What Makes a Car Impossible to Insure?

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Have you ever heard of a car that is uninsurable? While rare, there are instances where a vehicle is not worth the risk for the insurance companies involved. There are dozens of different reasons why this may happen. 

Sometimes, a vehicle may ironically be considered too high value to insure. Other times, the car has a problem that keeps it from being insured. Please read below to better understand what it takes to create (intentionally or not) an uninsurable vehicle.

Why Insurance Companies Refuse Certain Cars

To run at peak efficiency, insurance companies must constantly run risk assessments. In other words, when they come across a car that is considered high risk to insure, they will be less likely to approve any application for coverage.

So, what makes a car risky in the eyes of an insurance company? There are a few primary reasons why insurance companies may deem the risk too high. For example, the value of the car (and thus potential replacement cost) is too high, or the vehicle could be considered a danger on the road. 

Reasons Cars Become Uninsurable

While the two examples above are the most common, there are actually a variety of reasons why insurance companies may not opt to cover a vehicle. Other potential causes include:

  • Altered/modified vehicles
  • Antiques/rare finds
  • Exhibition cars
  • Exotic or high-value cars
  • Grey market cars (cars imported into the US)
  • High-weight cars

This is by no means an exhaustive list of reasons why a car may be deemed uninsurable. The simple truth is that humanity is quite creative when it comes to developing new vehicles, and it does take time for an insurance company to establish policies to match.

Technology and the Uninsurable

There is one final reason why an insurance company may opt to avoid insuring a car. These days, self-driving tech is becoming more readily available. However, it has not yet been perfected. Until such a time when self-driving vehicles are deemed safer than human-driven cars, it is unlikely that any vehicle based on this tech will be considered insurable. Keep that in mind before splurging on a shiny piece of new technology.

Self-Driving Cars & Trucks in Business

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The demand for self-driving cars has been ever rising in recent years. Many factors go into this demand, including convenience and safety. Yet, many forget one other factor – the effect self-driving technology can have on a business.

Developing alongside self-driving cars is the concept of self-driving trucks. The economy is still heavily reliant on trucks as a delivery method for necessary products. With that in mind, it becomes easier to see how having a fleet of self-driving trucks may be appealing to businesses.

Economic Impact

According to experts, about seventy percent of all goods are delivered via trucks, generating billions of dollars for the economy. However, the venture is not without cost. Truck upkeep and driver wages are not insignificant.

It is believed that the cost of maintaining a self-driving truck would be less than the combined cost of maintenance and pay for a standard truck. Additionally, drivers can only legally drive so many hours in a day, where a self-driving truck would not have those issues.

The potential for increased profits is there – and businesses want in. Kodiak Robotics, Waymo, Volvo, Tesla, Embark, and TU Simple are all working hard to develop their own versions of self-driving trucks. 

Increased Safety

As with the need to develop self-driving cars for consumer safety, there is a safety concern for self-driving trucks. According to Professor Robert W. Peterson of the Center for Insurance Law and Regulation at Santa Clara University School of Law, over ninety percent of accidents are caused by user error.

Businesses are hoping to increase the overall safety of the roads – and their employees – by switching to self-driving trucks. It will also reduce the wear and tear that drivers must go through.

Other Initiatives

More companies than ever are experimenting with self-driving technology as a way of doing business. For example, Amazon spent some time considering this (along with drones) as a delivery method.

Now, Domino’s is testing out their own form of automated delivery: Nuro. Their goal is to have deliveries be easy, safe, and an overall enhanced experience for customers. However, not many customers will enjoy this particular experience right now, as it is still limited.

Walmart is another company testing the waters of self-driving technology. They’ve joined forces with Argo AI and Ford Motor to try and create a new form of a home delivery system. If it works, it will revolutionize the way people shop (and receive their goods). 

How Vehicle Technology is Building a More Sustainable Future

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The race to create a sustainable car has been ongoing for decades – and it doesn’t look like it will be ending anytime soon. The desire to develop the subsequent functioning yet highly sustainable vehicle has increased right alongside the demand.

Lately, most auto manufacturers have put their attention towards electric vehicles. Given that electricity is a renewable energy source, this makes complete sense. Yet, it is not the only tactic that manufacturers are considering.

Electric Vehicles

Electric and vehicles, also known as EVs, are growing exponentially common these days. This is partially due to the government incentives available across the globe. Currently, the EV market is expected to grow at a CAGR exceeding twenty-one percent between 2019 and 2030. 

Despite the rising demand, a few problems are facing electric vehicles. For one thing, there is currently no standard among charging stations. While that may be a tolerable problem for smaller techs such as phones, it does not govern longevity for something as significant as a car. CharIN is one of several companies trying to encourage universal standards for charging, but it will take time.

