A year after its much-anticipated release, the Xiaomi SU7 is back in the spotlight as its first wave of owners faces challenges with car insurance renewals. Reports from the Chinese media outlet Cailian Press indicate that several initial SU7 buyers have shared their frustrations on social media, citing unexpectedly high renewal premiums and reluctance from insurers to offer coverage.
One owner from Wenzhou took to social media to describe the difficulties encountered when renewing their insurance. Despite reaching out to multiple insurers, none proactively contacted the owner for renewal. In fact, the insurance agent allegedly deleted their contact information after the inquiry. The owner eventually contacted Xiaomi’s customer service, which recommended renewing through official Xiaomi channels. However, the quotes received—both via the Xiaomi app and from other insurers—were above 10,000 yuan (approximately 1,400 USD), despite having filed a claim within the past year.
Other SU7 owners reported mixed experiences with their premiums. While some found their renewal costs reduced from their initial premiums—ranging from 4,000 to 7,000 yuan (420 to 980 USD)—others, like a car owner in Suzhou, faced unexpectedly high bills. In one case, the premium amounted to 10,240 yuan (1,430 USD), which included comprehensive coverage, a high third-party liability limit, and occupant protection.
Xiaomi Auto’s customer service clarified that owners can select insurance providers from four partner companies—People’s Insurance Company of China, Ping An Insurance, China Pacific Insurance, and Sunshine Insurance—through the official Xiaomi Auto app. Additionally, customers opting for this route can purchase the “Xiaomi Worry-Free Service Package” for 1,299 yuan (182 USD), which offers perks such as vehicle pick-up and delivery for maintenance, and free essential maintenance. However, this service package is unavailable if owners choose other insurers independently.
Although Xiaomi maintains that owners are not obliged to use official channels, some have expressed concerns that the setup limits their insurance options.
Industry experts suggest that insurers are not giving the Xiaomi SU7 any special treatment. A professional from the insurance sector explained that car insurance pricing is influenced by complex factors and can vary significantly. New energy vehicles (NEVs), like the Xiaomi SU7, generally face higher premiums due to perceived higher risks and claim rates, causing some insurers to hesitate in underwriting their policies.
The higher insurance costs for NEVs have long been a concern in the industry. According to data from the China Banking and Insurance Information Technology Management Co., the average premium for NEVs in 2023 was 21% higher than that for gasoline cars. Specifically, pure electric vehicles had an average annual premium 1,687 yuan (233 USD) higher than gasoline cars—nearly 1.8 times the latter’s annual premium. In 2024, the Chinese insurance industry underwrote 31.05 million NEVs, generating 140.9 billion yuan (20 billion USD) in premiums, but incurring a significant underwriting loss of 5.7 billion yuan (786 million USD), continuing a trend of losses.
Experts from the Actuarial Institute of China and China Banking and Insurance Information Technology Management Co. noted that the higher premiums for NEVs are driven by increased repair costs, higher claim rates, and mismatches between insurance pricing and the actual risks posed by the vehicles.
In response to these ongoing issues, authorities have taken action. Earlier this year, the Financial Regulatory Administration, along with three other government departments, issued guidelines to support the high-quality development of NEV insurance. These measures aim to reduce maintenance and usage costs while optimizing insurance offerings. Additionally, the “Car Insurance Easy to Insure” platform was launched to connect NEV owners with insurers and prevent unjustified coverage refusals.
Despite these insurance challenges, Xiaomi Auto remains optimistic about its future. The company recently reported strong sales figures, delivering over 29,000 units of its cars in March.
In a statement, Xiaomi Auto said, “Our production capacity is ramping up smoothly, and we are confident in achieving our annual delivery target of 350,000 units. We thank everyone for their continued support and trust.”
This follows a strong performance in February, when Xiaomi SU7 deliveries surpassed 20,000 units, marking the sixth consecutive month with deliveries above this milestone. Additionally, the delivery of the Xiaomi SU7 Ultra began across the country on March 2nd.
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