For her birthday, Kylie Jenner received a $220,000 Mercedes Maybach from her boyfriend. Her auto insurance premium is probably more than some people’s mortgage. The rich and famous have access to more expensive vehicles and have different insurance needs than most. For many, their wealth or fame creates challenges. It is important for wealthy individuals to have adequate insurance coverage to protect their assets. Auto insurance for the rich often covers more because the insured have specific and expensive insurance needs. A run of the mill, standard auto policy includes liability and comprehensive coverage. Auto insurance for wealthy individuals can provide coverage for individuals that have needs outside the norm. Independent insurance companies such as Premier Choice Auto Insurance specialize in finding the perfect insurer for your specific situation.
High wealth clients typically need more coverage and can afford higher deductibles.
Kylie Jenner has amassed a fleet of cars for a young woman her age. According to various news outlets at one time or another she has owned a Maybach, a Mercedes SUV, a Range Rover, a Ferrari 458 convertible, a Rolls Royce Ghost, and a Land Rover. Each of these vehicles have significant value meaning that their owner should have a larger than normal insurance policy. The policy needs to be adequate enough to repair or replace the vehicle in the event of an accident, whether caused by the owner or another driver. Other drivers on the road may not have enough insurance to cover replacement costs so it is important to have coverage for noninsured and underinsured drivers as well.
High earners such as Ms. Jenner can also afford higher than average deductibles. Auto insurance for wealthy individuals typically forgoes smaller claims, as the insured can afford to pay these out of pocket. Claims are reserved for higher ticket accidents or repairs.
Make sure you have the liability insurance you need.
If you have amassed a fortune, you need to protect your money against possible lawsuits. Some people have an incorrect belief that there is a cap on judgements. In the worst case scenario, you could be sued for tens or hundreds of millions of dollars. Carefully assess your risk and work with an experienced insurance agent to make sure you have the right amount of liability insurance.
An umbrella policy is a wise safeguard.
Umbrella insurance is a policy that kicks in on top of your auto and home insurance. In this day and age of litigation, being sued is a very real possibility. An umbrella policy gives you and your assets additional protection. A well-known, wealthy individual may be targeted or find themselves at the wrong end of a legitimate lawsuit. Every day incidents such as a dog bite or fender bender could open up your entire estate in the event of a lawsuit. Once you exhaust your insurance policy proceeds your personal assets may be on the table. Consult with an insurance agent to help determine an appropriate amount of umbrella insurance. You should consider your risk level tolerance and the estimated worth of your assets. Umbrella insurance is a wise investment, especially considering the cost of not having it.
Auto insurance for wealthy individuals may need to cover worldwide travel.
Whether you are a reality TV star, football player, or highly compensated motivational speaker the wealthy typically travel, and prefer to take personal vehicles and items. Standard insurance may not provide coverage for the transportation of your vehicle. If your car is damaged in transit your policy may not pay for repairs. It is important to work with an agent that understands your out of the ordinary needs and can match your lifestyle with a policy that provides adequate coverage.
Consider using an agreed upon value policy.
In the event of an accident, generally insurance companies will reimburse you the value of your vehicle at the time of the accident. With the high rate of depreciation, this means that the longer you own the car, the less it is worth and the less the insurance company has to pay. However, if you are a wealthy client you may be able to obtain an agreed upon value policy. With this type of policy a value of the vehicle is agreed upon by the insured and the insurance company in advance. If the vehicle is an accident, the agreed upon value is what is paid out.
Standard policies simply aren’t adequate.
If you are a wealthy individual, you need an auto insurance policy suited to you. Many auto insurers have specific niches they target with tailored policies. A mass produced policy is not going to provide you the amount of coverage you need or specialize in coverage such as foreign travel.
There are insurers that specifically work with high net worth individuals. These companies have long term expertise addressing the needs of the rich and famous. Chubb insurance is an example of a company that specializes in insuring unique items or classic cars. This company targets the wealthy and customizes policies to their needs. An independent insurance agent can review your circumstances and match you to the best insurer possible.
As a wealthy or famous individual, make sure that you have the protection that you need. Insurance can be a useful tool to protect your accumulated wealth and your vehicles. A skilled agent can review your existing coverage and help you make adjustments where needed.