Another focus for further developing EVs is the battery itself. This is the new heart of a car, where all of the power is stored. Currently, EVs depend on lithium-ion batteries, which means factors such as temperature and over-changing are legitimate concerns.

Battery Second Life

As mentioned above, finding greener solutions to deal with batteries is a must. One short-term solution, pushed by Analog Devices, is to repurpose spent batteries. Contrary to popular belief, batteries that have worn out from powering cars all day still have a bit of power in them. It isn’t enough to power a vehicle, but it is enough to provide a bit of electricity to those that don’t have it. Suddenly, that otherwise wasted energy can be used to provide cooking fuel to those that need it most. 

Green Tires

Believe it or not, greener tires are another consideration when it comes to making more sustainable cars. Rubber is not a sustainable product, so creating cars based entirely on this material is not practical or eco-friendly.

However, finding an alternative to rubber has become quite a challenge. Instead, companies are trying to find other ways to offset their carbon footprint. Time will tell which solution wins out.

 

Can the Latest Tech Lower Your Car Insurance Rates?

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With the rise of safe driving technology, one question on everyone’s mind is how will this affect insurance rates? Many are hopeful that better collision prevention will, in turn, reduce premiums. While others are concerned that the increase in tech costs will outweigh the potential benefits.

These days, people have high expectations for what technology can do for them. People also expect it to help them save money – and there are precedents to back this assumption up. Better technology has allowed for energy (and thus cost) saving alternatives, among other options. 

According to a study run by PwC, up to forty-one percent of consumers would walk away from an insurance company that failed to offer high-quality digital capabilities. In other words, if their insurance isn’t going to work with their tech, they’re not interested.

Making Drivers Safer

People today have access to technology that makes them safer. Motion and range sensors combine to create collision prevention technology, while cameras help drivers watch their blindspots.

It’s easy to assume that the tech designed to make us safer actually works. Studies have shown that while some technology has worked hard to make us safer – other forms provide too much distraction. In other words – the technology is only effective when those behind the wheel are also trying to be safe.

Additional Expenses

Unfortunately, there is no simple answer to this question. Yes, driver safety tech can help keep people safe – and thus, theoretically should reduce car insurance premiums. However, upon closer inspection, there’s one glaring problem with this premise.

The technology used to make drivers safer does not come cheaply, which means that when accidents do happen, the overall repair and replacement costs are higher. This means that most drivers are not likely to see a significant drop in their premiums.

Reducing Costs

Thankfully, there are a few alternatives for reducing insurance rates. For example, drivers can opt into customized insurance plans. In other words, a driver grants permission to have all of their driving data compiled and turned into one concise plan – no need to pay or unneeded insurance.

A study from the University of British Columbia found that people are not only willing to have insurance companies monitor their driving for customized plans – but they’re safer drivers because of it. It turns out that knowing somebody is watching your every move is all it takes to make a driver just a little bit more cautious. 

Blockchain Data and Car Insurance

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The insurance industry has been working hard to stay up to date with modern technology. Already the industry is making use of predictive analytics to help create customized plans.

This raises the question of how blockchain technology can help the industry. A blockchain is a way to securely store information. The highlight of this method would be the inability to change data once it has been established. In other words – hacking and malicious attempts at alterations will not work.

Smart Contracts

Smart contracts are but one of the ways that blockchain data and car insurance companies have found a perfect balance. Contracts are a part of daily life – especially for insurance companies. A smart contract is simply a more advanced version of the original. 

In this instance, they are digitally signed and stored through secure digital means (blockchain data). All parties involved in the contract, including the neutral third party, can access this data.

Due to the digital nature of smart contracts, it allows for a certain amount of automation. A computer can look at the contract, and if the terms have been met, activate the appropriate next step.

Advantages of Blockchain Data

Many advantages come from blockchain technology, including the information already mentioned in the section above. Digital contracts allow for ease of access – both for the insurers and the insured.

In turn, this helps erase confusion, increase communication, and, more importantly – ensure accurate information. For example, fraudulent claims will dwindle, as all relevant data will be stored in one location. To put it another way, it’ll be simpler than ever to catch fraudulent claims. 

The customer will also have higher levels of protection, as the data will be stored with a neutral third party. This will help ensure that the insurance companies hold up their end of the deal and leave avenues for when things do not happen according to plan.

Insurance companies can use this ready access to data to store client details, going beyond what is typical these days. Data such as driving habits, traffic records, and accidents can all be easily (and safely) stored in one location. 

While that may not sound like a significant advantage – it is. All of the data being in one place would further encourage customized plans, which would once again benefit both parties.

Predictive Analytics and Car Insurance

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With the way technology has been improving, it would inevitably begin impacting every industry out there—even the insurance industry, where developments such as predictive analytics have been making waves.

