Every Economic Daily Reporter | Tu Yinghao, Yuan Yuan; Every Economic Daily Editor | Dong Xingsheng
Mr. Wang, an EV owner in Shanghai, has about 2 months left before his vehicle's renewal period arrives. Recently, he received a call from a sales representative at his current insurer along with a renewal proposal.
Surprisingly, the plan offered not only services like designated drivers and roadside assistance but also promised shopping cards or cashback. Mr. Wang told a reporter from The Daily Economic News (referred to as "the reporter") that the first-year insurance premium for this new energy vehicle was 5400 yuan, while the second-year actual payment was 5200 yuan. This year, for the third-year coverage, after factoring in nearly 1,000 yuan in cashback, his total insurance cost dropped significantly to over 4200 yuan.
In recent years, the industry has intensified efforts to control auto insurance costs, with cashback on car insurance explicitly prohibited. Is this practice widespread in the new energy vehicle (NEV) insurance sector? Recently, reporters from The Economic Daily interviewed multiple NEV owners and found significant variation in renewal cashback practices: many owners reported still receiving 200 yuan worth of cards or points as cashback, while others stated they received no cashback after purchasing coverage.
Image source: Meijing Media Asset Library
5100 multi-policy premium, cashback of nearly $1,000
"The other party said the rebate is generally 95%, but since I didn't file a claim or incur any demerit points, my rebate was higher," Mr. Wang told The Economic Daily.
The renewal plan covers "16.6K vehicle damage + 300K third-party liability + compulsory traffic insurance + supplementary comprehensive insurance for drivers and passengers." The quoted price is over 5100. Additionally, the salesperson promises a 900 gift card rebate; cash rebates are also available.
Specifically, the commercial insurance includes: New Energy Vehicle Comprehensive Insurance with coverage of 16.6 million yuan and premium of 1965.08 yuan; New Energy Vehicle Third-Party Liability Insurance with coverage of 300 million yuan and premium of 1608.62 yuan. Additionally, it covers Driver Liability Insurance with coverage of 1 million yuan, Passenger Liability Insurance with coverage of 1 million yuan per seat × 4 seats, Supplementary Medical Expenses Outside Social Security Coverage (Third Party), and External Power Grid Failure Loss Insurance with coverage of 16.6 million yuan. Adding Supplemental Driving Personnel Comprehensive Insurance with a premium of 621 yuan and Compulsory Traffic Accident Liability Insurance with a premium of 760 yuan, the total premium exceeds 5100 yuan.
Mr. Wang said the quoted premium is comparable to last year's, but with the salesperson's promise of a rebate card or cashback, his total outlay this year will be only about 4200 yuan—below his expectation. "The new energy vehicle was purchased at the end of 2024. It has been insured for two years without any claims or traffic violations," Mr. Wang told the reporter.
Mr. Wang then approached another major company for a quote. Under a core coverage plan including approximately 17 yuan in vehicle damage insurance, 300 yuan in third-party liability insurance, compulsory traffic insurance, and personal accident insurance, the second company also offered substantial cashback incentives: 445 yuan in cash plus a 100 yuan online mall voucher (redeemable for daily essentials). Ultimately, Mr. Wang chose to renew his policy with the original provider. "I received nearly 1,000 yuan in cashback transfers before I even made the payment," he told reporters.
However, experiences vary among vehicle owners. Some new energy vehicle owners reported receiving no cashback when renewing their insurance, while several others who recently renewed mentioned receiving a gift card or points, though the value was modest. These rewards can typically be used for online shopping at a mall, with face values generally around 200 yuan.
Professor Wang Guojun from the School of Insurance at University of International Business and Economics noted in an interview that cash rebates on new energy vehicle insurance reflect market-based risk pricing. "Insurers assess risk across multiple dimensions, including claims history, traffic violations, and renewal timing. High-quality customers often have more room for concessions. Additionally, differing market strategies and claim pressures among insurers lead to variations in discount levels and forms." Wang also emphasized, "Cash rebates constitute a prohibited form of price undercutting under regulatory rules, carrying compliance and payment risks."
Retain premium users with exclusive promotions and value-added services.
Mr. Wang was puzzled about why the cashback discount was so high. The insurance salesperson explained that the generous discount is based on two factors: first, Mr. Wang has had no claims or traffic violations in the past two years;
Second, your car insurance expires in 50 days. Renewing now qualifies you for significant cashback rewards.
According to the commercial auto insurance premium pricing formula, Commercial Auto Insurance Premium = (Base Pure Risk Premium) / (1 - Expense Loading Ratio) × No-Claim Discount (NCD) Coefficient × Traffic Violation Coefficient × Discretionary Pricing Coefficient.
