Is Insurance Higher For Red Cars | Full Guide 2023

No, red cars don’t require higher insurance premiums. Because the color of the vehicle doesn’t matter according to the auto insurance policy. It is a common question “Is Insurance Higher For Red Cars” that bunch of drivers asks before buying a car insurance policy. But actually, this is a myth about insurance for red cars. Because vehicle color doesn’t affect your insurance premiums. And If you want to buy a car insurance policy, you won’t find any questions related to vehicle color in the insurance application. Keep reading this article to get a complete guide about whether Is insurance higher for red cars?

Read More: How Do Insurance Agents Get Paid

Is Insurance Higher For Red Cars

One of the most common things that we often heard about red cars is that vehicle insurance rates are greatly impacted by vehicle colors. But this is no longer true.

It is a common fiction about red car insurance policies. Because there are a lot of other things that insurance companies take into account when they determine auto insurance rates, car color isn’t essential.

According to Insurance Information Institute, the color of a vehicle doesn’t make auto insurance more expensive because during buying an auto insurance policy other things like car model, car type, car age, gender, and driving history are considered by insurance companies.

Does Having A Red Car Make Your Insurance Higher?

No, that’s untrue because having a red car doesn’t make your insurance higher. There are many myths that red cars have higher insurance rates.

One of the most common myths is that red car are typically expensive to insure. But actually, there is no such evidence that backs up this myth.

Moreover, the vice president of the Insurance Information Institute, said that car color no longer matters whether it’s red, white, or black.

The driver’s behavior is more essential than vehicle color, and also the type of vehicle is important. There is one thing to see traffic tickets and vehicle models are interconnected.

Because One of the most important things for insurance companies to consider is the kind of vehicle. They also consider other components when deciding insurance rates such as policyholders’ credit history, place of driving, number of miles the drivers cover, time of driving, and accident history if the policyholder had any.

The other myth is that aged car drivers have to pay more for their car insurance. People may be confused about auto insurance with life insurance because life insurance rises as the age increases but auto insurance doesn’t change throughout life.

There is an accident prevention course for older drivers of fifty-five or more and if they effectively complete the course, they will lower their insurance premiums by ten percent.

Why Do People Buy Red Cars?

The red color is eye catchy color, therefore most people want to buy red cars. Because red cars are elite and have great status in the world.

A man may choose a red car to buy because the red car is considered to increase confidence on the road and gain attention.

So, if you have a red color car, you must clean it daily. Because red color cars easily get dirty than any other light color cars.

A 2015 survey, which is held by PPG Automotive Coatings’, reveals that most of the drivers primarily love white cars. Approximately 75% of new cars riding on the road are white cars and almost 8% of cars are red cars, 7% blue cars, and 1% green cars. Still, some people are willing to buy red cars because these cars have a striking appearance.

Red color is a more fascinating color than any other colors like white, grey, green, and silver. When the sun rays fall on the red car, it shines brightly and hence gets attention on the road.

Also, the wavelengths of red light are the longest, therefore we can see the red car from a long distance on the road. Plus drivers can easily find their red cars in the car parking place among other colors car.

Buying a new red car is often costly because metallic red paint is usually of high cost approximately $800 or 500 pounds. Many other metallic colors are also expensive but red colors charges are typically lower than those colors.

The resale value of red car cars is generally lower as compared to other cars such as white, black, green, silver, and grey cars.

Does Your Car’s Color Affect Your Insurance Rates?

No, your car color doesn’t affect your insurance rates. Because there are many other things required to determine the insurance rates rather than color.

Insurance companies must look at drivers’ car age, driving record, usage, and location to set insurance rates. Most people think red cars attain more tickets but that isn’t true.

Because red cars aren’t pulled over easily, some people consider that red cars are pulled over easily as compared to other colored cars.

But there is no proof related to this claim. Whenever the driver of a red car is pulled over by a policeman, the reason will be the driver’s behavior instead of the red car itself.

Myths About Red Cars

There are so many misconceptions about red cars and red car insurance. Buying auto insurance isn’t easy, it is somewhat complicated and also it is expensive for the drivers.

