AUTO INSURANCE ARTICLE

New Year, Red Car and Auto Insurance Rates

By: letter_woman

Perhaps you have been wanting in the past years to get that red car off the showroom and drive it yourself. You may be imagining for long how it would feel to drive that car in the busy streets of New York City or in aimless wanderings upstate. But you have been stopping yourself. Because didn’t your friends say buying a red car would make your premium rates climb to unusual proportions? So you always had to choose between white and black.

It is not surprising that many of us believe this. And end up getting a car with a color we really do not like much, but thought it would save us bucks in terms of insurance, anyway. Surveys say that 40 per cent of car buyers believe the color of their car affects their car insurance rate. A quick search online even generates a plethora of claims that:

Black cars are more likely to be involved in a crash.

White cars are less likely to be involved in a crash.

Red cars are more likely to be ticketed for moving violations.

Black cars are more likely to be stolen.

Perhaps these studies are adapted heavily from pop psychology, where it is sometimes suggested that those who prefer loud colors have the tendency to be risk-takers and are more adventurous. Put it in risk analysis for car insurance, and it fits the making of the myth that those with red cars have high risk and adventure taking potentials.

But whether or not these color personality tests apply to car use and responsible driving behavior, the fact remains that the color of your car is not even one of the considerations for your auto insurance company’s assessment of your premium. The rate for a given brand, make and model will be the same, whether it is black, red, or white.

What does affect the rate you pay? Auto insurance companies' offerings vary based on the prospective insured’s personal details and level of risk.

For personal details, auto insurance companies relate this to the line of work you do, the level of education and the degrees you have completed, and your membership to organizations and the kind of organizations you belong to.

Auto insurance companies also look at the level of risk of every driver, which refers for one, to driving record, residence, gender and age—male drivers and teenage drivers are considered higher risk, among others.

But insurance premiums are not fixed over time. It can increase or lessen at any given period. If you avoid accidents whenever possible, drive at the speed limit, and avoid drinking and driving, your car insurance premium may decrease with time. On the other hand, if you drive carelessly and add up points against your license, your insurance company will likely raise your premium.

So the next time you go to the showroom or meet with your car agent, don’t hesitate to choose the car color that fits your personality.