Which Vehicles Are Most Difficult to Insure?
Did you know that Washington DC is among the national leaders in electric vehicle sales? One particularly distinctive example of an EV is the Tesla Cybertruck. This new model from the upstart EV manufacturer has drawn strong reactions due to its unorthodox styling. Some love it, some hate it, but it’s hard to argue that it turns heads. Recently, a rumor has percolated through social media that Geico would be declining to insure Cybertrucks. This has since been denied by the company and appears to just be the sort of urban legend which spawns so easily in our modern information ecosystem. However, this got us thinking about insurance, and the challenges our clients, readers, and neighbors might face in obtaining it. Today’s Malloy Law blog post will explore which types of vehicles are most expensive and difficult to insure.
What Affects The Cost of Insurance?
While certain models and types of vehicles demand higher monthly payments from insurance companies, there are a myriad of other factors beyond the make and model which go into determining the final cost of insurance. These include:
- Driving Record
- Garaging Address (meaning location, even if not stored in a garage)
- Use of Vehicle (personal, business, commute, etc)
- Mileage
- Past Claims
- Any Period of Lapse in Coverage
- Level of Coverage Chosen
While many of these factors will be a matter of historical record and therefore beyond the driver’s control, the level of coverage which the driver chooses to purchase is one notable exception. With inflation at the forefront of many Americans’ minds and the already-high cost of living in the DMV, motorists may be tempted to skimp on auto insurance. We here at Malloy Offices have said it before and will reiterate here: purchasing all the insurance you can reasonably afford is almost always the best path forward. The level of economic security which a good insurance policy grants you cannot be overstated.
Which Vehicles Are Difficult to Insure?
Owners of certain types of vehicles may find it difficult to obtain insurance coverage. Some companies may also restrict the amount of coverage they’ll sell on certain types of vehicles. These types of vehicles include:
- Exotic Brand Vehicles (e.g. – Rolls Royce, Bentley, Bugatti)
- Limited Production or Limited Edition Vehicles (e.g. – anniversary or commemorative models, certain models of Ferrari, Corvette, et cetera)
- Vans carrying 12 or more passengers
- Camper vans
- Cargo vans
- Flatbed trucks
- Other commercial use vehicles
- Highly modified or “custom” vehicles
- Race or competition vehicles
- Golf carts
- Autonomous vehicles
- “Low-riders” and other low speed vehicles
- “Grey Market” vehicles (most commonly referring to privately imported cars not intended for use in the US. Japanese Domestic Market or “JDM” cars are a popular example of this practice)
If any of the above categories can be applied to a vehicle you are seeking to insure, don’t get discouraged. While large consumer auto insurance carriers may decline to insure your vehicle, you may have better luck with a smaller firm that specializes in cases like yours. As a direct-to-consumer industry, insurance companies have incentive to accommodate irregular situations like those listed above. Stay patient, do your research, and you’ll find insurance that works for your difficult to insure vehicle.
The Most Expensive Models of Car To Insure
According to data collected by Forbes, the top 5 most expensive popular models of car to insure are as follows, in descending order.
- Tesla Model S Performance
- Lexus ES 300H
- Volvo XC90 T8 Inscription
- Tesla Model 3 Standard Plus
- Nissan Altima 2.0 S
So what makes these vehicles expensive or difficult to insure? Two main factors drive the price of insurance, one mechanical, and one risk-based. Let’s explain each individually.
In mechanical terms, a vehicle may be expensive or difficult to insure just due to the way it’s built. Replacement parts may be expensive or difficult to source. A complex engine or drive train may require more intensive (and therefore expensive) labor than a simpler one. In the event of a claim, the insurer will be obliged to cover the costs of these complex parts and the labor associated with their installation. Therefore, the insurance itself will cost more.
However, in more macro-level terms, a company may charge more for a policy on a given vehicle due to a risk-based calculation. Keep in mind that when you purchase a policy from an auto insurance company you’re basically entering an asset portfolio with every other policy they have on the books. If the vehicle you drive results in claims paid out more often, then inevitably the cost to insure it will rise to offset the losses from claims paid. In short: you’ll be judged by the behavior of other people who drive the same car as you. Unfair? Certainly. But knowing that can and should shape your car and insurance buying decisions.
How Malloy Law Can Help
If you or a loved one has been involved in a car accident, don’t deal with the insurance company alone. Malloy Law’s car accident specialists will evaluate your case and pursue maximum compensation for lost wages, medical bills, and pain and suffering. Our dedicated staff is standing by to take your call. Contact Malloy Law today for a free consultation. Let’s win your case.
