Strategies to Take When Your Car Is Not Covered by Insurance

Handling Car Insurance Denial: Uncovered Vehicle Solutions

Insurers often charge more for certain types of vehicles. But can they say no to insuring you just because of the car you drive? According to experts, the answer is yes. Insurers don’t want to take risks that might cost them money. For example, they might not cover cars easily stolen in your area. Some insurers might not want to cover you if you have a fancy sports car or a rare collector’s car.

Insurance companies consider many things when deciding what cars to cover and how much to charge. They also consider your overall risk, like your age, gender, driving record, and sometimes your credit score. Where you live matters too. If you live in a busy area with lots of accidents, insurers see you as riskier to insure than someone in a quieter place. And each type of car, whether a powerful sports car or a regular SUV, has its own level of risk.

Easily Stolen Vehicles

In some states, insurers stopped accepting applications for specific model years of Hyundai and Kia cars because they were quickly stolen. People shared videos online showing how to start and drive these cars without the keys.

Insurers may also worry about other car models that often get stolen, especially when combined with specific driver characteristics. For instance, insurers might not want to give you a policy if you’re a high-risk driver with a Corvette. Experts say insurers may also see collector’s items and historical cars as too risky to insure.

According to the National Insurance Crime Bureau (NICB), vehicle thefts in the United States have gone over one million for the first time since 2008. This is because used car prices are high, making theft more tempting. Thieves are also stealing catalytic converters from cars because they contain valuable metals. This can affect your insurance premium or even make it hard to get a policy for specific cars, especially ones like pickup trucks with more ground clearance, which makes stealing parts easier.

The Key Takeaway

But the good news is most insurance companies cover cars that many people drive. But if an insurance company says no, you might have to look for other insurers or consider specialty insurers. If you have a car that no one wants to insure or a bad driving record, you can turn to a particular type of insurance called “assigned risk” or “residual” insurance. It’s like a last option for people who can’t get insurance anywhere else.

Every state has a rule that says there has to be a way for almost everyone to get insurance. They have programs to help people who can’t find insurance independently. A nonprofit organization called AIPSO runs these programs for most states. They have a website where you can find someone to help you get the assigned risk insurance. But be ready to pay more for this insurance—it can be up to 50 percent more expensive than regular insurance.

Insurance for Fancy and Rare Vehicles

For fancy and rare cars, there are specific insurance policies available. These policies consider the car’s agreed-upon value and how much you plan to drive it yearly. To find these policies, the best way is to search online. You can use Google to find insurance companies specializing in insuring your state’s collector cars.

Don’t assume you can get insurance quickly when shopping for a car. Check if you can get insurance for the specific car you want and how much it will cost. The more you know about insurance before buying the car, the fewer surprises you’ll have later on.

Watch the following YouTube video to learn about the five ways to get cheaper insurance for your vehicle.

Sacramento Personal Injury Attorney

I’m Ed Smith, a California personal injury lawyer. If you or a family member has suffered severe injuries in an accident within Sacramento or any other location in Northern California, we urge you to contact our reputable law firm for immediate assistance. You can contact us at (916) 921-6400 or (800) 404-5400, and our legal experts will provide compassionate, free, and friendly advice.

With a rich legacy of serving clients since 1982, we have consistently demonstrated our commitment to obtaining the highest possible Verdicts and Settlements for those we represent. Our track record speaks for itself, showcasing the positive outcomes we have achieved for our clients.

Image by Tumisu from Pixabay

cha llo [cs 748]

Contact Information