A yr after its extremely anticipated launch, the Xiaomi SU7 is once more within the highlight, as the primary wave of householders method their automobile insurance coverage renewal dates. In keeping with stories from Chinese language media outlet Cailian Press, a number of preliminary Xiaomi SU7 consumers have taken to social media to share their experiences, with some dealing with unexpectedly excessive renewal premiums and others encountering resistance from insurance coverage firms.
One proprietor in Wenzhou shared on social media that no insurance coverage firms had proactively contacted them for renewal. Upon contacting them, an insurance coverage agent even allegedly deleted them as a contact. This proprietor said that they had been suggested to resume by means of official Xiaomi channels after contacting Xiaomi customer support. Nevertheless, having made a declare up to now yr, the proprietor acquired quotes exceeding 10,000 yuan (1,400 USD) by means of the official app and different insurance coverage firms.
The investigation revealed that whereas many Xiaomi SU7 homeowners reported renewal prices starting from 4,000 to 7,000 yuan (420 to 980 USD) – typically a lower from their preliminary premium – some confronted related points to the Wenzhou proprietor. A automobile proprietor in Suzhou shared an insurance coverage invoice totaling 10,240 yuan (1,430 USD), which included complete protection with a excessive third-party legal responsibility restrict and protection for occupants.
Xiaomi Auto’s customer support clarified that homeowners can select insurance coverage companies from 4 accomplice firms (Folks’s Insurance coverage Firm of China, Ping An Insurance coverage, China Pacific Insurance coverage, and Sunshine Insurance coverage) by means of the official Xiaomi Auto app. Choosing this route additionally permits prospects to buy a “Xiaomi Fear-Free Service Bundle” for 1,299 yuan (182 USD), providing advantages like car pick-up and supply for upkeep and free important upkeep. Nevertheless, this service package deal is unavailable if homeowners select different insurance coverage suppliers independently.
Whereas Xiaomi insists that prospects should not obligated to make use of the official channels, some homeowners really feel this setup limits their choices.
Based mostly on present observations, an insurance coverage skilled commented that insurers should not giving Xiaomi SU7 any particular “particular consideration.” They defined that automobile insurance coverage pricing fashions are complicated and may fluctuate considerably. Premiums for brand spanking new power autos are typically greater because of a perceived greater danger and declare charge, making some insurance coverage brokers much less prepared to underwrite their insurance policies.
The upper insurance coverage value for brand spanking new power autos is a acknowledged challenge within the trade. Information from the China Banking and Insurance coverage Info Expertise Administration Co. confirmed that in 2023, the typical premium for NEVs was about 21% greater than for gasoline vehicles. Particularly, the typical annual premium for pure electrical autos was 1,687 yuan (233 USD) greater than for gasoline vehicles, roughly 1.8 instances the latter’s annual premium. In 2024, the Chinese language insurance coverage trade underwrote 31.05 million NEVs, producing 140.9 billion yuan (20 billion USD) in premiums however incurring an underwriting lack of 5.7 billion yuan(786 million USD), marking a steady pattern of losses.
Specialists from the Actuarial Institute of China and China Banking and Insurance coverage Info Expertise Administration Co. have famous that the upper insurance coverage prices for NEVs are because of greater restore prices, greater declare charges, and mismatches between insurance coverage pricing and car utilization or danger profiles.
Authorities are taking steps to deal with these challenges. Earlier this yr, 4 departments, together with the Monetary Regulatory Administration, collectively issued tips to advertise the high-quality improvement of NEV insurance coverage, aiming to fairly cut back upkeep and utilization prices and optimize insurance coverage provide. The “Automotive Insurance coverage Straightforward to Insure” platform has additionally been launched to assist NEV homeowners join with insurers and stop unjustified protection refusals.
Regardless of these insurance-related challenges some early homeowners confronted, Xiaomi Auto introduced spectacular gross sales figures as we speak. For March, the corporate delivered over 29,000 Xiaomi models.
Xiaomi Auto said, “Our manufacturing capability is ramping up easily, and we’re assured in attaining our annual supply goal of 350,000 models. We thank everybody for his or her assist and belief.”
This follows a robust efficiency in February, the place Xiaomi SU7 deliveries exceeded 20,000 models, marking the sixth consecutive month with deliveries surpassing this milestone. Deliveries of the Xiaomi SU7 Extremely started throughout the nation on March 2nd.
