Fact or Myth?
Do drivers of red cars really pay more for auto insurance?
It doesn’t matter if your car is red, green or purple. What does matter is the type of car you select. Before you buy a new or used car, check into insurance costs. Auto insurance premiums are based on make, model, body type, engine size, the age of the vehicle, age of the driver, driving record and credit history. They are also based, in part, on the car’s sticker price, the cost to repair it, its overall safety record, and the likelihood of theft. Many insurers offer discounts for features that reduce the risk of injuries or theft. These include daytime running lights and anti-theft devices.
“For years there has been this notion that color plays a significant part in calculating insurance premium costs, many people believing that red cars cost more to insure because they’re linked to aggressive driving or speeding,” said Loretta Worters, vice president with the I.I.I. “The fact is, insurers have no interest in the color of a car, but they are interested in knowing if you have had any previous car accidents, the number of miles you drive annually and where you live,” she explained.
Source: Insurance Information Institute