Thursday, December 2, 2021

Why Red Cars Are More Expensive To Insure

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Maserati Quattroporte S Gransport

Fact or Fiction – Red Cars Cost More to Insure

The Maserati Quattroporte S GranSport is the most expensive car to insure this year, with a $4,823 annual premium. While this is certainly a shocking number, if you can afford the $112,000 price tag of the GranSport, you can most likely cover an additional $5,000 a year to protect it.

A powerful engine and high-end finishes are primarily responsible for the high insurance premiums the Maserati’s enjoy, but its appeal to car thieves also plays a part. “Both Maserati models are fairly exotic and expensive to replace and repair. Their high visibility and desirability also raise their appeal among car thieves,” warns Matt DeLorenzo, senior managing editor for Kelley Blue Book.

“High initial price naturally leads to higher repair and replacement prices, and thus higher cost to insure. Any performance vehicle not only has the power to be driven aggressively, but it tends to attract buyers who do just that. And aggressive driving leads to more mishaps and resulting claims. Insurance rates tend to be influenced by the likely buyer, so even the most careful driver who purchases a performance vehicle pays the penalty,” says Joe Wiesenfelder, executive editor of Cars.com.

The Vehicle’s Safety Features

A vehicle with more safety features is less likely to be involved in an auto accident. And if it is in a crash, serious injury is less likely because of better protections, such as airbags. Since insurers have to pay out injury claims, a safer car will cost less to insure than one that’s lacking in protective technologies.

Should You Buy A Red Car Debunking The Myths

Numerous factors go into setting car insurance rates and the type of car you drive is a big one. Insurance companies look at numerous vehicle factors, which include accident claim rates, repair costs, theft frequency, safety ratings, and of course, the initial cost of the vehicle.. The cost of the vehicle is just one reason most of these rides hit our most expensive to insure list.

Myth 2: Red cars cost more to insure because they get pulled over for speeding more. 46% think its true . Reality: Car color doesnt affect insurance rates.

Sending the car to a local mechanic that charged $75 an hour would bring the labor bill to $7,500 and cause my total to run up to $13,200 which would actually cost more than many of the clean titled examples available at the time.

Myth 2 It costs more to insure your car when you get older. Quite the opposite, in factolder drivers may be eligible for special discounts.For example, those over 55 years of age can get a reduction in their auto insurance premium if they successfully complete an accident prevention course .

Unlike many other automakers, this one has never really produced a true dud. You’re sure to have a blast driving one of their cars around town, but you should be prepared to pay a premium for insurance. In fact, the average annual cost to insure a Porsche is $2,342.87, and the brand ranks 33rd on a list of 36 brands.

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The Indirect Effect Of The Red Car Insurance Myth

So whats contributing to the myth? And how come so many people believe in it?

Studies and statistics are inconclusive. But some seem to hypothesize that drivers behind the wheels of red cars and flashy sports cars tend to get more tickets than other vehicles.

The ongoing theory is that drivers with those vehicles tend to take more chances behind the wheel than those who drive other colors and cars.

Since they take more risks with their driving, they will likely pay more for car insurance because they have more tickets and/or claims on their driving records. So inadvertently, the red car insurance myth could affect your premiums. Just in a very roundabout way.

Does The Color Of Your Car Affect Your Car Insurance Rates

Car Insurance Fact Or Auto Insurance Myth? Do Red Cars ...

So if red doesnt make your insurance higher, what about other colors?

Experts say it doesnt matter for your auto insurance rates because insurance companies are concerned about other factors.

In a couple of decades of purchasing various cars and insurance, I have never been asked the vehicles color, says Manos.

Thats because insurers are more worried about other details. Your vehicles color is irrelevant because it doesnt affect the way you drive or your cars safety, says George. Instead, insurance companies care about your cars safety and theft rates, questions that are revealed when they ask for your make, model or vehicle identification number.

In fact, having a red car could be a very good thing, according to a 2012 study by CCC Information Services. The study found that car thieves choose red last, instead preferring the nondescript color of silver for their criminal endeavors. After silver, cars in green, gold, black and white were the most popular for auto-related crimes.

