# 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 that may see price fluctuations, most vehicle insurance premiums will not change much.

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 rapid advances 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 battery costs, integrated body structures, and complex sensors make repair costs far higher than those of traditional fuel vehicles. Minor scratches can turn into claims worth tens of thousands of yuan if sensors are damaged. On the other hand, characteristics such as younger owners and higher travel frequency increase accident rates, 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, and driver behavior. 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 flexibility in pricing, and consumers’ insurance prices will better reflect their risk levels, further reducing the subsidy of low-risk customers to high-risk ones.

In 2020, the vehicle insurance industry implemented comprehensive reforms, merging autonomous channel coefficients and autonomous underwriting coefficients into an autonomous pricing coefficient. Since then, the trend of expanding the coefficient range has continued. 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], though this document was not officially released.

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

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

Regarding this adjustment, a head of vehicle insurance at a certain insurance company stated that it was implemented according to the planned schedule, gradually aligning with the pricing coefficients for fuel vehicles.

For vehicle owners, changes in the insurance 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 the adjustment, it is [0.55, 1.45]. Using the formula “Commercial vehicle insurance premium = base 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 for owners, but premiums for some high-risk vehicles may become more expensive.

“Based on the adjustment of the 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. Last year, the industry launched the “Good Insurance for Vehicles” platform to address difficulties in insurance application and high costs for 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 October 2025, the “Good Insurance for Vehicles” platform, launched on January 25, 2025, has 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 added an insurance entry for fuel-powered commercial vehicles, focusing on solving the “application difficulty” for high-claim-risk fuel commercial 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 types, 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-electrical 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 commercial vehicles, she advocated establishing risk pricing models linked to metrics such as mileage, usage intensity, and battery health to achieve precise matching of coverage and risk levels.