2007-03-09 01:57:25 · 11 answers · asked by David MW 1 in Business & Finance ➔ Insurance
They do if they don't want to lose everything they own. Poor people can afford to go without auto insurance easier than rich people can. If I'm Bill Gates and I cause an accident where someone is badly injured, I'm going to get sued and end up paying out a ton of money. If I'm Joe Schmoe with no assets, little income, and I cause an accident and get sued, there's nothing for them to get as I have nothing. They can get all the judgments in the world against me bu I have no assets to attach and no way to pay them. Bill Gates, on the other hand, would have assets to attach.
2007-03-09 02:36:19 · answer #1 · answered by Faye H 6 · 0⤊ 0⤋
There are many states that don't require you to carry insurance.. but you have to prove financial responsibility.
Most rich people carry insurance as it is much wiser than taking on all that risk themselves.
Some states allow you to only prove financial responsibility. That means that you have to prove that you have enough money set aside to meet the minimum liability limits in your state.
There are very few people that actually do this though as most rich peole would rather pay an insurance company to take on the liability.
So short answer, Yes, rich people carry insuarnce, very high limits of insurance, so that they stay rich if the ever get in an accident.
2007-03-09 10:19:05 · answer #2 · answered by NY1Krr 4 · 0⤊ 0⤋
Yes. Of course, they can afford to replace/repair the car, but insurance is a small fraction of the car's value and is good to have.
Also, there's liability. Too many people try to pick rich people's pockets. If they have an accident, even if it's the other person's fault, they might be sued just because they have resources and the other person doesn't.
2007-03-09 10:01:57 · answer #3 · answered by Maryfrances 5 · 0⤊ 0⤋
not sure what it's called, but my dad said that some states allow ppl to get around insurance by having a bank account with some amount of money in it [say $10-20k], reserved for the specific purpose of an even of an accident.
I'm not that rich, though! But I've thought about that scenario, myself. Paying insurance sucks, I know.
2007-03-09 10:00:42 · answer #4 · answered by sisofphil 2 · 0⤊ 0⤋
Of course they do. They wouldn't be rich if they didn't protect their investments. Additionally, most states require auto insurance regardless of income level.
2007-03-09 10:00:43 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Of course they do. Insurance is a financial tool. Rich people don't stay rich very long if they don't use financial tools.
2007-03-09 11:48:37 · answer #6 · answered by Anonymous 7 · 0⤊ 1⤋
yeah, cause liability is mandatory in all states, the only thing is, they may not carry full coverage on their new bmw, cause if something happens, they can jus go buy another one
2007-03-09 10:05:03 · answer #7 · answered by selina 2 · 0⤊ 0⤋
YEP, and they carry very high limits and a PUP policy as well.
2007-03-09 22:44:55 · answer #8 · answered by bundysmom 6 · 0⤊ 0⤋
most states require it by law.
2007-03-09 10:00:14 · answer #9 · answered by INDUSTRYkurt 3 · 0⤊ 0⤋
If it is mandatory by law, then yes they do.
2007-03-09 10:00:31 · answer #10 · answered by Ted 6 · 0⤊ 0⤋