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Car insurance for wealthy drivers

Get enough coverage to protect your financial assets, not only your vehicles.


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If you have a high net worth, buying car insurance can be a different experience than for most people. You might need a policy with high liability limits that covers all of your assets in case of a lawsuit, or even an umbrella policy. And if you have a special luxury car you might want an agreed value policy.

Why do I need extra car insurance if I’m wealthy?

If you’re in a severe accident, the injured party will likely seek as much compensation as possible, which could include compensation for medical bills, lost wages and pain and suffering.

If your car insurance liability limits are too low to cover the other person’s injuries, court fees and any settlement, then you’ll be responsible for paying the difference with your own money or assets. Plus you might have a higher risk of a lawsuit if you drive a luxury car, which could be a target for insurance scammers.

Most standard insurance companies offer a maximum of $500,000 liability limits on their auto policies, with some offering up to $1 million or $10 million from some specialty insurers. If you need even higher limits, consider buying an umbrella policy, which would cover you up to $10 million.

What is an umbrella insurance policy?

A personal umbrella policy adds additional coverage to what you carry on your home and auto policies. The standard umbrella is $1 million in coverage, which means you’ll have an extra $1 million if your other insurance limits don’t fully cover the cost of the accident or lawsuit. Most insurance companies offer up to $5 million umbrella policies, but higher limits are available.

For example, if you have a $250,000 bodily injury liability limit on your auto policy and you were at fault for an accident over that limit, your $250,000 car insurance coverage would pay out first, and then you would have up to $1 million from your umbrella policy to cover the rest.

Personal umbrella policies typically cost between $150 and $300 a year, but could be more if you opt for higher limits, have young drivers on your policy, have several vehicles or own multiple properties. You’ll typically have to carry a minimum level of coverage on your home or auto policies to qualify for an umbrella policy.

Compare car insurance for wealthy drivers

Name Product Roadside assistance New car protection Accident forgiveness Safe driver discount Available states
All 50 states
Discover coverage that’s broader than competitors, valuable discounts up to 30% off and perks like shrinking deductibles that reward no claims.
All 50 states
Affordable car insurance with highly rated customer service. Only available to military members and veterans and their family.
All 50 states
Your dedicated agent can help you find the best savings with multiple discounts and rewards programs.
Liberty Mutual
All 50 states
Earn free accident forgiveness after five years claims-free and customize your policy anytime online at the tap of a button.
The AARP Auto Insurance Program from The Hartford
All 50 states
Enjoy low rates for mature drivers, plus freebies and AARP member perks like free replacement cost coverage. Only for drivers over age 50.
Pay only for the miles you drive, plus enjoy app services you won’t find everywhere like claims and car health updates.

Compare up to 4 providers

How much does car insurance cost for wealthy drivers?

The national average for car insurance in the US is around $1,300 a year. Your car insurance rates depend on many factors, such as:

  • The car you drive. Luxury cars typically cost well above this average and can be in the $3,000 to $5,000 annual range, depending on the type and value.
  • The coverage you need. If you’re looking to buy a $10-million auto policy with several luxury cars listed on it, you might pay several thousand dollars a year. You might also need to raise your maximum coverage limits if you want umbrella insurance.
  • Your job. If you work in a high-risk or stressful job or have a long commute, you can expect higher car insurance premiums based on your job.

How can I save on car insurance?

There’s a few things you can do to lower your auto premiums, even if you increase your liability limits.

  • Maximize discounts. Packaging your home and auto insurance with the same company usually earns you savings on both policies. You may also get discounts for having more than one vehicle, applying online, opting for paperless documents or paying your policy up front in full.
  • Look for low-mileage discounts. If you have multiple vehicles and one of them isn’t used much, try getting a quote from a company that offers a low-mileage discount or telematics program. This could be especially useful if you have a classic or luxury car that typically stays parked.
  • Raise your deductibles. Consider raising your deductible on both comprehensive and collision. You may be able to completely offset the cost of raising your liability limits.
  • Drop unnecessary coverage. Review your policy to see if there’s anything on it that you don’t need or already have coverage for. For example, you could drop rental car reimbursement if you have other cars you could rely on while yours is in the shop.

What should I watch out for as a wealthy driver?

As a wealthy driver you’ll want to be sure you have the proper insurance, here’s what to keep in mind:

  • Not protecting all your assets. It’s easy to assume you have adequate insurance limits. Take full stock of all your assets and consider adding enough insurance to cover it in full.
  • Actual cash value. If you have an expensive luxury car, you might want to buy an agreed value policy. Agreed value policies guarantee that you’ll receive the full amount that the car is worth, rather than the actual cash value, which uses depreciation.
  • Aftermarket modifications. If you’ve made any upgrades or improvements to your car and you don’t have an agreed value policy, these won’t be covered under your standard insurance policy. You can insure the full value of aftermarket mods and custom equipment through an add-on.
  • Expensive parts and labor. If you have an exotic foreign car, it might be difficult and expensive to get replacement parts for it. This leads to more expensive repairs and higher insurance rates.

Bottom line

Obtaining the proper insurance coverage when you’re wealthy includes having enough liability insurance to cover your assets. This could mean comparing specialty car insurance, an umbrella insurance policy or agreed value policies.

Compare your car insurance options to find one that’s best suited for you.

Common questions about car insurance for wealthy drivers

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