# Your EV Insurance Premium Could Drop 8%? New Energy Vehicle Insurance Independent Pricing Coefficient Expands Further, Industry: Adjustments Completed in Early March

Everyday Economic News Reporter | Yuan Yuan Everyday Economic News Editor | Liao Dan

On March 19, “Daily Economic News” reporters learned from industry insiders that the autonomous pricing coefficient range for new energy vehicle insurance has been adjusted again, expanding from [0.6, 1.4] to [0.55, 1.45]. This is the second expansion since September 2025, and the final goal of [0.5, 1.5] is just one step away.

“Industry adjustments were completed around March 6,” an industry insider told “Daily Economic News.” They said that this adjustment will not significantly impact the premiums for new energy vehicle insurance, except for some high-risk vehicles where prices may fluctuate, most vehicle insurance premiums will not see major changes.

New Energy Vehicle Insurance Autonomous Pricing Coefficient Expanded Again

In recent years, topics related to new energy vehicle insurance have frequently sparked discussions. As a “new thing” different from traditional fuel vehicles, new energy cars have made great strides in technological innovation and market penetration, but in the more traditional insurance field, they face “growing pains.”

From an insurance perspective, new energy vehicles bring not only adjustments to actuarial models but also a completely new risk pricing logic. On one hand, their high-cost batteries, integrated body structures, and complex intelligent sensors make repair costs far higher than traditional fuel vehicles; minor scratches can escalate to claims worth tens of thousands of yuan due to sensor damage. On the other hand, features such as younger owners and higher travel frequency increase the risk of accidents, causing insurance companies to initially face “pricing confusion.”

However, with data accumulation and risk model improvements, insurance companies are increasingly refining their pricing for new energy vehicle insurance. To better match risk and enable differentiated pricing, more flexible pricing space is needed, making the adjustment of pricing coefficient ranges a key industry focus.

The so-called autonomous pricing coefficient for vehicle insurance is a factor that insurance companies adjust within a range based on the baseline premium, considering vehicle risk, usage nature, driver behavior, and other factors. The fluctuation range of this coefficient directly determines the pricing boundaries for insurers. The continuous expansion of this range often means insurers can gain more flexible pricing space, and it also means that consumers’ insurance prices will better match their risk levels, further reducing the subsidy of low-risk customers to high-risk customers.

In 2020, the vehicle insurance industry implemented comprehensive reforms, merging autonomous channel coefficients and autonomous underwriting coefficients into an autonomous pricing coefficient, with the trend of expanding the coefficient range continuing. In 2023, the autonomous pricing coefficient range for fuel vehicles was expanded once from [0.65, 1.35] to [0.5, 1.5], but the same was not applied to new energy vehicles at that time.

In 2024, the Financial Regulatory Authority’s Property and Casualty Insurance Department issued the “Notice on Promoting High-Quality Development of New Energy Vehicle Insurance (Draft for Comments),” proposing to adjust the autonomous pricing coefficient range for commercial new energy vehicle insurance from [0.65, 1.35] to [0.5, 1.5], but this document was not officially released.

In September 2025, the autonomous pricing coefficient for new energy vehicle insurance was first adjusted, expanding from [0.65, 1.35] to [0.6, 1.4].

Recently, the autonomous pricing coefficient for new energy vehicle insurance was adjusted a second time, further expanding from [0.6, 1.4] to [0.55, 1.45].

A responsible person from an insurance company said that this adjustment was carried out according to the planned schedule, gradually aligning with the pricing coefficient for fuel vehicles.

What is the impact on premiums?

For vehicle owners, changes in the pricing coefficient directly affect premiums. So, how will this recent adjustment impact new energy vehicle insurance premiums?

Previously, the autonomous pricing coefficient range for new energy vehicle insurance was [0.6, 1.4], and after adjustment, it is [0.55, 1.45]. Using the formula “Commercial vehicle insurance premium = baseline premium × NCD (No-Claim Discount) coefficient × autonomous pricing coefficient,” the premiums could theoretically decrease by about 8% or increase by about 3%. Data shows that after the adjustment, there is still considerable room for premium reductions, but some high-risk vehicles may see higher premiums.

“Based on the adjustment coefficients and current price space, most vehicle owners’ premiums will not be significantly affected, while some high-risk vehicles may see premiums rise,” the industry insider told reporters. They added that last year, the industry launched the “Good Insurance for Vehicles” platform to address difficulties in insuring operational vehicles, which has solved many issues related to insuring new energy vehicles. Overall, this adjustment is unlikely to cause major impacts.

Data shows that as of January 25, 2025, the “Good Insurance for Vehicles” platform was launched, and by October 2025, it had connected 37 property insurance companies, with over 1.1 million vehicles successfully insured through the platform, providing coverage of 1.1 trillion yuan.

In October 2025, the platform also added an insurance entry for fuel-powered operational vehicles, focusing on solving the “insurance difficulty” for high-claim-risk fuel operational vehicles.

It should be noted that the challenges faced by new energy vehicle insurance are not solely related to pricing coefficients but also involve systemic issues such as claims, product forms, technological changes, and risk assessment. Additionally, rapid iteration of new energy vehicles and the launch of Level 3 conditional autonomous driving cars will pose new challenges for underwriting.

During this year’s National Two Sessions, Zhou Yanfang, a deputy to the National People’s Congress and director of the China Pacific Strategic Research Center (ESG Office), proposed suggestions to promote high-quality development of new energy vehicle insurance. She stated that the complex market structure and diverse risk characteristics of new energy vehicles require more refined product design and pricing mechanisms. In terms of product innovation, she recommended clarifying policy guidance, accelerating the development of insurance products in emerging fields such as intelligent driving, battery swapping technology, and vehicle-battery separation, and issuing relevant guidelines to provide compliant space and institutional expectations for industry innovation. Regarding pricing mechanisms, she suggested implementing risk classification supervision, guiding the industry to enrich value-added services for low-risk household vehicles, and exploring dynamic pricing models based on driving behavior. For high-risk operational vehicles, she advocated establishing risk pricing models linked to indicators such as mileage, usage intensity, and battery health to achieve precise matching of coverage and risk levels.

Cover image source: “Daily Economic News” Media Asset Library