High premiums and renewal difficulties: How to solve the insurance dilemma for new energy ride-hailing vehicles?

(Source: Workers’ Daily)

In recent years, the number of new energy ride-hailing vehicles has grown rapidly. The Ministry of Industry and Information Technology, the Ministry of Transport, and six other departments previously issued the “Notice on Organizing Pilot Work for Full Electrification of Vehicles in the Public Sector,” which clearly requires that in pilot areas, new energy vehicles account for 80% of newly added city taxis (including traditional taxis and online ride-hailing vehicles).

However, as the industry accelerates its transition to new energy vehicles, it has encountered insurance challenges. Many ride-hailing drivers report that current new energy ride-hailing vehicles not only have premiums several times higher than similar private cars and gasoline vehicles, but also face frequent “renewal difficulties,” with some saying, “Last year I could insure, but this year I can’t renew.” Why are premiums for new energy ride-hailing vehicles so high? Why is renewal so difficult? How can these problems be solved? Our reporter conducted interviews.

High premiums and renewal difficulties lead some drivers to choose “risk self-insurance”

“A car bought for just over 100,000 yuan costs about 15,000 yuan in insurance,” said Chongqing ride-hailing driver Mr. Chi. She chose to buy an electric vehicle to save operating costs, but when the insurance quote came in, she realized, “Operating costs aren’t really cheaper than gasoline cars.”

Chi’s experience is not unique. The reporter learned from several insurance companies that the comprehensive insurance premiums for new energy ride-hailing vehicles generally range from 5,000 to 20,000 yuan, which is 20% to 30% higher than gasoline ride-hailing vehicles of the same class, and 1 to 2 times higher than private cars of the same model. A manager from a Beijing ride-hailing company revealed that the company has more than ten new energy ride-hailing vehicles, with an average annual premium of 13,000 yuan per vehicle, totaling nearly 200,000 yuan in insurance costs per year.

Under the pressure of high premiums, some drivers opt for “risk self-insurance”: they purchase only partial coverage instead of full insurance. Zhao, a ride-hailing driver in Zhengzhou, drives a “gas-to-electric” converted vehicle, with a full insurance premium of 8,000 yuan. “I only paid 5,000 yuan, insuring mandatory liability and third-party liability. If I am fully responsible for an accident, I have to pay for repairs myself.”

In addition to high premiums, renewal difficulties are another major concern for drivers. “Our company adopts a phased insurance strategy—sometimes we open a few spots for ride-hailing vehicles to insure, but the next month we stop accepting new policies. Cases like ‘could insure last year, can’t renew this year’ are quite common in the industry,” said an insurance manager.

High accident and claim rates push up premium pricing

Why do high premiums and insurance difficulties persist despite new energy ride-hailing vehicles becoming the main vehicle type in the industry? Experts and insiders say this is related to the high accident and repair costs of new energy vehicles.

Statistics show that the accident rate for new energy vehicles is about 35%, which is 20% higher than that of gasoline vehicles. The accident frequency for ride-hailing vehicles is even higher than private cars, with a combined claim rate of 130% to 140%.

The high repair costs of new energy vehicles are also a key factor. Wang Guojun, a professor at the Insurance School of the University of International Business and Economics, explained that for pure electric vehicles, the battery accounts for about 40% of the total vehicle cost. After an accident, batteries are very prone to thermal runaway, and single claim amounts can even reach twice that of gasoline cars. “With both accident and claim rates high, insurance companies can only offset the risks through higher pricing,” Wang said.

The nature of commercial vehicles combined with the characteristics of new energy models makes ride-hailing vehicles a “high risk within high risk.” “The more coverage you get, the more you stand to lose,” Wang analyzed, pointing out that this also reflects systemic issues in the industry’s risk-bearing capacity: the development of insurance for new energy ride-hailing vehicles is relatively recent, with insufficient data and imprecise pricing models, and weak actuarial foundations that can lead to mispricing.

“Insurance companies’ lack of data sharing with vehicle manufacturers and platforms also results in incomplete risk assessment,” Wang added. They find it difficult to access real-time data such as ride volumes and routes from ride-hailing platforms, relying only on static indicators like vehicle age and accident history, which makes comprehensive risk evaluation challenging.

Seeking solutions for the risk scenarios of new energy ride-hailing vehicles

“Breaking through the insurance difficulties for new energy ride-hailing vehicles requires technological innovation,” Wang suggested. Using big data technology, integrating vehicle CAN (Controller Area Network) bus data, ride-hailing platform order data, and traffic violation records, can help build a three-dimensional risk profile for vehicles, enabling insurance companies to more accurately assess the risks of new energy ride-hailing vehicles.

“Regarding pricing mechanisms, existing UBI (Usage-Based Insurance) technology can already collect data such as braking frequency and nighttime driving ratio through onboard devices, allowing for personalized insurance rate adjustments,” Wang said. He emphasized that further promotion of these insurance technologies’ application is necessary. Especially for new energy ride-hailing vehicles, establishing reinsurance funds for commercial vehicles and enacting regulations for data sharing on insurance platforms are crucial.

“As the ride-hailing market expands, the insurance industry should develop specialized product systems and service standards tailored for this group, providing ride-hailing drivers with customized insurance services,” Wang recommended. For example, in risk scenarios specific to new energy ride-hailing vehicles, battery protection insurance could include coverage for punctures and water immersion. Premiums could adopt a “basic premium + variable premium” model, dynamically adjusting based on mileage and number of trips.

“Adding special clauses for ‘new energy commercial vehicle insurance’ within the current legal framework is not only necessary but urgent,” said Lu Fenghao, a practicing lawyer at Henan Shiding Law Firm. Relevant authorities should actively promote revisions to insurance laws and related regulations, develop specific insurance management measures for ride-hailing risks, and standardize insurance contract terms.