Factors Do Affect Your Insurance Rate
In conclusion, car color does not affect your auto insurance rates, but many factors can raise your policy premiums. Your age, years of driving experience, gender, driving record, make and model of the vehicle and vehicle options are all more important than the color. These variables can increase or decrease the rates of your auto insurance.
However, car color can indirectly affect those auto premiums, but the insurance company does not factor it. If the color changes the cars value, you may see a rise in your rates. Those custom paint jobs and equipment will increase your premiums. The market value and likelihood of incidents also determine your insurance cost. The bottom line is, if you want that shiny convertible or sports car, your insurance company really doesnt care if it is red, black, or green. Does car color affect insurance rates? The answer is always a definitive no. You can choose the right color that matches your personal style without worrying about an increase in your insurance rates.
Do Red Cars Cost More To Insure
You may have heard red cars are more expensive to insure. But, according to the Insurance Information Institute , the color of the car you drive does not affect the price of auto insurance. Here are some of the factors that help determine your auto premium and what to look for when shopping for car insurance.
How Often Do Insurers Check Your Driving Record
Getting a speeding ticket or other type of traffic violation can lead to a higher auto insurance premium, but not necessarily immediately. Carriers usually only check your driving record when you get an insurance quote, apply for a policy, renew a policy, add a driver to your policy, or change your coverage.
Typically, state agencies issue driving records that span the last three years. When they request a report, insurance companies look for issues such as collisions, traffic violations, traffic-related convictions, and failure to appear in court.
You May Like: Tooth Implant Cost With Insurance
Why Do People Assume That A Vehicles Color Affects Auto Insurance Rates
One of the questions many people have is if there is no direct correlation between color and the cost of insurance, then why do so many licensed drivers believe that it is more expensive to insure a red car? So, the answer could be that, on average red cars cost more to purchase, i.e., they are expensive.
According to sales data from various car companies across the US, black, white, red, and blue happen to be the most expensive car colors mainly because they are in high demand. Popular colors arent cheap because dealers dont have to negotiate to sell a vehicle, owing to their high demand. Dealers will also sell these color vehicles for more money, and so the more expensive a vehicle, the more it costs to insure. Looked at in another way, your vehicles color could mean you pay more for insurance because it costs more. In practice, color does not impact the vehicles value enough for auto insurance premium to be noticeably higher.
Regardless of what you may have heard about the color of your vehicle, the premiums for more family-oriented vehicles are lower. Luxury or sports class vehicles are more expensive, and hence they cost more to insure on average regardless of the color.
The Wrong Info May Have You Seeing Red
However, the popularity of red doesnt translate into higher auto insurance rates.
Its a myth that red cars cost more to insure, says Jerry Becerra, president of Barbary Insurance Brokerage in San Francisco, who writes car insurance policies with numerous insurance companies, including Safeco, Travelers, and Progressive. None of the insurance companies I work with ever ask for the color of the vehicle when rating coverage.
However, while the color of the vehicle does not directly affect auto insurance rates, Becerra says it may have an indirect effect.
Do red cars get pulled over more? Statistics show that red cars get stopped for traffic violations more than other vehicles. With more tickets on their driving records, drivers of red cars are more likely to pay higher rates for red car insurance coverage. Its best to compare multiple insurance quotes.
A 1990 survey by the St. Petersburg Times found color does matter. White cars, which accounted for 25 percent of the cars on the road, were issued 19 percent of speeding tickets. By contrast, red cars made up 14 percent of those on the road but represented 16 percent of speeding tickets.
Statistics also show color plays a role in crash rates, yet red isnt the most dangerous color on the road.
Although color really doesnt affect your car insurance rates at the end of the day Becerra says these factors do:
- Driving record. A history of traffic tickets or wrecks will send your auto insurance uphill.
You May Like: Average Monthly Car Insurance Payment
The Arguments For And Against Red Car Insurance
There are a few reasons why red cars typically cost more to insure than other colors. Firstly, statistics show that crashes involving red cars are more likely to result in serious injury or death. Additionally, insurance companies take into account the potential for theft and vandalism when pricing policies for these vehicles. Finally, insurers often charge higher rates for risks associated with red cars, such as claims from minor collisions.Against this reasoning, some people argue that there is no evidence to support the notion that red cars are more risky than other colors. Furthermore, it is worth noting that not all red cars are expensive to insure some models cost less than others. Ultimately, it comes down to each individuals individual needs and preferences when choosing car insurance.
