Zeekr, Jac, Deepal. You may think these names are foreign, but they’ll soon be sitting alongside Toyotas, Hyundais and Mazdas in traffic.

At least seven new Chinese car brands have been confirmed to launch in 2025 – or are already available – in Australia. Following the success of MG, GWM and BYD, the Chinese automotive industry has clearly seen an opportunity to offer more competitively priced, value-packed, and high-tech new cars Down Under – whether powered by petrol, diesel or electricity.

But what’s the catch?

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Why your insurance for a new Chinese EV car could cost more

Aside from the sharp price tags, big screens and fancy lights, they could be more costly to insure.

Insurers determine premiums based on a range of risk-based factors – and a car brand that has little claims history and an infant local supply chain of parts could drive up prices for owners looking to protect their brand-new car.

In the United Kingdom, we have already seen some underwriters refuse to cover certain Chinese-made models due to an alleged insufficient availability of parts, almost non-existent repair information, and a lack of knowledge of how the European repair market works.

The team at Compare the Market also previously found full electric vehicles – which are the main focus for the upcoming Chinese brands – generally carry a higher comprehensive car insurance premium.

The calculations from Toyota Corolla and BYD Atto 3 found the difference to be more than $563 per year.

How much more expensive can they be?

On average across 12 insurers studied, it’s anywhere between 7 per cent to 97 per cent more expensive to cover the top five best-selling full EV models compared to a similar petrol-powered model.

This is because the battery pack creates more complexity for repairers, many EV-specific parts need to be imported from overseas, and there’s a skills shortage with fewer qualified smash repairers for electric cars in Australia – which contributes to delays in repairs and inconvenience for owners.

And with the federal government’s New Vehicle Efficiency Standard (NEVS) due to go in effect next year, the supply and uptake of hybrid and electric vehicles will only continue to grow.

Is there a way to make my car insurance cheaper?

However, insuring an EV doesn’t need to be prohibitive.