Predictive analytics is a form of machine learning that uses data (usually in the form of statistics and historical data) and algorithms to identify patterns and future possibilities. When it comes to insurance, that can make a world of difference for insurers and clients alike.

How It Works

As a whole, predictive analytics has been a growing trend, with many different industries trying unique ways to apply the technology. Predictive analytics has become so common that anyone spending any time online has likely come across it. Predictive analytics play a part in ad generation, search engine optimization, and website recommendations. And it’s all based on an individual user’s history.

Predictive Analytics Meets Car Insurance

When it comes to car insurance, there’s a lot that predictive analytics can do to help improve the industry. For one thing, it can (and will) allow for a more personalized experience. Gone are the days when an insurance plan was one size fits all.

These days, machine learning can grind through a driver’s history and develop a custom insurance plan uniquely suited to them. For example, a safe driver with a record of following speed limits, wearing seat belts, and avoiding tickets can rest easy knowing that they got the best deal possible.

Applications of Predictive Analytics

The possibilities for predictive analytics don’t end there. That’s the beauty of this customization engine. Insurance companies can use this technology to compile crash data and even flag fraudulent claims. It all depends on the data they feed the program.

Marketing campaigns have already begun to make heavy use of predictive analytics, and soon insurance companies could be doing the same thing. Let’s go back to that online example from earlier. A person hops online, does some browsing, and calls it a day. The next day, they get an email advertising a sale on an item they were looking at. This is not a coincidence but rather a carefully orchestrated plan.

Insurance companies can do the same thing – marketing the right plan to the right clients and knowing how to best approach them. Some clients prefer to be approached via email, others via phone or text. Machine learning can help process that information and create a personalized plan for thousands of potential clients.

Auto Tech Driving Insurance Explained

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Our interactions with cars change every year as new technology comes out to improve the experience. As such, auto insurance must find ways to adapt right alongside the industry. This is no mean feat and takes a lot of careful planning. 

Most recently, auto insurance companies have begun to develop automated ways of measuring and creating new plans. There are many benefits to this feature, including highly customizable plans.

The Complication

There is one complication with the plan to go full automation when it comes to insurance: people’s willingness. According to CCC Information Services, Inc.’s Crash Course report, until recently, most drivers were unwilling to share such detailed and personal information.

What sort of information do these metrics require? The predominant concern revolves around mileage. New features allow for easy personal data collection, including driving details, travel speed, and location.

Up until recently, only 41% of those surveyed were willing to share their data. That number has gone up to 54% and is likely due to the changes that the pandemic brought with it. Primarily the reduced time spent in cars.

One of the main concerns from users, unsurprisingly, is the breach of privacy. Specifically, these features would require drivers to give up information such as where they at which times, which can be a deal-breaker for many. According to a study run by Pew Research Center, only 37% of Americans found the offer appealing, even when taking benefits into account.

Benefits

Despite these concerns, there are plenty of benefits that come with auto tech driving insurance. Primarily, the data used to create an individual’s plan would be based on their driving – and theirs alone.

Instead of filling out several complicated forms, drivers can instead give access to their data metrics, allowing insurance companies to create an accurate and detailed plan that fits the users’ needs. It sounds complicated, but in truth, it makes things simpler. 

This practice is called usage-based insurance. In practice, it works through an app on your phone, which then transmits data to your insurance company. Most companies experimenting with the tech provide rewards for using the app – rewards that get better the more you use it.

Insurtech Explained and What It Means for Car Insurance

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The advent of Artificial Intelligence (AI) is changing the way many industries operate; there’s no escaping it. Even the insurance industry is facing change, thanks to the creation of Insurtech, aka Insurance Technology.

What is Insurtech? 

Insurtech is a term for a broad range of technology, all of which is applied towards the insurance industry. More specifically, it’s the use of artificial intelligence and blockchains in the insurance industry. This applies to car, medical, life, and home. 

Insurtech was created to save insurance companies money, streamline the process, and make better and customized customer service. In the last few years, the Insurtech industry has boomed. New startups and older businesses alike are competing to create the best models, and it’s altering the way we look at insurance.

What Are the Different Types of Insurtech?

There are now several different types of Insurtech, a variety formed from the many different needs of the insurance industry. Each style has a different specialty, and there’s no need for mutual exclusivity between companies and types.

  • Artificial Intelligence/Machine Learning – Used for personalized services, competitive pricing models, predictive analytics, and chatbots.
  • The Internet of Things (IoT) – IoT is used for omnichannel communication and telemetry-based insurance policies and claim processing. 
  • Blockchain – Used to prevent fraud, create smart contracts, and help to track sensitive data.
  • Robots/Drones/Etc. – Can assist in designing programs, plans, find risk factors, operate where it is unsafe for humans, and create automation.

