Most people see car insurance as a complete waste of money, hence they see no need to insure their cars even when it’s worth tens of thousands of dollars.
Have you ever imagined how much money celebrities splash on fancy cars and yet drive it around with no special bodyguard like top political officers do?
This is because they have a good car insurance cover that keeps their minds at rest even though they drive alone.
Hence, in cases of theft, damages, crashes and fire accident that takes their cars away from them, they will have to worry less and focus on other important stuffs.
This is because their insurance company will have to carry the cost depending on their insurance plan.
Top Reasons Why Most Celebrities In USA Take Car Insurance Cover For Their Luxurious Cars:
1. They Buy Highly Expensive Cars:
Celebrities are known to drive the most expensive cars because they can always afford it.
It’s common among sport stars, movie stars and music stars to drive the most expensive brands of cars.
Also, they have to always wear the impression that they are rich, famous and special anytime they are seen in public.
Since they use highly expensive cars, they insure them to save cost when repairing or replacing them.
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2. Luxury Cars Suffer Huge Depreciation In Value Compared To Low Budget Cars:
Since most celebrities drive expensive cars with huge depreciation margin, they insure them against unforseen possible damage.
Hence, they can afford to change their cars with the help of their insurance company.
For instance, if owner A purchases a car for $50,000 and it depreciates by 50% in 3 years, and owner B purchases another car for $5,000 under the same depreciation condition as owner A in 3 years.
After 3 years, owner A who purchased his car for $50,000 has lost more money compared to owner B who bought for $5,000.
By simple calculation, Owner A has lost $25,000 in 3 years while Owner B has lost only $2,500.
Hence, one benefit of car insurance is the ability to keep up with their luxury cars when replacing them through the help of insurance companies.
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3. Car Insurance Have The Tendency To Give High Resale Value To Cars:
Cars that are insured are usually well kept and maintained, hence they have a high resell value advantage.
This means a person can afford to buy a car for $50,000 and resell it after a few months for a little less.
Therefore, it’s still profitable to the owner.
In the real sense, most celebrities don’t drive their cars till it becomes completely worthless or become a headache for them.
Hence, they can afford to resell or flip their cars to get a new one with the help of their insurance company when it starts developing faults.
For instance, most celebrities today ride highly expensive electric cars such as Tesla cars.
I’ve actually made a prediction that within 30 years a majority of new cars made in the United States will be electric. And I don’t mean hybrid, I mean fully electric.
Elon Musk – CEO Tesla motors and product architect of Tesla.
4. Car Insurance Cover Helps Them Cover The Expenses Of High Repair Cost:
What it will take to repair an average car is lesser than the repair cost of an expensive and flashy one.
What am I trying to drive out here?
Instead of fixing a car which is already distorted in shape and beauty, they just opt for a new one.
Let us say they were only able to use that car for 6 month before the unfortunate scene occured.
Therefore, they will have to get some funding from their car insurance company when replacing it with a new one.
This is one huge advantage of car insurance.
5. Most Celebrities Don’t Drive Their Cars Alone:
Most celebrities drive with some company of friends.
They are usually in the midst of friends and convoy who drive with them.
Sometimes they might not be the one taking the steering and you can’t tell how other people might respond to driving flashy cars.
Such cars might get bashed and damaged in the process.
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6. They Use Cars Without So Much Pardon:
Most people who drive expensive cars don’t drive slow and never care to always check if anything might be wrong with their cars.
This is because they believe the cost of the car has covered so many inconveniences for them.
Hence, the way an average employee dries might be completely different from the way a rich celebrity sport, movie or music star drives.
Since they usually want to maintain a private scene in public, they might not take some breaks to stop their cars and check for oil and water level.
These are some minor agents that breaks down cars and knock down car engines.
7. Celebrities Insure Their Cars As A Safe Heaven In Case Of Bad Scenarios:
Car insurance gives people a sense of safety mentality when compared to a car without insurance cover.
Oh yes there are times when they attend night parties and would surely drive home a bit drunk even though driving drunk is a crime.
Some celebrities still fall victims to this act.
In other cases, they might get robbed and their cars might be stolen from them half way on the road.
Hence, should anyone also crush their cars, their is no need for much worries and fight since their insurance company will take responsibility for the damages.
8. They Have The Money:
Out of all the other reasons mentioned. Oh yes most celebrities are rich.
They have the money to buy any expensive car they wish to buy and insuring it with some dollars every month wouldn’t be a bad deal for them.
They have the money it takes to buy any insurance plan.
Additionally, they know their insurance company can always get their backs so they will never use an expensive ride without insurance.
Therefore, car insurance cover gives them a win-win advantage when driving expensive and flashy cars.
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