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Here’s Why Auto Insurance for the Rich Often Covers and Cost More

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Auto Insurance for the Rich


Auto insurance can be complicated and expensive.  If you are looking for tips to getting the best auto insurance, keep in mind the basic formula used by the insurance companies.  They look at your risk factors, analyze statistics, and weigh the cost of a potential payout to determine your premium costs.  How does this work for the ultra-wealthy?  It’s basically still the same process.  The primary difference is that auto insurance for the rich will typically offer more coverage and be considerably more expensive.  Here’s why:

  1. High end policies cost more because they have more items to insure.

While an average income earner may own one home, a wealthy client could own five.  The same holds true for vehicles, watches and other insured items.  Wealthy clients generally have more items to insure which means they need more coverage.  The addition of multiple vehicles automatically increases the costs of auto insurance for the rich.

  1. Wealthy people own more expensive items.

Insurance companies base their premiums on the likelihood of a claim and the cost of a claim if one was to happen.  The higher the value of the insured items, the more insurance that is needed and the more it costs.  For example, some traditional insurance carriers offer a maximum of $500,000 coverage for bodily injury and property damage but companies that target higher wealth clients might offer 1 million dollars or more (  This makes sense when you consider the costs of a potential payout.  A midlevel 2016 Honda Civic MSRP is between $18,640 and $26,600.  While a high end 2017 Maserati GranTurismo costs between $132,825 – $182,009 (  The difference between the cost of a claim for these cars is substantial. The cost of insurance and amount of coverage is calculated accordingly.

  1. Specialized items are more expensive and require more coverage.

Wealthy clients will often own items that require specialized insurance.  Antiques, high end jewelry, one of a kind art pieces and rare cars all require specific and expensive coverage.  Middle income earners are far less likely to have or need specialty insurance.

  1. The wealthy tend to opt for policies that have higher deductibles.

Higher deductibles mean that small claims will be paid for by the individual and not the insurance company.  This frees up more coverage for more expensive items and claims.

  1. International coverage adds to the cost.

Many wealthy clients travel abroad and have homes in other countries.  These clients will often pay to ship or maintain their items with them as they travel. This requires international coverage that crosses continents and increases premium costs.

  1. Agreed value of your car

If you are a high net worth client, your insurance may be considerably more expensive but it also has perks.  If you are an average earning client, agreed value is probably not one of the auto insurance coverage terms that you need to know.  Most people have standard auto insurance and if your car was totaled your insurer would pay out the estimated value of your car at the time of the accident.  But if you purchase your insurance from a high end insurer you may benefit from the agreed value policy.  With this type of policy, the insured and the insurance company agree on the value of the vehicle in advance.  Then, if the vehicle is totaled, the agreed value is the amount paid out.  This payout will cost the insurance company significantly more money and increases the premiums as a result.

  1. Other auto perks

Auto insurance for the rich can also offer a range of other perks.  Rental cars usually won’t have daily limits.  For someone who has a Porsche in the shop for repairs, a $40 daily limit on a rental car probably isn’t going to be acceptable.

Additionally, carjacking coverage is included.  While most standard comprehensive policies will pay to replace your vehicle as a result of a carjacking, high end coverage may also include counseling services and medical care (

High wealth insurance companies may also throw in some free extras for their preferred clients including roadside assistance and gap insurance.

  1. If you are looking for affordable premiums, high end insurers may not be for you.

While some high end insurers are making strides towards reaching out to the middle class, others are firmly entrenched in high net worth clientele.  Some companies garner business based on their name and the association with the wealthy.  These companies will charge higher rates and offer services and coverage you may not need.  You can work with an independent insurance agent to connect to a wide range of insurers to find the one that best meets your coverage and financial needs.

High end clients are often willing to pay for more expensive auto insurance for the peace of mind that their vehicles are properly insured.  There may also be a sense of prestige that comes with some of the names associated with high net worth insurers such as Chubb or Fireman’s Fund.  Whether you are looking for a high net wealth insurer or the best auto insurance rate possible, don’t overpay for insurance you don’t need.  Look over your assets with a professional and establish your actual needs, then shop your business around to get the best rates possible.

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