Xiaomi’s first electric vehicle (EV), the SU7, continues to make headlines, but not all news is positive. As early owners renew their car insurance, many are facing unexpectedly high premiums. This has raised concerns among buyers, even as Xiaomi Auto enjoys strong sales.
Rising Insurance Costs for Xiaomi SU7
Chinese media reports indicate that some Xiaomi SU7 owners have received insurance renewal quotes exceeding $1,400 USD. One customer even reported being ignored by their insurance agent after inquiring about coverage.
While some owners have received more reasonable quotes between $420 and $980 USD, the inconsistencies highlight issues with insuring this new EV model.
To help customers, Xiaomi Auto provides insurance through its app, working with major insurance companies. The company also offers a “Worry-Free Service Package” with added benefits, but this option is only available through Xiaomi’s official channels, limiting customer choice.
Why Are NEV Insurance Premiums Higher?
Industry experts explain that insurance costs for new energy vehicles (NEVs) like the Xiaomi SU7 are generally higher than traditional gasoline cars. Data shows that, on average, NEV insurance premiums are 21% more expensive. The Chinese insurance sector has also reported financial losses on NEV policies, making companies hesitant to offer lower prices.
Several factors contribute to high insurance costs for EVs:
Expensive Repairs: EVs often require costly repairs, especially for battery-related issues.
Frequent Claims: Insurance companies report that NEV owners file more claims than gasoline car owners.
Risk Assessment Issues: Traditional insurance pricing models do not always align with the unique risks of EVs.
To address these concerns, Chinese authorities are introducing new insurance guidelines. Additionally, the “Car Insurance Easy to Insure” platform aims to connect NEV owners with insurers to prevent unfair coverage denials.
Strong Sales Despite Insurance Woes
Despite these challenges, Xiaomi Auto continues to see strong demand for the SU7. In March, the company delivered over 29,000 units and reaffirmed its goal of selling 350,000 units in 2025. February also saw impressive numbers, with more than 20,000 units delivered for the sixth straight month.
Xiaomi Auto remains confident about its future. “Our production capacity is increasing smoothly, and we are committed to reaching our annual delivery target,” the company stated. While high insurance costs are a concern, Xiaomi’s sales momentum and customer-focused approach suggest a bright future for the SU7 in the growing EV market.