Does car color really affect car insurance rates?
Does car color affect your insurance rates? No. So why do so many people insist that certain colors of cars are more expensive to insure? There are several reasons this myth continues to persist among people who should know better, and there are actually some facts which do contribute to this belief. However, a misunderstanding of how insurance rates are figured is at the bottom of the “red is the most expensive color” theory.
Red cars often cost more to purchase than other colors
All you have to do to prove this is true is look at industry figures for red cars versus blue, black, white, or silver. Red cars uniformly have higher price tags, followed by blue and white, while black and silver are relatively reasonably priced. However, this has nothing to do with the cost to insure them – and insurance companies generally do not even ask what color a car is when you apply for insurance. Instead, they want to know the year, make, model, and other pertinent information. Still, because red cars cost more overall to buy, there is an underlying assumption that they will also cost more to insure.
A second fact which contributes to the higher-insurance myth is that red cars tend to be bought, driven, and maintained by younger drivers.
For many, red is a flashy color representing speed and daring. Young drivers of red sports cars simply get pulled over more often than any other group, and are more likely to get a ticket. Therefore, as a group, young red car drivers may pay more in insurance costs—not because their cars are red, but because they are more likely to be pulled over and ticketed. An older driver with a red car will probably not have this issue, nor will a young driver who has a perfect driving record.
A third fact which leads people to believe that various colors cost more to insure has to do with the numbers of cars on the road which are a given color.
In the United States, silver has become one of the most popular and cheapest car colors; since there are more drivers of silver cars, the “average” premium price for insurance will go down as the numbers are spread over a larger group. Fewer people by red or blue cars than white, silver, or black, so it is likely that the numbers for car insurance seem a bit overinflated for these colors.
Finally, there is an indirect link to color and personality
People who enjoy vibrant, bright colors tend to enjoy risk-taking more, while those who choose muted or sober colors are often more cautious. If a person routinely takes more risks, drives faster, and is more aggressive with his or her driving, it stands to reason that this person will end up with higher insurance premiums due to car accidents and speeding tickets. If these more aggressive drivers as a group tend to buy brightly-colored cars, it is easy to see why people believe there is a link between car color and higher insurance rates.
While no insurance company looks at the color of your car to determine your rates, they do routinely look at your age, driving record, location, and other identifying information to determine how to price your policies. You can take advantage of numerous discounts to lower your overall cost; if you qualify for good driver discounts, you will pay less, so keep your record clean. You can also lower the cost of your car insurance by attending defensive driving classes, or mature driving classes if you are a senior citizen. You can also adjust your deductible amounts and coverage limits; talk with your agent about what is best for your particular situation.
All in all, it is possible to enjoy lower insurance premiums by remaining a careful driver and by using some smart tips to keep your costs down – no matter what color car your drive!