Gianetta Palmer is a writer for CarInsurance101.com, copywriter, and essayist. Her work has appeared in EverydayHealth.com, Healthline, and The Dyrt Magazine. She is the author of Scrunchie-Fried and writes a lot about car insurance in her spare time.

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Melanie Musson is the fourth generation in her family to work in the insurance industry. She grew up with insurance talk as part of her everyday conversation and has studied to gain an in-depth knowledge of state-specific car insurance laws and dynamics as well as a broad understanding of how insurance fits into every person’s life, from budgets to coverage levels. She also specializes in automa...

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Reviewed by Melanie Musson
Published Insurance Expert

UPDATED: Jan 28, 2021

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Just What's Essential

  • Individuals with a higher-than-average income may pay lower car insurance rates.
  • Car insurance quotes are determined by the car you drive, driving record, credit history, and commute mileage (how much you drive).
  • Sports cars and luxury vehicles carry higher than average rates.

Car insurance for rich people is just as cheap as for any other blue-collar worker. People in a high-income bracket tend to have better credit — a factor car insurance companies take into consideration.

However, rich people are not exempt from costly auto insurance rates due to a bad driving record, age, or location. The idea of rich kid cars means expensive car insurance rates for rich people.

High-risk car insurance can drive up car insurance quotes for rich people and anyone else looking to get insured.

Compare car insurance rates for rich people and working people in the FREE online quote tool above. To learn how you can save money on car insurance per month, continue reading the guide.

Where can I find affordable car insurance for rich people?

A higher-than-average income doesn’t exclude you from finding affordable car insurance. It’s more cost-efficient to buy an auto insurance policy that has a small impact on your budget.

The first place you should search for cheap car insurance is a list of the best companies. You’d be surprised how much you can save.

As a high-earning individual, specific factors, such as your credit history, will work in your favor.

How come? According to Experian, insurers correlate good credit with low risk. Consumers with bad and fair credit are associated with high risk. Therefore, individuals with good credit pay cheaper rates.

Let’s look at how good credit can affect monthly car insurance rates.

Comparing Monthly Average Car Insurance Rates Based on Good Credit
Car Insurance CompaniesAverage Monthly Car Insurance RatesMonthly Car Insurance Rates Based on Good Credit
Allstate$408$322
American Family$287$224
Farmers$349$306
GEICO$268$203
Liberty Mutual$508$366
Nationwide$287$244
Progressive$337$302
State Farm$272$181
Travelers$370$338
USAA$212$152
Get Your Rates Quote Now

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You can save up to $100 on car insurance for having a good credit history. That’s not even counting the other discounts that you may be eligible for.

USAA car insurance policies are only available for veterans and their immediate families. However, GEICO, State Farm, and all other companies are available for everyone.

Check out the USAA car insurance review for more details.

Enter your ZIP code below to view companies that have cheap auto insurance rates.

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How does your driving record impact your car insurance rates?

Here’s where your car insurance rates can get tricky. If you’ve managed to keep a clean driving record, your car insurance rates will climb down even more.

Auto insurance providers will give defensive driver discounts and safe driver discounts to policyholders who have a clean driving record before buying a policy.

Maintaining a clean driving record while you have your car insurance policy brings rewards.

Let’s examine the average monthly auto insurance rates that are affected by a clean driving record.

Average Monthly Car Insurance Rates Based on a Clean Driving Record
Car Insurance CompaniesAverage Monthly Car Insurance Rates Based on a Clean Driving Record
Allstate$318
American Family$224
Farmers$288
GEICO$179
Liberty Mutual$398
Nationwide$229
Progressive$283
State Farm$235
Travelers$287
USAA$161
Get Your Rates Quote Now

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The lowest price may not be the best option. Compare the coverage options of each company and find the one the best meets your needs.

How do you save money using telematics?

What is telematics? In the car insurance industry, telematics is part of a usage-based car insurance program where an insurer tracks a customer’s driving habits using a Bluetooth beacon or a smartphone app.

The purpose of telematics is to charge customers based on how they drive or based on the number of miles they drive.

You won’t find usage-based auto insurance in some areas in the United States, but you can save money using telematics if you don’t drive your car that much.

Here’s a list of the most popular telematics programs and their savings.

Usage-Based Car Insurance Savings by Company
Car Insurance Company Usage-Based Insurance ProgramCar Insurance Savings
Allstate DrivewiseGet 10 to 25% Off
Esurance DriveSenseVaries
GEICO DriveEasyVaries
Liberty Mutual RightTrackSavings are between 5% and 30%
Metromile Car InsuranceVaries
Nationwide SmartRide40% Savings
Progressive SnapShotSave Up to $130
Root Car InsuranceVaries
State Farm Drive Safe & SaveGet Up to 15% Off

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Telematics is ideal for drivers who drive their cars on the weekend. In addition to a standard car insurance policy, you can add telematics to a second car to save money.

Three Reasons Why “Rich Cars” are Expensive to Insure

“Rich cars” is another way of saying luxury cars or sports cars. Both vehicle types are more expensive than your average sedan, truck, or SUV.

Acuras, Vipers, and Lamborghinis are examples of high-value cars with expensive car insurance rates.

But why are they so costly to insure? Let’s explore the reasons why in the subsections below.

Higher-Than-Average MSRP and Fair Market Value

Luxury cars and sports cars have MSRPs that are more expensive than most cars. According to Kelley Blue Book, MSRP stands for Manufacturer’s Suggested Retail Price.

Instead of a $20,000 price tag, luxury cars and sports cars are in the $80,000 to $1 million+ range. Even at the fair market value, rich vehicles are expensive.

Costly Car Repair Cost

Repair costs on rich vehicles are also higher than average. Since the value of these cars is so expensive, the parts can put a dent in your finances. Most high earners trade their vehicle into the dealership before that happens.

Maximized Coverage Levels

The car insurance minimum requirements may not cover the property damage if you get into an accident. To ensure you get the best coverage, you’ll need $100,000 in property damage liability coverage.

A car with a cheaper value will be more affordable, and a lower coverage limit would be acceptable.

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Car Insurance for Rich People: The Bottom Line

When you buy car insurance for rich people, it’s no different than buying car insurance for anyone else.

Affordable car insurance is easy to obtain based on factors such as good credit, a clean driving record, a modest vehicle with safety features, and low car use.

Enter your ZIP code in the FREE comparison tool below to find car insurance for rich people and working people in your area.