Could be.
However most people don't know that regular car insurance is only for what the insurance company say the car is worth. As you and I know, and I suspect he doesn't, classic cars need an "agreed value" policy. A guy with a string of used older BMWs (before the "all cash" i8) has almost certainly just got standard Allstate/State Farm type driving policy. Now, maybe he discovered this when the adjuster came out to his i8 and didn't add on any money for all the wrapping and gold tat that he had added.
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Personally, I think he is only just smart enough not to say "hey, the car is uninsured", instead using the euphemism "under-insured", so he doesn't look such a doofus to his "followers"
Or perhaps he was just on a minimal Liability Only policy that didn't cover accidents. Or fires.
Maybe he'll make a youtube movie about it one day