Does car color impact auto insurance rates?

Does car color affect car insurance rates?

Meanwhile, a 2020 survey of 2,000 licensed drivers by Insure.com found that 46% assumed red cars cost more to insure because these vehicles tend to be dragged more for speed. Of those who did, more than half, or 52%, were women and the rest were men.

Read more: America’s Best Car Insurance Companies in 2022 – District by Region

But is this popular belief a fact or just a myth? This is what the experts say.

Are red cars more expensive to insure?

The truth is, according to experts, insurance companies don’t care much about the color of the car.

InsuranceQuotes.com explained that “the idea that a vehicle’s color can affect your insurance rates is not always accurate.” “Insuring a red car will not be more expensive, although this is the common belief among consumers. For the most part, insuring a red car will not be more expensive than any other color you choose.”

“The color of your vehicle is not just a question in an insurance application, and it’s not a factor,” Christopher Kirschen, chief executive officer of Advanced Insurance, told Insure.com.

However, there are some forms that make buying a car more expensive, which may have an impact on car insurance rates.

InsuranceQuotes.com added: “Although car color usually won’t have an impact on your car insurance rates, buying white, black, blue, and red cars is usually more expensive to buy across the board because they are very popular colors.” “Common car colors may be more expensive due to the high demand for them.”

Read more: What motorists need to know about the degree of their car insurance

The only other scenario in which a car’s color could affect auto premiums, according to experts, is if the car gets a custom paint job — but again, the impact on pricing is marginal.

Car and Drive magazine noted that “if you choose to modify the paint, for example through a custom paint job, you’ll want to include that as part of your insurance coverage.” “Your insurance company will consider your vehicle to be in the same condition you bought it in, so if you made a modification with a custom paint job and want to cover it in the event of damage, notify your insurance company.”

Insurance companies may offer special after-sales coverage for this [modifications] It’s called custom parts and equipment coverage,” the post added. “This extends coverage to repair or replace your customizations, such as custom paint jobs, wheels, sound systems, or lights.”

What are the factors that affect car insurance rates?

Each driver comes with a unique set of risks. To calculate how much a motorist should pay in car premiums, insurance companies consider a range of factors. These include:

1. Driving history

Auto insurers view a poor driving record as an indication that a motorist is likely to file a claim in the future. As a result, accidents caused by error can raise prices significantly. A recent study by financial services firm Bankrate showed that California drivers see an annual average increase of $1,436 after a mishap, the highest rate of any state. Meanwhile, Los Angeles drivers face an average jump of $1,636 annually after causing an accident, the highest of any metro area included in the analysis.

The research also found that of all accidents, falling while driving under the influence (DUI) increases premiums the most. Drivers with a DUI record pay an average of $1,650 more annually for full coverage insurance than the national average, according to the report.

2. Location

Bankert added that the true cost of car insurance is reflected in the percentage of drivers who dedicate their income to car coverage each year and not on the amount they spend on premiums. But because average incomes between states vary widely—often in the tens of thousands of dollars, the company used this metric to analyze 2022 auto insurance rates across all zip codes and carriers across the country’s 50 states to demonstrate the impact of premiums on drivers Cars better overall budgets.

According to the study, the average cost of car insurance in the United States makes up 2.57% of a driver’s annual income, which equates to $1,771 annually. Motorists spend a much higher or lower percentage than average, depending on the state in which they live, with the difference between the most and least expensive insurance premiums at $2,120.

Read more: Revealed – the most expensive and least expensive car insurance in 2022

3. Make and model of the car

Among the biggest factors affecting auto insurance rates is the type of vehicle a person drives. A separate analysis by insurance comparison site The Zebra showed that trucks come in the lowest cost premiums of all vehicle types at $1,655 a year, followed by trucks at $1,735 and SUVs at $1,952. Cars are still the most expensive vehicles to insure, with average annual prices of $2,454.

In terms of branding, Italian luxury carmaker Maserati has the highest annual premiums of $4,393. On the other end of the spectrum is the national brand Fiat, with average annual prices of $1,499.

4. Vehicle life

Zebra’s research also found that new cars are more expensive to insure than older cars because they cost more to repair or replace, especially if they are equipped with advanced features like blind spot sensors and rear view cameras.

Data collected by the company revealed that a 5-year-old car is 27% less expensive to insure than its brand-new counterpart. Annual prices for a half-decade-old Honda Accord, for example, come in at $1,443, while prices for an all-new model come in at $1,838.

“Insurers also take into account variations from one model year to another,” the report noted. “Some model years may be more prone to accidents, thefts, or expensive repair costs than others, which can affect the cost of car insurance.”

Read more: Revealed – the most expensive and least expensive cars to insure in the United States

5. Credit rating

Auto insurers in most states—with the exception of California, Hawaii, Massachusetts, and Michigan—use credit-based insurance scores to help determine premiums because these providers often believe that policyholders with higher ratings tend to make fewer claims than those with lower credit scores.

According to a Bankate report, motorists with a good credit rating pay $1,146 less annually for auto insurance than those with a bad credit history. In Wisconsin, drivers face a whopping $4,128 increase – the highest of any state – when their scores go from good to poor. At the other end of the spectrum are North Carolina motorists who experienced only a $351 increase in insurance premiums under similar circumstances.

Other factors that have a direct impact on auto insurance premiums are a person’s age, gender, marital status, annual mileage, types of coverage and deductibles.

Where does the red car insurance myth come from?

According to Car and Driver, the common misconception that insuring red vehicles is more expensive is down to statistics.

“Sports cars will have higher insurance rates because drivers tend to drive faster and have a higher chance of getting into an accident,” the magazine explained. “When the average sports car driver is shopping for a car, they tend to gravitate more towards the color red. The fact that there are more red sports cars on the road and the odds of these sports cars getting higher rates leads many people to believe that it is the color that causes the prices to go up. Not the car itself.

Read more: Ten ways motorists can save on car insurance premiums

So, who cares about the color of the car?

According to Insurance.com, you are the driver. The price comparison site polled 1,000 married men and women over the age of 25 about their color preferences and found that nearly one-fifth (19.5%) like black compounds, followed by silver (18.5%), white (16.2%) and blue (12.5%). Red, which many believe pushed its premiums higher, came in fifth, and was chosen by 8.5% of respondents.

In terms of their reasons for choosing a particular shade, nearly a third (31.5%) said “it was beautiful”. A quarter admitted they “had no other choice,” while 10.2% chose the color “because it wouldn’t show any dirt.” “I look good in it” and “It blends in” combine the top five motivations for choosing a particular car color.

#car #color #affect #car #insurance #rates

Leave a Comment

Your email address will not be published.