Xiaomi Cars' Renewal Prices Drop Significantly! How Will the "Official" Car Insurance Enter the Market and Impact the Scene?

Recently, a screenshot of a Xiaomi car owner renewing their insurance has sparked widespread discussion online. The owner discovered that the premium quote from a company called Faba Tianxing Insurance was significantly lower than those from mainstream traditional insurers, with more comprehensive benefits. Faba Tianxing Insurance is the insurance company in which Xiaomi has taken a “curved” stake, and this move is interpreted by the market as Xiaomi’s “official” car insurance coming!

For long-term electric vehicle owners facing high insurance premiums, this price reduction is not just a simple market promotion but more like Xiaomi’s deep impact on the traditional auto insurance industry as a “cross-border” player. Industry insiders say that as the number of new energy vehicles continues to grow and competition in the auto insurance market intensifies, automakers through deep stakes in insurance companies are creating a full closed-loop chain connecting vehicle manufacturing and usage protection. This not only offers new options for car owners but also to some extent redefines the pricing logic and industry landscape of new energy vehicle insurance.

Beijing Launches “Xiaomi Car Insurance” First

Recently, a car owner posted that when choosing insurance for their Xiaomi car, Faba Tianxing Insurance has become an available option. According to the screenshot shared by the owner, Beijing Business Daily learned that this insurance includes 8 roadside assistance services, 1 vehicle inspection service, and 1 vehicle safety check. Overall, this insurance is not only cheaper but also offers more benefits than some older insurers.

Faba Tianxing Insurance, the service provider, is a new player in the insurance industry that officially opened in January this year. Through customer service, Beijing Business Daily learned that the company currently only offers auto insurance in Beijing, and coverage in other regions is not yet available.

The car insurance services provided by Faba Tianxing Insurance are more cost-effective, closely related to its shareholder relationships. Beijing Business Daily found that among its shareholders, Sichuan Yinmi Technology Co., Ltd., holding 33%, is a member of Xiaomi Group. Tianyancha information shows that Sichuan Yinmi Technology is 100% controlled by Beijing Xiaomi Electronic Software Technology Co., Ltd., which is 90% owned by Lei Jun.

Industry experts believe that Faba Tianxing Insurance’s lower prices mainly because Xiaomi has access to real driving and vehicle data, enabling more accurate risk pricing. Plus, direct sales channels eliminate middleman commissions, and ecological collaboration reduces operational costs. Angel investor and senior AI expert Guo Tao analyzed that on one hand, the shareholder background of Faba Tianxing Insurance provides synergy advantages, relying on Xiaomi’s big data capabilities to more precisely assess driver risk; on the other hand, internet-based models lower channel costs. Compared to traditional insurers relying on offline outlets and intermediaries, Faba Tianxing Insurance can acquire customers online through Xiaomi-related channels, saving middleman costs, which directly benefits pricing. Additionally, as a new entrant, Faba Tianxing Insurance may quickly gain market share through high-cost-performance strategies, attracting Xiaomi ecosystem car owners with more competitive prices to create a user scale effect.

New Models Brought by Automaker Entry

For a long time, “high insurance premiums for new energy vehicles” has been a common pain point among car owners. Many users complain: “All the money saved on fuel is spent on insurance.”

Guosen Securities pointed out in a related research report that the high growth of new energy vehicle insurance is driven by current “high costs and high claims” pressures, rooted in the fundamental risk structure differences between new energy vehicles and traditional fuel vehicles. The “three-electric” system—batteries, motors, and controllers—is costly and has high repair barriers, with risks that traditional actuarial models have not fully priced.

So, can automakers entering the insurance market lower the prices? Faba Tianxing Insurance just started operations and has not disclosed relevant data. However, its “peer,” BYD Insurance, has completed a full operating year. Data shows that in 2025, BYD Insurance’s average premium per vehicle was 4,054.53 yuan, which is relatively high, but all policies were sold through direct channels. This indicates that although BYD Insurance has not yet “brought down” the price of new energy vehicle insurance, it is actively working to reduce costs.

Industry insiders told Beijing Business Daily that the price of new energy vehicle insurance is not solely determined by the insurance company but is deeply linked to the entire new energy vehicle industry chain. Vehicle manufacturing costs, battery repair prices, and parts supply patterns all directly influence claims costs, which then affect premium pricing.

In fact, when automakers sell insurance, they can to some extent reshape the pricing logic and industry landscape of new energy vehicle insurance. Guo Tao said that the entry of new energy vehicle companies into insurance will bring multi-dimensional changes. In product design, insurance will be more tailored to the characteristics of new energy vehicles, such as coverage for battery degradation and charging safety. In terms of services, there can be deep integration of “vehicle, insurance, and services,” such as using vehicle data to pre-warn risks, providing maintenance and rescue services, and improving claims efficiency.

Guo Tao believes that the “official” car insurance offered by automakers has three main advantages: first, breaking down data barriers, as automakers control core data like batteries and motors, enabling more precise pricing and risk control; second, promoting ecological synergy, embedding insurance into the entire vehicle purchase and usage process—such as offering discounts on insurance at purchase or processing claims in real-time via vehicle systems, increasing user stickiness; third, cost control, leveraging their own channels and industry resources to reduce customer acquisition and service costs, while using risk prediction to reduce payout expenses, creating a competitive edge.

(Source: Beijing Business Daily)