How Celebrities Purchase Auto Insurance for Their Cars (2024)

As Americans, fascination with celebrity life is part of our culture. It is no wonder, then, that we are often interested in not only the most salacious aspects of celebrities’ lives but also the most mundane.

Many people wonder how celebrities purchase car insurance, and if it is fundamentally different from how the rest of us do.

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Actually, how celebrities purchase car insurance is much the same as anyone else. Their cars may be more expensive and fancier, and their accidents are more newsworthy.

However, at the end of the day, car insurance policies and the purchase process are largely the same as any other American.

Why Celebrities Need Auto Insurance

Having car insurance is mandatory for all drivers, and this applies to celebrities as well as the rest of us.

It is against the law in all states to operate a motor vehicle without insurance coverage. In addition, many states have minimum coverage requirements that must be met by all drivers.

Car insurance helps protect both the driver and others involved (such as other drivers, passengers, and pedestrians) in the event of a collision.

It also protects the owner of a vehicle if the vehicle is stolen. Without car insurance, many people probably couldn’t afford the cost of repairs or replacing a vehicle.

Although celebrities may seem better able to afford vehicle-related expenses, car insurance is especially important for them.

Because celebrities often drive very rare or expensive cars, the cost of repairing or replacing them can be very high. Car insurance provides protection from these costs.

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Types of Cars Driven By Celebrities

Celebrities drive some of the most envied vehicles on the planet. Often, the flashiest, rarest, and most expensive cars around are driven by celebrities. However, there is a

However, there is a downside to this- celebrities are often paying double or even triple the average car insurance rate because of their expensive vehicles.

For example, Lindsay Lohan is one of many celebrities that drive a Mercedes SL65 convertible. This vehicle alone would be very expensive to insure because it is so valuable.

The average cost of insuring the car is more than $3500 per year. In fact, the New York Times has named this car 2011’s most expensive vehicle to insure.

However, it’s almost certain that Lohan would pay much more. Because she’s had so many accidents, she would have a hard time securing a traditional insurance policy.

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Most insurers probably would decline to offer her a policy because she has such a poor driving record. In this case, her only option might be a high-cost insurance policy specifically designed for very high-risk drivers.

The Cadillac Escalade is a car model that is often associated with celebrities.In fact, the Escalade is driven by some of the best-known athletes and Hollywood figures including Kobe Bryant, David Beckham, Dennis Quaid, and Teri Hatcher.

The Escalade is also a fairly expensive car to insure because it is expensive and it is frequently stolen or broken into.

Average insurance costs for a 2011 Cadillac Escalade are around $2000, according to Automobile Magazine. Of course, this is for the base model of the car. The tricked-out versions that celebrities buy would likely cost much more to insure, especially if they have been customized.

The high-end Mercedes G Wagon is another vehicle that is popular with celebrities, especially young starlets. Miley Cyrus, Demi Lovato, Hillary Duff, and Britney Spears all drive this model.

With a sticker price over $100,000, this car is also expensive to insure, with costs around $3,200.

Types of Auto Insurance Celebrities Buy

Celebrities buy auto insurance just like the rest of us, although they may pay more due to their expensive vehicles.

Celebrities are sure to buy collision and liability coverage, which are the most common and in addition to the minimum coverage mandated by law.

The guidelines for minimum coverage are specified by the California Department of Motor Vehicles.

Celebrities are also likely to carry uninsured/underinsured motorist coverage and personal injury protection insurance.

These policies provide coverage if the driver is hit by a motorist without adequate coverage or if the driver or a passenger requires medical treatment as a result of an automobile accident.

Besides these common coverage types, celebrities may have additional insurance add-ons or special types of insurance policies.

These are specific to the lifestyle that the celebrity lives.

For example, celebrities often have valuable customizations to their vehicles, or they may often have high value items in their vehicles (such as their haul from a Rodeo Drive shopping spree).

This leaves their vehicle more susceptible to significant losses from theft.

In order to protect against this, many celebrities may carry additional riders on their policy to cover items in the vehicle up to a very high amount, such as $100,000.

Celebrities also may have to take out a non-traditional auto insurance policy because of factors related to their vehicles or their driving records.

Non-traditional auto insurance policies are used when a driver or a vehicle does not meet the requirements for coverage by an ordinary auto insurance policy.

This applies to extraordinarily high-risk drivers, such as Lindsay Lohan and Britney Spears.

With a history of multiple accidents and driving records that include speeding tickets and DUIs, these ladies statistically pose too large of a risk for most auto insurance companies to insure.

Instead, they will likely have to pay incredibly high rates for a special high-risk driver policy.

Other celebrities, such as Kim Kardashian, may have to get a special policy because of unusual vehicles. Kim drives a customized Bentley that was made specifically for her.

Because the car is one of a kind, it would not fall under normal auto insurance industry parameters for coverage. Kim likely has a special rare or exotic vehicle plan that is tailored to her needs.

How Celebrities Purchase Their Auto Insurance

While there may be some differences in the types of policies and coverage levels, at the end of the day the way that celebrities purchase auto insurance is much like you and I.

Really, the only difference is that they may have a personal assistant handling the process for them!

Just like the rest of us, celebrities can buy auto insurance online, on the phone, or through an independent insurance agent.

However, if a celebrity has a specialty vehicle or a very expensive car, they may have a hard time getting an accurate insurance quote online.

In such a case, they are better off speaking directly with an insurance agent or a representative of the insurance company.

Using an independent insurance agent may be especially valuable if the celebrity is looking for an unusual type of policy, such as additional coverage for high-end modifications to the vehicle.

The agent will be able to work directly with multiple insurers to find the best and most appropriate policy for the specific situation.

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The Car Insurance Companies That Celebrities Use

You probably won’t find a lot of celebrities that are buying discount auto insurance. The truth is, many celebrities get their auto insurance from high-end providers that specifically cater to affluent clientele.

In fact, a celebrity may not even be able to get a policy from a mainstream company like Geico or Allstate. This is dependent on the individual and the type of car that they drive.

If the car is very rare, exotic, or expensive, traditional insurers may not have the coverage to handle it.

A celebrity is more likely to use a smaller, boutique insurance agency that specializes in insuring rare, exotic, and expensive vehicles.

Some of the best known of these companies are Hagarty Insurance and Grundy Insurance Company.

While these policies are certainly very expensive, they are also designed specifically for the type of vehicle that the celebrity is driving.

This means that in the event of an accident or theft, the celebrity is less likely to have a hard time processing the claim.

Buying Auto Insurance like a Celebrity

Buying auto insurance isn’t one of the most glamorous things that celebrities do, but it is a necessity!

Celebrities need to make sure that their vehicles are covered and that they are meeting all legal requirements and conditions for insurance in the states where they live.

They also need to ensure that they have appropriate coverage for their vehicle and its contents.

While you may not have a personal assistant to help you with this task, it is important to take the same steps to make sure that you and your vehicle are adequately covered with an appropriate auto insurance policy.

Securing proper car insurance is not only a legal requirement but a smart and responsible move for your financial health.

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