Some Chinese drivers are finding their brand new cars are already insured under someone else’s name
Published on Aug 02, 2025 at 6:34 PM (UTC+4)
by Claire Reid
Last updated on Jul 31, 2025 at 1:49 PM (UTC+4)
Edited by
Kate Bain
Chinese customers of several big brands have found their brand-new cars already insured under someone else’s name.
Customers of several brands have brought their new vehicles home only to find that they have already been insured.
A report from Reuters unearthed dozens of complaints from car buyers online who said automakers had insured their vehicle under someone else’s name before they bought it.
And it turns out there’s a sneaky reason behind it.
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Why Chinese motorists are discovering their new cars already insured
Chinese carmakers are enjoying a surge in market share lately, even overtaking European marques in their own markets.
However, a new report from Reuters claimed that some automakers are giving their sales a boost, at least on paper, by allegedly insuring them before they’ve actually been sold.
The controversial tactic effectively inflates sales by marking a car as sold once it is insured, even if the car hasn’t been bought yet.
An earlier report from Reuters claimed Neta booked early sales of at least 64,719 cars between January 2023 and March 2024 using the method.
The news organization has since found that other companies could be doing the same and reviewed 97 separate complaints posted on consumer websites.
More than a dozen of those who complained claimed they were told at the dealership that it is common practice to help meet sales targets.
Dealerships affiliated with FAW Hongqi, SAIC Roewe, SAIC VW, Dongfeng Nissan, GAC Toyota, GAC Honda, and SAIC GM have told official media that insuring unsold cars was used to meet sales targets.
However, a spokesperson from Honda appeared to contradict that, telling Reuters that GAC Honda prohibits dealerships from insuring unsold cars and said any dealers found doing so would be investigated and dealt with.
FAW Hongqi also said it didn’t use the method, while GM China said that only deliveries count towards its sales records.
When will Chinese cars land in the US?
With or without the tactics mentioned above, it’s fair to say China has been dominating car sales across the globe in 2025.
In Europe, Chinese brands have seen sales rise by 91 percent to 347,100 units in H1.
And it seems that most US automakers agree that Chinese-made vehicles, like BYD, will eventually come to the American market.
The Kerrigan Advisors’ 2025 OEM Survey polls top executives across the automotive industry.
Its most recent report revealed that 76 percent thought Chinese-made cars ‘will eventually’ enter the American automotive market.
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Claire Reid is a journalist who hails from the UK but is now living in New Zealand. She began her career after graduating with a degree in Journalism from Liverpool John Moore’s University and has more than a decade of experience, writing for both local newspapers and national news sites. Claire covers a wide variety of topics, with a special focus on cars, technology, planes, cryptocurrency, and luxury.
