Chinese electric vehicle maker BYD has been rapidly expanding its domestic sales by leveraging affordable prices.

However, it has been found that the insurance losses incurred by insurers in the event of an accident are significantly higher than those for other imported electric vehicles.

If high loss ratios persist, the possibility of a sharp increase in car insurance premiums for BYD vehicles next year is also being raised.

According to data provided by the Korea Insurance Development Institute to Democratic Party of Korea lawmaker Park Sang-hyuk, the average property damage loss ratio for four BYD passenger car models in the first half of this year stood at 168%.

This was about 1.6 times the average of 103% for imported electric vehicles, and 58 percentage points higher compared to 110% for domestic electric vehicles.

The loss ratio is an indicator showing how much of the losses insurers cover due to accidents compared to the premiums they receive.

A loss ratio of 168% means that for every 1,000 won collected in premiums, 1,680 won has been or is expected to be paid out in insurance claims.

Looking at individual models, the compact hatchback Dolphin was the highest at 185.5%, followed by the Sea Lion 7 at 184.9%, the Seal at 174.8%, and the Atto 3 at 127.4%.

The insurance industry views the relatively long repair periods for BYD vehicles as a factor contributing to the high loss ratio.

The average repair period for BYD vehicles in the first half of the year was 9.8 days.

This was 4.5 days longer than the 5.3 days for domestic electric vehicles and 1.6 days longer than the 8.2 days for imported electric vehicles.

Rental car costs paid while vehicles are being repaired also increase.

The average rental car payment days for BYD vehicles was 9.4 days, which was longer than the 5.4 days for domestic electric vehicles and 8 days for imported electric vehicles.

An insufficient accident repair network is pointed out as the background behind the lengthy repairs.

BYD sold 17,523 units from January to August this year, rising to fourth place in imported car sales just two years after entering the domestic passenger car market.

However, there are only 20 service centers nationwide.

Among these, only five locations across the country—four in the capital area and one in Busan—are capable of repairing accident vehicles such as sheet metal and painting.

Only light maintenance and general inspections are available at the remaining 15 locations.

The insurance industry believes that if such high loss ratios continue, an increase in insurance premiums may be inevitable.

BYD Korea maintains its position that it will rapidly expand its maintenance network.

BYD Korea stated that it will increase the number of service centers from the current 20 to 26 by the end of the year, while simultaneously strengthening maintenance personnel, technical capabilities, and service processes to reduce vehicle repair periods and improve service quality.

(Reported by Kim Minjeong | Video by Kim Kihyun | Graphics by Yook Do-hyun | Produced by SBS Digital News)