BUSINESS

Chinese Carmakers Roll Out Self-Driving Car Insurance as Drivers Fret Over Liability

Published: Apr. 30, 2025 5:15 p.m. GMT+8

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Chinese EV-makers including XPeng Inc. are rolling out insurance that covers assisted driving systems. Photo: IC Photo

Chinese electric-vehicle (EV) makers are launching insurance that covers assisted driving systems, offering buyers a measure of protection as rules around liability on increasingly advanced features remain unclear.

XPeng Inc. on Monday launched a smart driving insurance service, priced at 239 yuan ($33) per year, with a maximum liability of 1 million yuan. The move follows similar offerings from rivals such as Huawei Technologies Co. Ltd., Chongqing Changan Automobile Co. Ltd.’s Avatr, and Guangzhou Automobile Group Co. Ltd., with Xiaomi Corp. also preparing to launch its own version.

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Chinese EV makers, including XPeng, Huawei, Avatr, and soon Xiaomi, are launching insurance products covering losses related to advanced driver assistance systems (ADAS), with coverage up to several million yuan.
These smart driving insurance policies, bought by automakers and offered to ADAS-equipped car buyers, address ambiguity in accident liability as laws lag behind technological advances.
Policy features include coverage for incidents shortly after system disengagement and aim to filter out automakers with weaker safety records.

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Who’s Who

XPeng Inc.: XPeng Inc. has launched a smart driving insurance service priced at 239 yuan ($33) per year, offering coverage up to 1 million yuan. The insurance compensates drivers for losses in cases where assisted driving systems may have contributed to a crash and is available to both new and existing XPeng car owners who purchase or renew insurance through company partners. XPeng is also advocating for updated laws to clarify accident liability for smart vehicles.

Huawei Technologies Co. Ltd.: Huawei Technologies Co. Ltd. is among Chinese electric-vehicle makers offering insurance covering assisted driving systems. These smart driving insurance policies are purchased by automakers, including Huawei, from insurance companies and bundled as perks or add-ons for buyers of vehicles equipped with advanced driver assistance systems (ADAS), aiming to compensate drivers for losses in cases where ADAS may have contributed to a crash.

Chongqing Changan Automobile Co. Ltd.: Chongqing Changan Automobile Co. Ltd. is among the Chinese electric-vehicle makers offering insurance that covers assisted driving systems. Their Avatr brand has launched such insurance, similar to initiatives by XPeng, Huawei, and others, providing protection to buyers of vehicles equipped with advanced driver assistance systems (ADAS) as legal frameworks for liability are still developing in China.

Avatr: According to the article, Avatr, which is backed by Chongqing Changan Automobile Co. Ltd., has launched its own insurance offering for vehicles equipped with advanced driver assistance systems (ADAS). This type of insurance aims to protect drivers in cases where the assisted driving system may have contributed to a crash, following similar moves by other Chinese EV makers.

Guangzhou Automobile Group Co. Ltd.: Guangzhou Automobile Group Co. Ltd. is one of the Chinese automakers offering smart driving insurance for vehicles equipped with advanced driver assistance systems (ADAS). The insurance aims to provide compensation for losses if ADAS features contribute to a crash. These policies are bundled as perks or add-ons for buyers and reflect the industry's efforts to bridge gaps between advancing vehicle technologies and existing legal frameworks regarding liability and safety standards.

Xiaomi Corp.: According to the article, Xiaomi Corp. is preparing to launch its own smart driving insurance for vehicles equipped with advanced driver assistance systems (ADAS). This move follows similar offerings from other Chinese EV makers. Additionally, a fatal crash involving a Xiaomi SU7 electric sedan, which killed three passengers, has fueled national debate over assisted driving systems and their proper use.

QCraft: According to the article, QCraft is an autonomous driving startup. Its CEO, Yu Qian, argues that a willingness to insure advanced driver assistance systems (ADAS) signals a company’s credibility. He believes that if a company is confident enough to pay out claims for ADAS-related incidents, it will earn greater consumer trust.

AI generated, for reference only