On average, there are more than 6 million car accidents that occur on roads across the country each year. This results in insurance companies paying billions of dollars in claims related to these accidents. To help offset these types of losses, insurance companies will charge higher auto insurance rates to drivers who are determined to be riskier to insure. While the average cost of car insurance nationwide is $1,771 per year for comprehensive coverage, drivers who are more likely to file a claim will generally pay more for a policy.
What that means for you is that having just one small at-fault accident or traffic ticket on your driving record can result in more expensive auto insurance. Plus, there are other factors, like the type of car you drive and the area you live in, that can have a big impact on your rates. But a common belief is that the color of the car you drive can also have a big impact on the price of your car insurance policy, with red cars being more expensive in particular. But do red cars really cost more to insure than other car colors? Or is it just a common driving myth? Here’s what you need to know about the cost of auto insurance for red cars.
Do red cars cost more to insure?
While many people believe that red cars are more expensive to insure, the truth is that the color of your car has little to no impact on how much you pay for car insurance. The color of your car only matters if it reflects your personal taste and style.
This is because car insurance rates are determined, in large part, by the risk that each driver considers for the insurance company. A history of at-fault accidents or traffic convictions can make a driver more risky to insure, as there is a higher chance that a claim will be filed on the person’s insurance policy. As such, if an insurance company determines that a driver is high risk, they are likely to pay more for their car insurance.
However, what is never part of the equation is the color of the vehicle. Insurance companies simply don’t take it into account when determining your rate. So while a history of at-fault accidents or speeding convictions can result in higher car insurance costs, driving a red car won’t.
Factors Used to Determine Auto Insurance Costs
Each insurance company weighs different factors to determine auto insurance rates. Some of the most common factors used to determine auto insurance costs include:
- Driving record: If you have a clean driving record, you may be able to get a lower car insurance premium. If you have a history of accidents, speeding tickets, or traffic violations, your premiums will be higher.
- Location: Where you live can impact the cost of your auto insurance, and in some cases, the difference in cost from one ZIP code to another can be significant.
- Vehicle type: Certain types of cars, such as high-performance sports cars or high-value vehicles, are often more expensive to insure.
- Annual mileage: How much or how little you drive can also be used to help determine your rate.
- Years: Younger drivers often pay higher car insurance rates due to lack of driving experience.
- Marital status: Married drivers typically pay lower rates for car insurance.
- Credit score (in some states): If you have a history of late payments or other credit-related problems, you may pay a higher premium in certain states.
- Sex (in some states): Your gender can also influence the cost of auto insurance in some states.
The amount and type of coverage can also influence the cost of a person’s car insurance. Minimum coverage auto insurance, which is the state-required minimum coverage a driver must have to drive legally, is often the cheapest option because it offers the least protection. On the other hand, full coverage policies cost more on average.
Adding additional coverage to your policy can also impact cost. Adding car rental and towing coverage and other endorsements or add-ons will help increase the cost of your car insurance premium.
Your deductible can also play a role in the total cost of car insurance. Choosing a higher deductible generally means lower premiums. This is because the policyholder bears more of the risk.
Tips to reduce your auto insurance premium
While there are a number of factors that determine how much your insurance will cost, there are ways you can lower your auto insurance costs, including:
- Shopping around: Each company sets its own rates, so the rate offered by one company may be quite different from the rate offered by another. Compare prices with local and national insurance companies and get personalized quotes to compare.
- Take advantage of the discounts: Discounts can be a smart way to lower auto insurance costs, and most companies offer at least some discount opportunities. Ask your company if you qualify for any discounts, such as a bundle discount, a safe driver discount, or a discount for paying your annual premium in full.
- Adjust your deductible: Raising your deductible can help lower the monthly cost of your auto insurance. However, it can also be a risky move, so think carefully and weigh the potential repercussions before you do it.
- Evaluate your policy: Add-ons like roadside assistance or rental car coverage can be helpful, but these types of endorsements can also have an impact on your premium. If you’ve added additional coverage in the past, assess whether or not it’s worth the extra costs.