It’s a common myth that owning a red car could affect your auto insurance rates. Whether this is true or not, there are several other factors auto insurance companies consider when determining insurance rates for car owners. In this article, we will explore why the color of your car isn’t nearly as important as other factors, and how your insurance rates are determined.
Auto insurance companies primarily base their insurance rates on risk. They calculate this risk based on factors such as the type of car you drive, your driving record, your age, and your location. While car color might influence your insurance rate in a very insignificant way, it isn’t considered to be an important factor when insurance companies determine your premium.
Several studies have shown that the color of your car doesn’t affect your insurance rates. However, some people still believe owning a red car will increase their insurance rates. This notion is entirely baseless because insurance companies don’t care about the color of your car.
One reason why people think owning a red car may affect insurance rates is because of the stereotype attached to it. In movies and TV shows, sports cars are often shown in red, and these cars are typically considered more dangerous to drive. However, those cars’ danger may have more to do with speed than the color of the vehicle.
Insurance companies focus on the car’s make and model as well as the driver’s history. For example, drivers who own a sports car or luxury car with high engines might be seen as higher risks. Exotic and high-end cars are more expensive to insure because they cost more to replace, and parts are more expensive. In contrast, drivers who own a more affordable car, such as a Honda or Toyota, have less expensive premiums.
The driver’s record is another important factor. Drivers who have a clean driving record with no violations, tickets, and accidents are cheaper to insure. Accidents happen, and there’s no accounting for them, but drivers with a history of crashes or traffic violations are seen as riskier to insure. Also, a driver can take a defensive driving course to reduce the points on their driving record.
Age and location are also factors that can determine your insurance rates. You are more likely to pay higher premiums if you are a new or young driver. The same goes for those living in high-risk areas, such as cities with heavy traffic or high crime rates.
Finally, defensive driving can impact your rates, which includes having safety features on the car or wearing a seatbelt. Features such as anti-lock brakes, automatic seat belts, and airbags can make your car safer and reduce your risk, which can mean lower premiums.
In conclusion, the color of your car is not a crucial factor when determining your insurance rate. Insurance companies focus on more important factors like the car’s make, model, and age, the driver’s record, location, and safety features. While color might have some impact, the car’s overall safety features, driving record, and location are more important in determining your insurance rate.
That said, having a bright red car is not a problem when it comes to insuring your vehicle. But choosing safety features and having a great driving record will lower the insurance rate significantly.