Hangzhou Tesla owners, planning post-holiday retirement, are preparing to purchase Teslas in response to recent premium hikes: an average jump of around 10%, with high-performance models seeing increases not exceeding 20%.
The Metropolitan Express recently reported on the introduction of specialized insurance for new energy vehicles, marking a new era in auto insurance. However, vehicle owners swiftly noticed premium increases across several models. Tesla, specifically, experienced significant price surges, with some models nearly doubling in cost.
Premium discussions remain a hot topic on new energy vehicle owner forums. Recently, however, a shift in conversation emerged: Tesla premiums have undergone a considerable reduction. This price fluctuation, potentially amounting to thousands of yuan, has prompted questions regarding policy cancellations and repurchases.
Yesterday, Hangzhou Tesla owner Mr. Wei informed the Express that he’d contacted Tesla’s insurance advisor and the People’s Insurance Company of China (PICC). Both confirmed the premium decrease and the possibility of policy cancellation for those who purchased at the higher rate.
Hangzhou Tesla Owners Prepare Post-Holiday Purchases
Mr. Wei, owner of a Tesla Model Y long-range version priced at 347,000 yuan, recounted his experience. On December 28, 2021, the official website displayed a premium of 7,000 yuan. However, his purchase that day resulted in a 13,400 yuan quote. The advisor explained the discrepancy, citing the insurance system’s pricing and providing a link confirming the higher figure. He was obliged to purchase at the increased price.
Following online discussions regarding Tesla’s price reduction, Mr. Wei inquired with his advisor, receiving confirmation of the decrease and the option of a refund and repurchase. The insurance company will aid in the cancellation process. However, due to year-end account closures before New Year’s Day, processing will commence post-holiday. PICC representatives requested banking details and identification documentation for processing.
Mr. Wei anticipates a small deduction—perhaps a couple hundred yuan—from the refund due to the holiday period. Nevertheless, he expects to recoup a portion of the overpayment. The new premium amount remains undetermined.
Express News also observed forum posts from vehicle owners who preferred online cancellation to in-person requests, a method accepted by the insurance company.
A spokesperson from a Hangzhou insurance company’s auto insurance division stated that if owners find their premiums exorbitant, they can consider cancellation and repurchase. However, they should anticipate variations in reinsurance premiums for previously insured vehicles.
It is advisable to compute the price difference beforehand, acknowledging potential absence of renewal discounts after cancellation.
Electric vehicle manufacturers react to escalating insurance costs
Concerning the recent considerable increase in insurance costs for several Tesla models, Tesla representatives provided a statement to reporters:
“Following the introduction of specialized electric vehicle insurance, we’ve fielded inquiries about fluctuating premiums. Vehicle insurance is vital for safeguarding the user experience. We closely monitor insurance price adjustments. Premium growth rates vary among insurers, regions, and models. Our December 30th, 2021 data shows a roughly 10% national average increase in Tesla insurance premiums. High-performance models show a national average increase under 20%. Consult your local insurer for precise figures. We thank you for your support.”
Industry experts attribute the increased cost of electric vehicle insurance to two primary factors: high maintenance expenses and elevated risk profiles. The December 27th, 2021 introduction of the “New Energy Vehicle Commercial Insurance Exclusive Clause (Trial)” expands coverage to better align with the specific needs and risks associated with electric vehicles. This may account for premium increases on certain models.
Besides Tesla, Xpeng Motors issued a statement regarding adjustments to its commercial auto insurance premiums for its electric vehicle lineup: “Based on insurer feedback from December 28th, 2021, the national average premium increase across all Xpeng models ranges from 2.9% to 18.2%, with minor variations dependent upon the insurer, region, and specific model. Check with your local insurer for detailed pricing.”
NIO confirmed that its 2021 user care packages, encompassing insurance and related services, maintain their original price despite the recent adjustments in auto insurance rates. Packages excluding insurance will undergo corresponding price revisions mirroring insurance company pricing.
