🚗🔋 The EV Insurance Train Wreck:

Batteries, Bureaucrats & Billions Lost

China wanted to lead the world into an electric vehicle utopia. They got the cars, the chargers, the government mandates, and now they’ve got an insurance disaster on their hands.

Insurers in China lost $800 million in 2024 alone covering EVs. Why? Because fixing one of these things costs a fortune. You ding a battery—which makes up a third of the car’s value, and you might as well junk the rest of the vehicle. Throw in sensors, chips, and Tesla-certified repair shops charging more than a Beverly Hills plastic surgeon, and suddenly the numbers don’t add up.

⚡ Government Knows Best? Not So Fast.

This is what happens when governments try to dictate what people must drive instead of letting the free market decide. Sure, EVs look shiny and eco-friendly on paper, but the hidden costs are eating insurers alive. In China, regulators are scrambling to patch the problem with new rules, data-sharing mandates, and even online platforms to “help” people get coverage.

But here’s the truth: when bureaucrats force-feed a product to the market, they never account for the side effects. Repair costs spike. Theft risk grows. (Think about it; if a battery is worth a third of the car, you’ve got a giant bullseye under your seat.) And once the system breaks, there’s no easy way back.

🏦 Billion-Yuan Bleed

The big dogs—Ping An, PICC, and China Pacific, control most of the EV insurance pie, and even they’re struggling. Smaller insurers? Forget it. Many don’t have the scale, data, or tools to survive in this rigged game.

Car companies like BYD, Tesla, and even Xiaomi are now stepping in to sell their own insurance policies. That’s not innovation, it’s desperation. When the automakers themselves have to subsidize coverage just to keep the machine running, you know the market’s upside down.

🔮 What It Means for You

Here’s the takeaway: EVs might be the future, but the present is messy. If it costs more to insure a car than to fuel it, consumers are going to think twice. And if thieves start targeting batteries the way they target catalytic converters in the U.S., you’re not just paying more; you’re at risk every time you park.

The lesson? Let markets, not mandates, pick the winners. Otherwise, you end up with a shiny new car in the driveway and an insurance bill that feels like a mortgage payment.

—
Jack Hapsburg
Got denied or lowballed on a claim? Good. You just found your people.

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