Red Cars Cost More To Insure
sirtravelalot / Shutterstock
Red cars do not cost more to insure. Whether your car is red, silver, black or yellow, the truth is that insurers don’t take your car’s color into account when determining your insurance rate since providers consider your car’s made, model and year.
The price of insurance premiums depends on factors unrelated to car color. They focus on the likelihood you will file a claim. These are a few factors insurers consider:
- The make, model and year of your car
- Your driving record
- Your insurance history
Sports cars and electric car models can be much more expensive to insure than the average car, but it’s rarely due to color. Instead, it’s most likely the car itself that you may see a slight increase in your premiums. Insurers take into consideration the type of car you drive.
In addition, owning a red car shouldn’t influence the number of tickets you get or increase the likelihood of accidents. But if you do have a high number of tickets and accidents, you may see an increase in your insurance rates.
Don’t Miss: Main Street America Insurance Phone Number
What Color Cars Have The Highest Insurance
Red cars have a reputation for being more expensive to insure. We have run into many people who avoid buying a red car for instance, even though they love the color because they imagine that it would be more expensive to insure. However, that isnt the case but ask any insurance company and they will deny it.
Car color does not have an effect on insurance rates. Whether you have a black, yellow, green or any other color car, be assured that you will not have to pay more for them. Similarly, some colors like white or black arent cheaper to insure. Most times, car insurance companies dont even know what color car you own. Your vehicles VIN or Vehicle Identification Number is all that insurers have, which does not mention the color. The VIN identifies other vehicle information like the year, make, model, body type, etc.
What does affect your car insurance rates is how safely you drive , the type of vehicle you own, and a few other factors, of which color isnt one. However, color can be a factor if your vehicle has a custom paint job.
The Myth Of Auto Insurance For A Red Car
Updated on Monday, October 5 2020 | 0 min. read| by Aaron Besson
There is a rumor that red cars have higher insurance costs than cars of another color. But that’s not actually the case.
At some point in time, a myth started going around that red cars cost more to insure. There is no data to support this. Color has no impact on your car insurance rates, and red cars do not have higher insurance rates.
There are factors that affect the auto insurance rates of red cars, but theyre the same factors that affect the premiums of cars of any color. The make, model and year of your car, and your driving and claims history have a much greater effect on your auto insurance premium than the color of your car. This article will go over:
Recommended Reading: Does Any Pet Insurance Cover Pre Existing Conditions
How Do You The Driver Matter
- While vehicle color doesnt factor into car insurance pricing, one could argue that most sports cars happen to be red. Its a pretty common color.
- Sports cars are generally the most expensive vehicles to own, which means the associated car insurance premium could be higher, especially if theyre being driven by more aggressive drivers.
Weve already discussed physical damage, but what about liability insurance?
Well, color still has nothing to do with your final insurance premium, but the symbol, or make, model and year, are a factor here as well.
Unlike the physical damage coverage, which is based mostly on the car itself, liability insurance rating focuses on the driver of the vehicle. This is where you as the driver come in.
The same car, a Mustang for example, driven by a 16 year old, would cost substantially more to insure for liability than if driven by a 55-year old. Much more so if were talking about a male teenager. Not to mention the driving record of said driver. If youre a teenager who has already been in a few accidents, youre going to be facing some seriously high individual rates.
Tickets And The Insurance Company
When an insurer looks at your driving record to determine your rates, they want to know whether you are a high-risk driver. Just one speeding ticket can raise your rates as much as 15 percent. Two tickets can raise your rates by as much as 40 percent. That means tickets do have an impact on rates, but only for the driver who got the ticket. Claims are a bigger factor to insurance companies as they cost the company money. Cars with higher frequencies of claims or higher payouts than other vehicles will be rated higher. In those cases, higher rates are paid no matter your cars color. In other words, if you are buying a Corvette, your rate will be the same no matter if the car is red or black.
Don’t Miss: Insurance Not Paying Enough For Totaled Car
Am I More Likely To Get Pulled Over If I Drive A Red Car
Also no. On the one hand, were happy to put your mind at easethere isnt conclusive evidence to back up the myth that you have a higher chance of getting pulled over based on the color of your car. But if youre still skeptical and think that youre more likely to be targeted for driving a red car, several sources like the National Motorists Association and Forbessuggest that actually white cars get pulled over the most.
On the other hand, we dont condone speeding or blowing through a stop sign, no matter the car color. If youre worried that youll get caught red-handed on a traffic violation, the safest bet is to focus more on your driving behavior and less on the paint job.
