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Premium Increase Due to Car Color

A premium increase due to car color is a belief that a lot of drivers across the United States believe in very strongly. Generally, the belief is that cars that are red tend to be charged higher rates than cars of other colors. This is something that is not as simple as it sounds. For while many drivers who drive red cars sometimes pay higher insurance rates, that is not all that is at play in the situation. There are a lot of other factors that fit into it.

Seeing Red

A lot of drivers are afraid to purchase a red vehicle when they make chooses for a new car. The reasoning behind this is that red cars cost more to insure. While one could see that this is generally true, there are other factors to look at. For example, a large number of red cars out there are sports cars. Red is one of if not the most popular color for such a vehicle. On their own, sports cars are not really though of as safe vehicles.

Many insurance companies take one look at sports vehicles and decide that they are a dangerous risk, especially as cars for teens. This is because almost everyone associates have a sports car with driving fast and being irresponsible. Indeed , there are some statistics that will back this up. A lot of the time, a car will receive a higher rate than another because of what type it is, not what color. Although there may be some increases for this color, it appears that rates tend to be higher on those sports vehicles that are red in color.

Another thing that accounts for an increase for those who have red cars is that this color is flashy in nature. Insurance providers often believe that such flashy cars are very tempting to thieves, and, as such, are more prone to getting stolen than cars that are of a more neutral color. If a company believes that there is an increased risk of a vehicle being stolen, then you are going to take actions to prevent loss on their part. Unfortunately, this may actually mean a rise in insurance rates for those drivers.

While color of a vehicle does matter some, in general, you can make a bold statement that suggest all red cars will pay higher premiums. It is fair to say that some do pay these higher rates but there are other things going on in these situations. As such, it’s difficult to truly acknowledge what the price increase is for drivers of red cars.

What Does Matter

When insurance companies are trying to decide on your rates, they’re going to look at a wide variety of different factors. One of those will be the make and model of your vehicle and you will be asked to provide its color. However, this is not the only form of information you will be asked to provide about yourself as a driver. It is not as if companies make up their minds about what premiums to offer you based solely on the color of your vehicle.

Insurance providers are also going to look at your age, your gender, your marital status, your location, your driving habits, and your general driving history. Depending on the company, one thing is going to be more important than the car color affecting premiums, but there is no way to tell this a head of time. You will just have to wait and see what it is that the providers you want to join value in a new customer.


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