Does Color Affect Insurance Rates?

The question of does color affect insurance rates is one of the most popular and common misconceptions about auto insurance. It has been widely believed for years that there is a direct relationship between car insurance rates and color. Most people have thought that red cars were the most expensive to insure and that they would raise your rates. The reason for this is that red is more of a racing color, and that people raced them and drove them more recklessly. This would increase their risk for accident and therefore increase their insurance.

This is not currently true! When insuring your vehicle it does not matter what color the car is. The insurance company usually does not collect this information when giving the initial quote. The only time this information is collected is when you are setting up a policy, and it is more for record keeping of the charactoristics of the car, so it is easy to identify and does not factor into the cost of insurance.

Could this have been true in the past? Possibly, but not likely. It may have been caused by the fact that more males drove red cars, and gender does play a role in insurance rates (with males being a higher risk, and thus having a higher rate). As of right now it is not true that color affects insurance rates. 

Author: Erik Gray