What Factors Do Impact My Auto Insurance Price
Now that weve set the record straight about a car colors impact on auto insurance rates, you might be wonderingwhat does actually matter when calculating my car policy price?
Basically, car insurance premiums are based on a lot of factors. A main point of interest is not the color of your vehicle, but rather its make, model, and year. Certain car models can be linked with higher insurance costs, like a Tesla Model S .
Your insurance provider can also flag various aspects about your car and driving habits and up your premium accordingly. These could be things likeyou have a vehicle type with advanced safety features that are expensive to repair, or your car is at higher risk for theft in the area that youre regularly driving or parking, or you have a lengthy history of car insurance claims.
Lemonade Car puts an emphasis on your actual driving behavior, driving record history, and the number of miles you drive when determining how much you pay for your auto insurance. If youre red-y to look under the hood of what goes into an auto insurance premium, you can learn all about how Lemonade Car prices policies.
You May Like: Car Insurance Types Of Coverage
The Age And Driving Record Of The Driver
The age and driving record of a driver can have a significant impact on the cost of car insurance. In general, younger drivers and drivers with poor driving records are considered to be a higher risk by insurers, which can increase the cost of their insurance.
This is because younger drivers and drivers with a poor driving records are more likely to be involved in accidents, which can create a financial liability for the insurer. As a result, these drivers may be charged higher premiums to compensate for the added risk.
On the other hand, older drivers and drivers with good driving records are considered to be lower risk and may be eligible for lower insurance premiums.
Compare Auto Insurance Rates
Save on auto insurance with quotes from trusted providers like:
Drivers switch & save an average of $750+/year
Are you overpaying for auto insurance?
Coverage.com, LLC is a licensed insurance producer . Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
Recommended Reading: How Much For Braces Without Insurance
Do Drivers Of Red Cars Really Pay More For Auto Insurance
If you own a red car, will you pay more for auto insurance?
Forty-four percent of Americans seem to think so, according to a study by insuranceQuotes.com, an online insurance comparison site.
Insurance companies will consider a myriad of factors in rate calculations, but color is not one of them.
“Color has nothing to do with rates,” Loretta Worters, vice president of communications for the Insurance Information Institute, told CNBC. “I guess that myth just keeps perpetuating.”
In fact, some insurance agencies won’t even ask you for the color of your car when you apply for a quote.
“A red car won’t cost you more than a green, yellow, black or blue car. Insurers are interested in the year, make, model, body type, engine size and age of your vehicle. How you’re perceived based on the color of your car is another matter,” according to Geico.
Still, 53 percent of millennials believe this myth to be true. The same can be said of 45 percent of college graduates and 42 percent of Americans with an annual household income of $75,000 or more.
“These results indicate that millions of Americans need a refresher on what insurance does and does not cover,” Laura Adams, insuranceQuotes.com’s senior analyst, said in a statement.
This isn’t the only myth circulating about car insurance either.
In addition, 17 percent of drivers in the United States are unaware that their location can be a huge factor in the rates that they will pay.
+25 Why Do Red Cars Have Higher Insurance References
+25 Why Do Red Cars Have Higher Insurance References. Youve likely heard that red cars will have higher insurance premiums than cars of other colours. Insurance companies consider sports cars to pose a greater risk because of their high cost, exclusive parts, and fast engines.
The more the value, the more will be the insurance premium. Learn the truth behind the myth of red cars costing more to insure and what factors actually help determine the price you pay for car insurance. Hence an inexperienced driver or a driver with a poor record will raise the.
No, red cars do not have more expensive car insurance. In fact, insurance companies dont consider your vehicles color when.
To the amusement of insurance agents and traffic officers all over the country, many people are under the belief that driving a particular color of car makes them pay higher insurance rates or more likely to be stopped for minor infringements. i guess that myth just keeps perpetuating..
To the amusement of insurance agents and traffic officers all over the country, many people are under the belief that driving a particular color of car makes them pay higher insurance rates or more likely to be stopped for minor infringements. For the most part, no, red cars dont cost more than comparable cars of other colors.
Source: www.readersdigest.caSource: phoenixmorningnews.blogspot.com
Don’t Miss: Is Comprehensive Insurance Full Coverage
Do Colors Matter For Insurance
Does car color affect insurance rates? The color of your car doesn’t affect your insurance rate. Instead, your insurance company uses other information, like your car’s age, location, usage, and your driving record, to help determine insurance rates. Learn more about the cost factors that impact rates.