How Does Insurtech Work?

The end goal of Insurtech is convenience and efficiency. This technology has been designed to help both internally and externally. Meaning that the insurance companies and their clients both gain an advantage through its use.

Theoretically, Insurtech will make insurance more accessible, lower costs, decrease wait times, and allow for customized claims. All while reducing payroll costs, as there isn’t a person behind all of this.

What Are the Benefits of Insurtech?

Many of the benefits for Insurtech have already been mentioned above. They include: customized insurance policies, reduced run costs for insurance companies, better claims management, and better customer-facing tech, including apps and chatbots.

What Are the Concerns of Insurtech?

As with any rising technology, there will naturally be some concerns to go along with it. The dominant concern regarding Insurtech is privacy. Consider all of the private and sensitive information that insurance companies must collect and store. The introduction of any new technology always increases concern regarding the safety of this sort of information.

 

Does your Malpractice Insurance cover these key events?

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Amigo MGA Malpractice InsuranceIn addition to all the other costs of becoming a doctor, from the time in school to the ensuing debt, medical professionals also need to be concerned about malpractice insurance. Work on the human body can often go awry, since best practices change with some frequency, no two bodies are created equal, and doctors are people too. As such, doctors need to be covered in the event that a procedure goes wrong and the patient sues for damages caused. Even well-intentioned doctors make mistakes, so coverage is required by most practices and hospitals as a precautionary measure.

If you’re new to the medical field and need to purchase malpractice insurance, or if you haven’t reviewed your malpractice insurance policy in some time, a few seemingly-small aspects may slip through the cracks. Make sure you’re covered for the following instances.

Cyber Insurance: As we all remember too well from the recent cyber attacks against hospitals in the EU and other countries, the cybersecurity in healthcare facilities is often subpar, despite how vital it is to the wellbeing of the patients. Doctors today need to ensure that they’re covered in the event of a cybersecurity breach, data leakage, or malicious hostage situation.

Volunteer Insurance: Many doctors spend parts of their careers volunteering overseas to provide free or reduced-cost medical care to sick people in developing nations. Some malpractice insurance policies only cover work on American soil or within the walls of the doctor’s practice. If you plan to offer your services to those in need, make sure that you choose an insurance plan that covers you in case something goes wrong during a pro bono procedure.

Non-Medical Protection: As the healthcare industry is, in fact, a business, there will be some business-like liabilities you’ll need to protect yourself against. Take, for example, tax forms or insurance claims. In the event that you accidentally misfiled your income tax or made a mistake filing a Medicare claim, you’ll need some insurance to cover the costs of correcting the problem and all the red tape that will certainly ensue.
Overdose Insurance: The opioid epidemic is hitting crisis levels in some states, and as such, the likelihood of being sued for an over-prescription that lead to an addiction or death is climbing. As was made clear in the riveting work of investigative journalism American Pain by John Temple, the federal government now has a vested interest in prosecuting doctors and facilities it dubs “pill mills,” a term used to describe offices that dole out opioids with reckless abandon for a profit. With this in mind, ensure that your malpractice insurance will help you fight claims that your medical prescriptions were malicious and solely for profit.

The Importance of Personal Insurance

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Amigo MGANavigating the world of insurance can be a tough one. No one likes the idea of losing their valuables to the unplanned curveballs life throws. How do you know what’s worth protecting when investing in personal insurance? Following this handy list can help inform your choices when understanding which insurance is most important, and what a program typically covers.

Simple, important and a necessity if you’d like to go anywhere with four wheels, automotive insurance is paramount. However, it’s not enough to understand your state’s minimum requirements and purchase a plan based around that. Be sure and consult the agent you’ve chosen to purchase insurance from when building a policy. More often than not, they are genuinely attempting to provide you with the best possible coverage for your money, and auto-insurance is one of the few that get utilized the most.

Renter’s or homeowner’s insurance is fantastic for safeguarding what matters most. Renter’s insurance can differ from state to state, and where you decide to rent. Even if your complex does not require the purchasing of renter’s insurance, protecting your possessions from break-in or incidental damage is always a good idea. Homeowner’s insurance is a must-buy for what will possibly be the largest investment of your life. When carrying a mortgage, homeowner’s insurance is a necessity, but keeping a policy intact for when your mortgage is paid off is the best way to protect yourself from fire or natural disaster. Beyond disasters, homeowner’s insurance can and will protect you should your possessions be stolen, or an accident occur on your property.

Lastly, umbrella insurance is an excellent catch-all should the worst happen. All types of insurance have their limits, and should you find yourself in a situation where those limits are met and exceeded, umbrella insurance is designed to cover the overflow. Able to cover you during overseas travel, umbrella insurance is an excellent safety net should your initial fail-safes give way.