Chinese electric cars cost up to 870 euros more to insure in full coverage

Premiums roughly double for Chinese EVs

Chinese electric cars are often cheaper to buy, but their full-coverage (Vollkasko) insurance is frequently much pricier. A Verivox analysis found that Chinese EVs cost almost twice as much to insure in full coverage as new cars from Europe, the United States, Japan and South Korea. Depending on the model, the annual premium runs up to 870 euros above that of a comparable car from Europe or the rest of Asia. Models from Nio, Leapmotor and MG are sometimes markedly more expensive than their established European counterparts. Full-coverage policies pay for damage to the insured vehicle on top of the statutory liability cover that every driver must hold.

A Berlin driver's example

Verivox calculated every case for a hypothetical 45-year-old driver from Berlin with a no-claims class of 15 who drives 12,000 km a year. The compared vehicles are similar in segment, body, horsepower, acceleration, top speed, range and weight. Drivers in their mid-forties pay less than very young or older drivers, because older drivers cause higher average damage than people in their mid-forties. Under those assumptions, a Nio EL6 costs 60% or 729 euros more to insure than a Tesla Model Y. A Leapmotor T03 is 33% or 199 euros more expensive than a comparable Fiat 500 Electric, and an MG4 Electric costs 12% or 93 euros more than a VW ID.3.

Nio EL6 vs Tesla Model Y729

Leapmotor T03 vs Fiat 500 Electric199

MG4 Electric vs VW ID.393

Nio EL6 vs Tesla Model Y

729 EUR

Leapmotor T03 vs Fiat 500 Electric

199 EUR

MG4 Electric vs VW ID.3

93 EUR

Data from the article text

Why insurers rate the models higher

Verivox attributes the gap mainly to the type classes (Typklassen) that insurers assign, not to any disadvantage for Chinese models as such. New models are placed in higher classes because insurers have to estimate damage risk and repair costs before they have claims data. Verivox managing director Aljoscha Ziller explained the logic:

“For new models, the damage risk and repair costs can often only be estimated, so they are placed in higher type classes as a precaution.”

Many Chinese manufacturers have only been on the German market for a few years, so insurers lack experience with the producers, spare-part costs and parts availability. Premiums therefore cannot be built on similar earlier model series, as they can for new models from established makers.

Classes expected to improve

Verivox says the classes are improving step by step. Its averages for 2027 place BYD at type class 27 and Skoda at 20, while Tesla sits at 26, Leapmotor at 24 and Fiat at 22.5. Nio, whose electric cars have been on the market longer but are rarely bought, is put at 29 on average.

BYD27

Skoda20

Nio29

Tesla26

Leapmotor24

Fiat22.5

BYD

27

Skoda

20

Nio

29

Tesla

26

Leapmotor

24

Fiat

22.5

Data from the article text

An earlier analysis by the Allianz Zentrum für Technik found that Chinese cars have improved by 1.5 type classes since 2024, while European manufacturers have worsened by 0.5 classes. Verivox adds that some individual Chinese models are already cheaper to insure than comparable models from established makers.