Do Red Cars Cost More to Insure?

Have you ever wondered if the color of your vehicle is a determining factor in your car insurance rates? An urban legend that has been around for some time is that red cars tend to attract more speeding tickets, and therefore command higher-than-average insurance rates. Insurance companies do consider several different factors when calculating your car insurance premium, but the color of your car isn't one of them.

Here are some important things you need to know about how your car insurance rates are calculated:

1. The type of vehicle you drive can drive up insurance rates. If you're driving a flashy red sports car, your insurance could be higher than the average because the car could be an easy target for theft. Sports cars are generally more expensive to insure because they are often the target of break-ins and vandalism, and may also have a higher chance of getting into an accident. The color of your sports car has nothing to do with the calculation.

2. Your driving history and credit rating are taken into consideration. Most car insurance providers do review your credit history, as well as your driving track record. They want to know whether you are a "high risk" or "low risk" driver, and will review your credit report and credit score, as well as your driving history. Make sure you have taken a good look at your credit report yourself before applying for insurance coverage. Your credit report needs to be as accurate as possible, and free of any errors.

3. Too many speeding tickets could mean higher insurance rates. If you've managed to collect several speeding tickets over the past few years - in a red vehicle or otherwise -- your insurance rates will probably be higher than the average for that same vehicle. Having too many speeding tickets can put you in the "high risk" category by most insurance companies, and this type of driving track record can make it harder to get a low premium no matter which insurance provider you do business with.

4. You need to report the primary use of your vehicle accurately. If you've purchased a red sports car for recreational purposes or a red sedan to use as a family vehicle, make sure you let the insurance company know what the purpose of the vehicle is to get the best rates. The number of miles you anticipate driving over the course of the year, and the primary use of the vehicle, are also determining factors for your insurance rates. Make sure you report the use of the vehicle accurately to get the best rates.

5. Maintain a good driving record. Even if you are driving a red car and have a bad speeding habit, do what you can to maintain a clean driving record. Speeding tickets and accidents will increase your premium, regardless of the color of the car you drive. If driving a red car is to blame for your bad habits, consider switching to a different vehicle until you can restore your driving record.

Sources:
CarInsurance.com
CarInsuranceRates.com: Your Job and Education Level May Affect Your Car Insurance Rates
Snopes.com: Red Cars
CarInsuranceRates.com: Car Insurance Urban Legends