The pricing coefficient range for new energy vehicle insurance has undergone a new adjustment, expanding from [0.6, 1.4] to [0.55, 1.45]. This marks the second expansion since September 2025, bringing the industry closer to the ultimate target range of [0.5, 1.5].
The adjustment was completed around March 6. Industry experts indicate that the change will not significantly impact insurance premiums for most new energy vehicles. While some high-risk vehicles may experience price fluctuations, the majority of policyholders will see minimal changes in their premiums.
In recent years, new energy vehicle insurance has frequently been a topic of discussion. As a distinct category from traditional fuel-powered vehicles, new energy vehicles have made rapid progress in technological innovation and market penetration. However, they have encountered challenges in the more traditional insurance sector.
From an insurance perspective, new energy vehicles require not only adjustments to actuarial models but also a completely new risk-pricing logic. High battery costs, integrated body structures, and complex smart sensors mean that repair costs for these vehicles are significantly higher than for traditional cars. Minor scratches can lead to claims amounting to tens of thousands of dollars due to sensor damage. Additionally, the younger demographic of new energy vehicle owners and their higher frequency of use contribute to increased claim rates, which initially left insurers uncertain about pricing.
As data accumulates and risk models improve, insurers have refined their pricing strategies for new energy vehicle insurance. To better match risk levels with premiums and introduce greater price differentiation, a more flexible pricing range has become necessary. Adjusting the pricing coefficient range has thus become a focal point for the industry.
The auto insurance pricing coefficient allows insurers to adjust base premiums based on factors such as vehicle risk, usage patterns, and driver behavior. A wider coefficient range gives insurers more flexibility in pricing and helps ensure that premiums more accurately reflect individual risk levels, reducing cross-subsidization between low-risk and high-risk policyholders.
In 2020, a comprehensive reform in the auto insurance industry merged channel and underwriting coefficients into a single pricing coefficient. Since then, expanding the coefficient range has become a trend. In 2023, the coefficient range for fuel-powered vehicles was widened from [0.65, 1.35] to [0.5, 1.5] in one step, but new energy vehicles were not included in this adjustment.
In 2024, the National Financial Regulatory Administration’s property insurance department issued a draft notice proposing to adjust the pricing coefficient range for new energy commercial vehicle insurance from [0.65, 1.35] to [0.5, 1.5], though the policy has not yet been formally released.
In September 2025, the pricing coefficient range for new energy vehicle insurance was adjusted for the first time, expanding from [0.65, 1.35] to [0.6, 1.4].
The recent second adjustment further widened the range from [0.6, 1.4] to [0.55, 1.45].
An auto insurance business head at a major insurer stated that the adjustment is part of a planned effort to gradually align new energy vehicle pricing coefficients with those of fuel-powered vehicles.
For vehicle owners, changes in the pricing coefficient directly affect insurance premiums. Under the revised range, theoretical calculations show that premiums could decrease by up to 8% or increase by up to 3%, depending on risk factors. While many policyholders may benefit from lower premiums, high-risk vehicles could see their insurance costs rise.
According to industry insiders, most policyholders will not experience significant changes in their premiums. However, some high-risk vehicles may see an upward trend in pricing. Last year, the industry launched the "Easy Auto Insurance" platform to address challenges related to insuring high-risk commercial vehicles, which has already resolved many issues for new energy vehicle owners. As a result, the overall impact of this adjustment is expected to be limited.
Data shows that since its launch on January 25, 2025, the "Easy Auto Insurance" platform has connected 37 property insurance companies and facilitated insurance coverage for over 1.1 million vehicles, providing total coverage of 1.1 trillion yuan.
In October 2025, the platform also added an entry for fuel-powered commercial vehicles, aiming to resolve insurance difficulties for high-risk commercial vehicles.
It is important to note that challenges in new energy vehicle insurance extend beyond pricing coefficients. Issues such as claims handling, product design, technological advancements, and risk assessment also present systemic challenges. Additionally, the rapid iteration of new energy vehicles and the introduction of L3 conditional autonomous driving vehicles will continue to test the insurance industry.
During this year's National People's Congress, Zhou Yanfang, a deputy and director of China Pacific Insurance's Strategic Research Center, proposed measures to promote the high-quality development of new energy vehicle insurance. She emphasized that the diverse market structure and varied risk profiles of new energy vehicles require more refined product design and pricing mechanisms. She suggested accelerating the development of insurance products for emerging areas such as autonomous driving, battery-swapping technology, and vehicle-battery separation. She also recommended implementing risk-based supervision and exploring usage-based pricing models to better align coverage with risk levels.
