Do red cars cost more to insure?

Do red cars cost more to insureAuto insurance myths that can stop you from making the right coverage decision.

One of the most common questions about factors that can cause insurance premiums to rise is: do red cars cost more to insure?

The reason is that there are a number of myths that are quite commonly circulated and that are difficult to distinguish from facts. The truth is that the color of the car doesn’t make any difference as to what you pay to insure it. In fact, many auto insurers don’t even ask the shade of the paint. Instead, they want to know the make, model, year, engine size, body type, and age. Also considered are the drivers who will be using the vehicle.

Another common question is whether one speeding ticket will drive up premiums.

Though this can be the case on occasion, more often than not, you will need to have a minimum of two speeding tickets on your driving record before you will see any difference to the rates that are charged for your policy. Considerations that will have an impact include your driving history, how long you have been insured with that specific company, and how much over the speed limit you were going when you received the ticket. The citation alone may not be the only cause for a rate increase. There are typically a number of factors that are taken into consideration before your rates are adjusted.

Rates for auto insurance coverage are not regulated, so there is no standard cost.

This means that car insurers are pretty much able to charge whatever premiums they want in order to provide their policyholders with coverage. Though each state has different rules that they must follow in terms of filing the way that they calculate their customers’ rates, and they must adhere to those calculations when they establish someone’s premiums. Each state also has its own regulators that are responsible for overseeing and reviewing the information and the rates that are being charged by the various auto insurers.

Of course, if you’re ever uncertain, it’s always best to speak with an agent or your insurer. This will help you to know the answer to questions such as: do red cars cost more to insure?


Posted in Auto Insurance Coverages, Auto Insurance Statistics and Information Tagged with: , , , , , , ,

Leave a Reply