The Effect of the Color of Your Car on Your Car Insurance Premiums

Auto Insurance Basics, Finances, Health insurance basics, Insurance Advice

Is It true That a Red Sports Car Costs More to Insure Than a Black Sports Car?

Nope. The color of your car has nothing to do with the cost of insurance. Whether your car is red or any other color is not a determining factor in calculating your auto insurance rate.

Factors that do determine your insurance premium include:

  1. The year;
  2. The make;
  3. The model;
  4. The body style;
  5. The age of your vehicle;
  6. Your driving record;
  7. How often you drive your car; and
  8. The drivers listed on your policy.

In most cases, your insurance company doesn’t even know the color of the car you are driving. Insurance companies know your vehicle identification number (VIN), but the color of your car is not included in a VIN.

So Why the Connection?

The myth that red cars pay more for car insurance may be based on the premise that a red sports car is flashier than a black one and might attract the attention of local law enforcement if you’re driving a bit too fast. Some argue that red cars are more likely to be ticketed because of their arresting, bright color.

Others point out that because red cars have historically been associated with sports cars, speed racers, and higher accident rates, car insurers now penalize all red-car lovers everywhere due to statistical “facts.” However, getting speeding tickets almost certainly will increase your insurance costs. To date, no conclusive study has been done in the U.S. to prove or disprove any suppositions about car color and its effect on safety.

There are statistics that show that that red cars and flashy sports cars tend to get more tickets than other vehicles. However, that’s because those drivers are taking more chances behind the wheel than those who drive other colors, and they will pay more for car insurance because they will have more tickets on their driving records.  So, the determining factor here is not the color of the car, but the person’s driving record.

Red Cars More Expensive

Red cars do cost more to buy, but not necessarily to insure.  LeaseTrader.com recently analyzed the effect of color on only the price of cars. “We found the color red had the highest average monthly listing price for virtually all makes and models, roughly 9 percent higher than any other color,” says John Sternal, vice president of marketing and communications at LeaseTrader.com.

Custom Paint Job

The paint that affects your insurance rates is a custom paint job, but even that shouldn’t add too much to your premium and should only include a nominal fee.  The color of your car might even make it less likely to be stolen – in which case, a red car might even help you. Car makes that are frequently stolen cost more for comprehensive coverage.

 

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