According to independent polls by two US-based pricing comparison websites, over half of all American drivers believe red cars cost extra to insure.
In a poll of 1,000 individuals done by InsuranceQuotes.com in August, it was discovered that 44% of respondents believed that driving a bright red automobile had an impact on their auto insurance premiums, with drivers between the ages of 18 and 29 more likely to have this opinion.
In contrast, a 2020 survey by Insure.com of 2,000 licenced drivers revealed that 46% believed red cars cost more to insure because they are more likely to get stopped for speeding. More than half of those that did, or 52%, were women, with the remaining 48% being males.
But is this widely held notion true or is it simply a myth? Here is what professionals have to say.
Are red cars more costly to insure?
In actuality, experts claim that insurance could care less what colour a car is.
According to InsuranceQuotes.com, “The notion that a car’s colour can affect your insurance rates isn’t always accurate.” Despite what many people think, an insurance premium for a red automobile won’t be higher. Generally speaking, you won’t pay more to insure your red automobile than any other colour.
According to Kristofer Kirchen, president of Advanced Insurance Managers, “the colour of your vehicle is not even a question on the insurance application and it is a non-factor.”
However, some colours increase the cost of purchasing an automobile, which might have an effect on insurance premiums.
White, black, blue, and red automobiles are often more expensive to acquire overall since they are extremely popular hues, according to InsuranceQuotes.com. However, car colour typically won’t affect your car insurance premiums. Popular automobile colours may cost more since there is more demand for them.
According to experts, a car’s custom paint work is the only other situation in which the colour of the automobile can have little influence on insurance costs.
The automobile journal Car and Drive said, “If you choose to modify the paint, such as through a custom paint job, you want to include this as part of your insurance coverage.” “Your insurer will assume that your car is in the same shape as when you bought it, so if you modify it with a custom paint job and want it to be covered in case of damage, let your insurer know.”
According to the article, “Insurers might provide specialised coverage for this aftermarket [modifications] known as custom parts and equipment coverage.” This broadens your coverage to include replacing or repairing any customised parts, including wheels, lighting, sound systems, and paint jobs.
What factors impact car insurance rates?
Every motorist has a certain set of dangers. The amount of automobile insurance a driver should pay is determined by a number of variables by insurers. These consist of:
Driving background
Poor driving records are seen by auto insurers as a sign that a driver is more likely to make a claim in the future. As a result, at-fault collisions can significantly raise rates. According to a recent survey by the financial services company Bankrate, drivers in California see the largest average yearly rate increases of any state—$1,436—following an accident for which they were at fault. Drivers in Los Angeles, on the other hand, see an average increase of $1,636 year after having an accident, the highest of any metro region examined for this research.
The study also discovered that of all instances, being pulled over for DUI increases premiums the most. According to the study, drivers with a DUI history spend $1,650 more year on full-coverage insurance than the national average.
Location
According to Bankrate, rather than the amount of money drivers pay on premiums, the real cost of vehicle insurance is determined by the proportion of their income that drivers set aside each year for this coverage. However, the firm used this metric to examine 2022 auto insurance rates in all zip codes and carriers across the nation’s 50 states to better illustrate the impact of premiums on drivers’ overall budgets. Average income between states varies significantly, frequently by up to tens of thousands of dollars.
The survey found that the average cost of auto insurance in the US consumes 2.57% of a driver’s yearly salary or $1,771 annually. Depending on the state they reside in, drivers spend much more or less than average, with the gap between the highest and least costly premiums coming to $2,120.
The brand and model of the car
The kind of car a person drives is one of the greatest variables influencing auto insurance premiums. Analyses conducted separately by insurance comparison websites The Zebra revealed that among all vehicle categories, vans had the lowest premiums at $1,655 annually, followed by pickups at $1,735 and SUVs at $1,952. Cars continue to be the most expensive vehicles to insure, with average yearly premiums of $2,454.
Maserati, an Italian luxury automobile maker, has the highest yearly premiums of any brand, coming in at $4,393. Fiat, a local brand, is at the other end of the range, with annual prices averaging $1,499.
The age of the car
According to Zebra’s study, newer automobiles are more expensive to fix or replace than older ones, especially if they come with high-tech equipment like blind-spot sensors and rearview cameras.
The company’s data showed that a 5-year-old vehicle’s insurance costs are around 27% lower than those of its brand-new equivalent. For instance, annual rates for a Honda Accord that is half a decade old cost $1,443, while those for a brand-new car cost $1,838.
The report stated, “Insurers also account for variations from one model year to the next.” A vehicle’s insurance premium may increase for certain model years if it is more likely to be involved in accidents, stolen from, or require expensive repairs.
Credit score
With the exception of California, Hawaii, Massachusetts, and Michigan, most state car insurance providers use credit-based insurance scores to determine premiums because they frequently believe that customers with high ratings tend to submit fewer claims than those with lower ratings.
According to research by Bankrate, drivers with good credit spend $1,146 less annually for vehicle insurance than those with bad credit. Drivers in Wisconsin saw the most rise of any state: $4,128 when their ratings drop from good to bad. On the opposite end of the scale, drivers in North Carolina only experienced a $351 increase in premiums under comparable conditions.
Age, gender, marital status, yearly mileage, policy types, and deductibles are other variables that directly affect vehicle insurance rates.
Where does the myth that red cars cost more to insure come from?
According to Car and Driver, facts explain the widespread belief that red cars cost extra to insure.
According to the magazine, “sports cars will have higher insurance rates because drivers tend to drive faster and have a higher chance of being in an accident.” “The typical sports car driver has a preference for red while shopping for a car. Many people believe that the colour of the automobile, not its actual design, is to blame for the higher rates because there are more red sports cars on the road and the likelihood that these sports vehicles will have higher rates.
So, who cares about car color?
According to Insurance.com, the driver is you. A survey conducted by a rate comparison website of 1,000 married people over the age of 25 revealed that nearly a fifth (19.5%) preferred black cars, followed by silver (18.5%), white (16.2%), and blue (12.5%). Red, which many people believed increased rates, came in fifth and was selected by 8.5% of respondents.
Nearly a third (31.5%) of those who chose a certain colour did so because they thought it was attractive. 10.2% of respondents said they picked the colour “because it wouldn’t show dirt,” while 25% said they had “no other choice.” The last two reasons on the list—”I look good in it” and “it blends in”—rounded out the top five reasons.