Does The Color Of Your New Car or Truck Effect Your Car Insurance Quote?

February 26th, 2010 by

What an interesting question. Can the color of your car effect your insurance quote? It’s been said that red cars are more easily spotted by the police, which increases your probability of receiving a speeding ticket etc. Is this a myth or is this truth? Kamlesh from Compare Auto Insurance busts this myth for us.

Myth : Red color car have higher auto insurance rates

Answer : There is a myth that red color cars have a higher auto insurance rate and are expensive to insure. The basis of this idea could be related to the fact that all fast or “cool” cars as they are better known are red. When you think of a Ferrari immediately a nice red car as seen above is picturized.

But is it actually true? Should you consider the color of the car when you compare auto insurance quotes online or review car insurance?

Definetly not. The insurance companies do not base their auto insurance rates on the color of the car. Let me tell you how the rates vehicles are based on so you can understand how to compare auto insurance quotes online and review car insurance much better.

The vehicle is the prime factor on which the base rate of auto insurance is decided but the aspects taken into consideration for the rate are the make of the vehicle, model and year of manufacturer. These three are the unique identifiers for a vehicle rating matrix. Each insurer designates a different symbol to each vehicle in their rating structure. Let’s explore why these factors are considered.

Comprehensive coverage or collision coveage of auto :

Make and model are considered to determine the cost to repair of the vehicle in the event of a physical damage claim, or worse, if the car is totaled. For example, it is quite a bit more expensive to repair a Lexus than a Honda (parts, etc.). Therefore, you can expect to pay more to insure the Lexus. It’s simple math to the insurance company.

The year your vehicle was manufactured also comes into play when determining your rate. The older a vehicle is, the less it is worth and the less you can expect to pay to insure it for physical damage coverage.

In fact, there is a point where, if you can afford to purchase a new vehicle in the event yours is damaged in an accident, you may want to remove the physical damage coverage (which includes collision and comprehensive coverage) from your policy.

For example, if your car is only worth $1,500, you may not want to cover it for physical damage, as the cost to insure it may be more than the cost to replace it.

Does the color matter when you compare auto insurance liability coverage or review car insurance liability coverage?

Well, color still has nothing to do with your final insurance premium, but the symbol, or make, model and year, are a factor here as well.

Unlike the physical damage coverage, which is based mostly on the car itself, liability insurance rating focuses the safety of the vehicle and here the insurance companies consider the safety test conducted by the Insurance Information institute and the data collected by the NHSTA and also the safety test of cars.

Remember that this article is written purely on the basis of the vehicle and we will discuss some aspects of the drivers on which the insurance rates are based, which is interseting to note when you compare auto insurance quote or review car insurance to get low auto insurance rates. Check out the auto insurance quotes here … Suprised with the low auto insurance rate?

Did you find this information informative? When you are ready for a new red car, truck, or SUV you can go see your local Cincinnati Cadillac dealer and they will get you all set!

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