Why Can’t I Buy Insurance for My Car?
Car insurance companies aren’t in business to protect people. This is their primary purpose, but the reality is they’re in business to make money as much as any other company. In a way, car insurance is legalized gambling on the part of the company. They’re gambling that the drivers they insure won’t be in an accident before paying enough or more into their insurance premiums to cover the costs of repairs to the vehicle driven. Let’s go further to show you why you could be denied insurance for your car.
What determines whether or not you can buy insurance for your car?
If the car you drive is too much of a risk for the insurance company, they might deny coverage for that vehicle. Typically this happens for cars that fall into non-typical categories. According to Forbes, the cars that are most commonly nearly impossible to insure include:
- Grey market cars – legally imported but not sold in the U.S.
- Modified or altered vehicles
- Custom cars
- Exotic, high-value, or high-performance cars
- Antique, classic, or rare vehicles
- Exhibition cars
- Vehicles that are too heavy
- Branded title vehicles
Are certain car brands ineligible for insurance coverage?
Risk is the deciding factor for car insurance companies to offer coverage. For this reason, the company could deny you full coverage insurance for your car if you own certain brands. These cars are offered liability insurance but not comprehensive or collision coverage.
Some of the brands most insurance companies offer liability-only policies are:
- Aston Martin
Of course, seeing a list like this, you might assume owners of these cars should be able to afford to replace the car when in an at-fault collision.
Has Tesla ever been on the list of uninsurable cars?
Tesla was on such a list in the early days of the company. This was the case for many new electric cars. Insurance companies weren’t sure how to assess the risks or what could happen in a crash. After several years in the market, EVs are more understood, and Tesla vehicles have become accepted by insurance companies.
Tesla found a workaround for the lack of car insurance coverage by branching out into its own Tesla Insurance products for consumers.
Why are heavy vehicles denied car insurance coverage?
Some insurance companies will offer coverage for your car if it’s under a specified weight. Vehicles weighing over 10,000 pounds for some companies and 14,000 pounds for others are often denied any insurance coverage by traditional companies. The challenge with these vehicles returns to the risk factor and the damage a heavy vehicle can do to other cars on the road. Most SUVs weigh between 2,000 and 6,000 pounds, which puts this into perspective.
What is a branded title vehicle?
A branded title vehicle is a car deemed totaled by an insurance company that has been rebuilt and issued a rebranded title. Insurance coverage for these cars is difficult to obtain because companies are uncertain of the car’s value. Most rebranded/salvage title cars are only offered liability coverage.
Can how you use your vehicle cause you to be denied insurance for your car?
Personal insurance policies are the most common type of coverage and assume the vehicle’s use is traditional. This could mean daily commutes, running errands, and regular weekend trips. When used in other ways, your insurance company could require a different type of policy.
Some uses of your vehicle that make a personal policy unacceptable include:
- Commercial use
- Business use – electricians, plumbers, pool cleaners, etc.
- Delivery driver
- Livery – taxi or vehicle for hire
- Short and long-term rental
- Emergency services or law enforcement
Are all insurance companies the same?
Obtaining insurance for your car requires you to shop around to find the policy that works best for you. One company might deny your vehicle and its use, while another could be fine with how you want to use your car. It’s all about risk, and some companies aren’t willing to take on certain risks, which is why you might be denied insurance for your car.
Next, check out which states charge the most taxes for cars, or learn more about why you could be denied insurance for your car in the video below: