Does the Color of My Car Affect Insurance Rates?

If you are looking to buy a new or used car very soon, you may have a certain car color in mind. You may also have received advice from family and friends about what car color to buy or not buy in order to obtain the best insurance rates. The reason has to do with the popular perception that given car colors are more likely to be or not to be stolen, get into accidents and receive traffic violations. Common car colors that people may advise you against purchasing are the following:

Red and yellow (more tickets and speeding tickets)
Blue (more traffic accidents)
Black (more likely to be stolen)

Conversely, many people believe that car colors like white and gray are less likely to get into traffic accidents and to be ticketed. Based on this "information" you may be advised to purchase a car of a neutral or metallic color. However, can this information be proved statistically?

While car insurance companies do take a lot of information into account when providing you with a car insurance quote, your car color is not part of that information. Instead, insurance companies assess your age, the type of car being insured (make, model and year), your driving record and your insurance claim history. In some states, your credit history is also used to calculate your car insurance rate.

Statistically, it can be proven that young age correlates with an increased number of traffic accidents and violations. As a result, teenagers and young adults are very likely to receive a higher insurance quote. Also, because younger drivers do not have a long driving record, one's (potentially good) driving history cannot be figured into getting a lower insurance rate.

The type of car being insured will also play into the insurance rate that is quoted. Some car makes and models are more likely to be stolen than others. Likewise, a newer car will command a higher insurance premium because it is worth more than an older car.

Driving history will also affect the car insurance rate and whether you are even able to purchase a policy. Speeding tickets and other moving violations can quickly add up to extra dollars on your car insurance policy. If you have a DUI/DWI on your record, you may even require a special type of car insurance, called SR22, for high-risk drivers.

Finally, some states take your credit history into account when calculating your car insurance rate. The reason is that drivers with a good to excellent credit history have been statistically correlated with making fewer insurance claims.