An insurance industry insider noted that if a customer goes several years without filing a claim, the no-claims discount coefficient decreases annually. Additionally, violation records affect premiums. Combined with each insurer's vehicle risk management and autonomous pricing coefficients, drivers with good driving habits typically see significant premium reductions starting in their third year.
Multiple industry insiders noted that cashback offers are closely tied to insurers' retention efforts. "Sales teams aim to retain high-value drivers by leveraging information asymmetry and urgency, prompting them to finalize policies before comparing quotes," said one auto insurance professional. The period from 30 to 15 days before expiration is widely recognized as the "golden renewal window," during which intermediaries or agencies typically offer maximum discounts. As the renewal date approaches, more companies submit quotes, increasing negotiation leverage.
Mr. Wang also noted that the value-added services offered by several major insurers are quite attractive. A list of value-added services provided by a sales representative from one insurer shows benefits including 445 yuan in cashback, plus designated driving, vehicle inspection assistance, safety driving assessments, 12 roadside rescue calls, on-site emergency repairs, battery jump-starts, tire changes, towing and lifting,困境救援 (emergency recovery), and water delivery. Another company's plan includes clauses for roadside assistance (2 times), vehicle safety inspections, designated driving, and inspection assistance as part of its value-added services.
Mr. Wang's experience is far from unique. Recently, a Beijing new energy vehicle owner shared their renewal process with reporters—besides a 200 yuan shopping card, the value-added service package included multiple benefits: complimentary year-round scratch protection worth 3800 yuan, a repair gift pack valued at 600 yuan, nationwide 24-hour rescue services for the entire year, rapid injury claims processing, upgraded rescue support, and other 15 claim-related services.
Insurance companies vie to capture the home-use new energy vehicle market
According to data from the China Association of Automobile Manufacturers, new energy vehicle sales reached 1065 million units from January to 8 in 2026, a year-over-year increase of 10.7%. This accounted for 52.4% of total new car sales, meaning approximately one out of every two new cars sold was a new energy vehicle.
From the underwriting perspective, data released by the Society of Actuaries in China and the China Banking and Insurance Information Center shows that 2025 saw 4358 thousand new energy vehicles insured, generating premium income of 1900 billion yuan. Although overall industry underwriting losses still exceeded 50 billion yuan, data from 2025 indicates that the combined ratio for new energy vehicle insurance across the sector decreased by 1.3 percentage points year over year.
For the first half of this year, the loss ratio for new energy vehicles declined. PICC Property and Casualty President Zhang Daoming attributed this to two key factors: First, an increasing proportion of older vehicles has lowered the overall loss ratio. As drivers become more familiar with vehicle performance, the loss ratio shows a significant downward trend as vehicle age increases.
Second, continuous iteration and deep application of intelligent driving technologies have contributed to a reduction in vehicle accident rates.
Facing a profit trap caused by high EV parts costs, difficult repairs, OEM control over after-sales services, and an excessive early share of ride-hailing vehicles, the "Big Three" insurers are no longer blindly pursuing scale. Instead, they are shifting to a strategy of "quality over quantity." In this transformation, securing high-quality private vehicle owners has become the key to breaking the deadlock and achieving profitability.
Chen Hui, General Manager of CPIC Property & Casualty Insurance, stated at the China Pacific 2025 Annual Performance Conference that to better manage new energy vehicle insurance business, the company has achieved significant improvement in overall business costs through exclusive operations by car brand partners, technology-enabled claims loss reduction, and strengthening of its service system. The home-use new energy vehicle segment has now entered a stable profit zone.
Industry insiders noted that competition in new energy vehicle insurance for private cars is already intense; with the growth rate of new energy car sales slowing this year, competition in the private car segment has further intensified.
Regarding insurers increasing their "stakes" to retain high-quality customers, Wang Guojun analyzes: First, high-quality customers have fewer claims and controllable payouts; the premium base for new energy vehicles is high, resulting in strong underwriting profitability.
Second, new energy vehicles represent a key growth segment for auto insurance. Acquiring these customers enables the accumulation of battery, motor, and electronic system claims data to refine risk pricing models. Additionally, auto insurance serves as a customer acquisition channel, allowing us to uncover broader insurance needs and drive sales across other product lines.
Third, auto insurance customers are highly mobile, making it easy for competitors to poach high-quality clients.
Industry experts recommend that car owners prioritize policy coverage, three-electric system liability, and claims service when purchasing insurance, rather than choosing based solely on cash rebates. Maintain safe driving habits to minimize accidents and avoid significant premium increases. Also, be cautious of private cash rebate promises from agents; opt for official channels for your insurance purchase.
