Why can't I buy car insurance?
2 Answers
It may be because there are too many claims, and you have been blacklisted by the insurance company. Insurance companies evaluate a customer mainly based on the number of claims, and the amount of compensation is basically not considered. There are three main types of vehicles that insurance companies refuse to insure: 1. Too many claims: Insurance companies allow up to 5 claims, and if the number exceeds 5, they will not renew the policy. Under special circumstances, after negotiation, renewal may be possible based on an increased premium. Since the regulations of different insurance companies vary, the specific situation should also be considered case by case. 2. Older vehicles: For cars with long service years, insurance companies tend to keep a respectful distance. The definition of an older vehicle varies from company to company, ranging from 7 to 15 years. For example, some companies stipulate that for vehicles over 10 years old, only third-party liability insurance and seat insurance can be purchased, while other insurances like car damage insurance and theft insurance can no longer be purchased. 3. Luxury cars: Luxury cars are also often refused insurance, and the reason is quite simple—the maintenance cost is too expensive, and the claim ratio is too high. The repair prices often range from hundreds of thousands to millions. If a luxury car worth millions or even over 2 million yuan makes a claim, the cost could be hundreds of thousands or even millions, while the premium for car damage insurance is only a few thousand. Faced with such 'low premiums and high claims,' insurance companies often choose to refuse coverage.
I once helped my cousin deal with a similar situation. There are several common pitfalls when it comes to being unable to purchase car insurance. First, there's the issue of documentation—if the vehicle registration is expired or the license plate hasn't been officially issued, insurance companies simply won't process your application. Then, there's the problem with the car itself—for example, vehicles that have been flood-damaged or involved in major accidents pose too high a claim risk and are directly blacklisted. One time, a neighbor bought a modified car with an exaggerated rear spoiler and full body kit, and the insurance company outright refused coverage. Also, if you finance a car, you're required to get full coverage insurance—banks won't allow you to purchase basic insurance. Another lesser-known fact: insurance companies can check their systems for any history of fraudulent claims by the car owner, so changing names to apply for insurance won't help. It's advisable to first check the status of your vehicle's documents. If you're buying a car from out of town, it's best to purchase insurance locally before driving it away.
