of technical knowledge contribute to the high insurance rates for UK drivers.
One of the main factors driving up insurance costs for EVs is the expense of repairing them. The average insurance claim for an EV is approximately 25% more expensive than a comparable gas-powered car. Additionally, some EV startups struggle to meet the demand for replacement parts and provide accurate repair instructions.
Chinese automaker BYD has also faced complaints in the UK. Body shops struggle to repair BYD vehicles due to a lack of understanding about the European repair market and a failure to provide necessary parts and information. This has resulted in long repair times and, in some cases, total write-offs of Chinese cars.
These issues are not limited to Chinese brands. Tesla and other EV manufacturers have also faced similar challenges. The high cost of batteries, which are often unfixable when damaged in an accident, contributes to the increased likelihood of total write-offs. Additionally, the high-voltage nature of electric vehicles requires technicians with specialized training, making their services more expensive.
Chinese automakers are actively working to rectify these problems and improve their understanding of the European market. With time, it is hoped that insurance prices will become more reasonable for Chinese EV models.
