Another Exciting Car Insurance Question!!! How do rich folk show financial responsibility with out insurance?

Question

do they have a "financial responsibility trust account" or something?

Answer 1

In states that allow it, they post a $100,000 bond (or the amount required) to the state. Usually it's an irrevocable letter of credit from a bank or other lending institute, or an insurance company bond (backed by the same irrevocable letter of credit).

But i have to tell you, I've never met a wealthy person who WANTED to do it, let alone has done it - because insurance is CHEAPER than tying up the $100,000 per vehicle.

Insurance is a financial tool.

Answer 2

Post a bond. But most rich folk wouln't do that as the interest lost on the bond would usually be more than the cost of an insurance policy.

If you're REALLY rich and have a D&B rating, the state MAY allow you to "self insure". Effectively you'd become your own insurance company.

Answer 3

You can go without ins, but you must show evidence of being "self insured."
This means satisfying the state ins dept you can afford to do so,and having to post a bond.

This is how large fleets go about it.
They carry a very high deductable, ( like $ 100,000.00) and are self-insured for anything under this figure.
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Not for the average person.

Answer 4

In California everyone ( except Paris Hilton ) must show proof of insurance before they can register the car.

Answer 5

They have to put X amount of $ in an account and have this verified before they are allowed to sign a waiver. I am pretty sure the amount changes from state to state.

Answer 6

I don't think you have to prove it,you just assume the risk