So, if you want to buy auto insurance, you must gain a complete guide on auto insurance coverage and its pricing, so that there will be no misconception will leave.

Most people think the red color is the cause of their higher premium rates, but this isn’t true. Color no longer matters in determining insurance premiums.

It’s also a myth that soldiers have to pay greater premiums for their car insurance. Soldiers get favorable discounts on buying auto insurance. Soldiers just need to tell their insurers about the rank and duration of their services.

Insurance policy covering self-employed people’s damages is also a myth. Because insurance policy doesn’t protect you if you are driving your car for business.

Cars With Lowest Insurance Rates

Most people want cheap cars because cheap cars have the lowest insurance rates. But this is not the same for each case because insurance rates change based on the type of vehicle and several other factors affect insurance rates.

According to NerdWallet data, there are the 10 cheapest cars that have the lowest insurance rates. As Subaru Outback has an average annual insurance premium of $1,336, Subaru Forester’s annual insurance premium is $1,347, Honda CR-V cost $1,359 annually, Jeep Wrangler cost $1,406 annually, the annual insurance premium for Hyundai Tucson is $1,406, Mazda CX-5 cost $1,412 annually, Ford Escape cost $1,427 annually, Honda Pilot cost $1,442 annually, Chevrolet Equinox cost $1,459 annually and Ford F-150 cost $1,465 annually.

Why Auto Insurance Rates Increase

The basic reason for an increase in insurance rate is a higher number of accidents. Because more accidents lead to more insurance claims.

And when the number of insurance claim increase, means a lot of costs are required to repair and replace vehicles, Which ultimately increases the insurance rates. In the year between 2021 and 2022, the cost to mend vehicles increases to 6.3%.

Factors That Impact On Car Insurance Rates

There are nine important factors that insurance companies take into account during selling auto insurance policies. Such as Model of car, limits of coverage and deductibles, age, Gender, Residence, Driving record, Mileage, Credit history, and insurance claim history.

Limits Of Coverage And Deductibles

The first thing that insurance companies take into their account is the limits of coverage and deductibles that the drivers select.

Model of car

The model of the car is an important thing that insurance companies consider during calculating quotes. Because if your car isn’t expensive, your premium will be lower. But in case your car is expensive and needs extra money to mend, your insurance premium will be higher. You don’t worry too much about it because every insurance company has its specific criteria for insurance rates depending on the model of the car.

Age

The second factor that insurance companies consider is the age of the driver. Young drivers have to pay more as compared to older drivers. Typically new as well as young drivers are more susceptible to accidents as compared to experienced and older drivers.

Gender

Insurance companies considered gender an important factor that affects insurance rates. Typically men drive more dangerously than women, therefore women have to pay lower insurance premiums than men. When men drive there are more chances of happening of an accident as compared to women.

Place of residence

Place of residence is another important factor in determining your insurance premiums. Your house must have an exact place to park your car like a garage because if you don’t have an exact parking place, you will have to park your car outside of your house. And ultimately this will increase the chances of theft and vandalism. Therefore, people in urban areas have to pay higher premiums for their car insurance.

Driving history

Your previous driving history also plays an essential role in considering the cost of your insurance premiums. Drivers who have accidents and traffic violations on their records need to pay more for their car insurance. In contrast, drivers whose driving history hasn’t any accidents or traffic violations will have to pay less for their car insurance.

Number of miles

Insurance companies also take into account your car mileage. Because when you drive more, the chance of getting into an accident will increase. And when an accident happens to you, the insurance companies will tend to charge higher premiums for you. So, if you want to pay fewer premiums, you must drive less and drive carefully.

Credit history

Your credit history also helps the insurance company in determining your premium rates. According to most insurance companies, your credit history and your driving score are interconnected with each other.

The amount of your car insurance premium depends upon your credit score. If your credit score is higher, your premiums will be lower. But in the opposite case, if your credit score is lower, your premiums will be higher.

Insurance claim history

Drivers’ insurance claim history also helps insurance companies to predict their insurance premium rates. If insurance companies find a filed claim in your insurance history, it’s more likely your premiums will be higher. According to insurance companies, if you once get into an accident, there will be a greater chance you get into another accident.