Theyre very common because theyre very in demand, and thus a thief would have less difficulty reselling it, says Fabio Rosato, Founder of Roadologist.com.

Emily Deaton, a financial journalist at Let Me Bank, says that theft isnt the only problem with dark or neutral-colored cars, citing that darker cars can pose greater problems due to difficult visibility in harsh weather or during nighttime.

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Do Drivers Of Red Cars Really Pay More For Auto Insurance

If you own a red car, will you pay more for auto insurance?

Forty-four percent of Americans seem to think so, according to a study by insuranceQuotes.com, an online insurance comparison site.

Insurance companies will consider a myriad of factors in rate calculations, but color is not one of them.

“Color has nothing to do with rates,” Loretta Worters, vice president of communications for the Insurance Information Institute, told CNBC. “I guess that myth just keeps perpetuating.”

In fact, some insurance agencies won’t even ask you for the color of your car when you apply for a quote.

“A red car won’t cost you more than a green, yellow, black or blue car. Insurers are interested in the year, make, model, body type, engine size and age of your vehicle. How you’re perceived based on the color of your car is another matter,” according to Geico.

Still, 53 percent of millennials believe this myth to be true. The same can be said of 45 percent of college graduates and 42 percent of Americans with an annual household income of $75,000 or more.

“These results indicate that millions of Americans need a refresher on what insurance does and does not cover,” Laura Adams, insuranceQuotes.com’s senior analyst, said in a statement.

This isn’t the only myth circulating about car insurance either.

In addition, 17 percent of drivers in the United States are unaware that their location can be a huge factor in the rates that they will pay.

Does Car Color Affect Insurance Rates

The color of your car doesn’t affect your insurance rate. Instead, your insurance company uses other information, like your car’s age, location, usage, and your driving record, to help determine insurance rates. Learn more about the cost factors that impact rates.

Custom paint jobs are another story if you add a custom paint job to your vehicle, optional custom parts and equipment coverage can be added to your policy to protect the added value.

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Does Colour Affect Anything Else

Some research has suggested that there may be a correlation between vehicle colour and crash risk, with white being the safest color. However, vehicle type and light conditions appeared to be more important than colour. Few studies have been done and the results are not conclusive.

Even though red cars are more expensive to buy , they wont get you a higher insurance rate and you can have that beautiful red car without worrying about your insurance being more expensive.

Do Red Coloured Cars Cost More To Insure

No, Red Cars Don’t Cost More to Insure

Let us settle this once and for all. The colour of your vehiclered or otherwisedoes not have any impact on your car insurance premium. An insurer does not charge a car insurance premium based on the cars colour because there is simply no provision in their terms and conditions that allows them to discriminate between two cars based on their colour.

As highlighted earlier, theres no statistical evidence either that proves that red cars are fined more. Hence, we can conclude that there is no correlation between your cars colour and your insurance cost.

However, there are several factors a car insurance company takes into consideration before deciding the car insurance cost. Although the colour is not a direct determinant of the premium you have to shell out, there are certain scenarios where your cars colour can affect other factors, which indirectly affect the car insurance premium.

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Does Having A Red Car Increase Your Insurance

Never fear, though. The myth that red cars cost more to insure is, in fact, a myth. While auto insurance companies take a number of factors into account when calculating your insurance rate, the color of the car isn’t one of them.

When you sign up for auto insurance, your insurance company will want to know the make, model, and year of your vehicle, plus its Vehicle Identification Number .

Rather than the color of your car, your insurance company will be much more interested in the make and model of your car. For example, a standard, mainstream model will be cheaper to insure than a high-end imported vehicle.

Auto insurance companies look at risk factors that could mean that you are more likely to make a claim. These include factors like your claims, location, age, gender, and driving record.

However, while insurance companies tend to look at the same set of risk factors, keep in mind that they calculate their insurance rates differently. This means that you can shop around by getting quotes from different insurance companies to find the best rates.

Insurance premiums take into account the make and model, including the engine size and the car’s sticker price.

Insurers will also often offer discounts for features that could reduce the risk of accidents of theft, such as daytime lights or anti-theft alarm systems.

Older Drivers Pay More To Insure Vehicles

Josep Curto/ Shutterstock

Insurers take into consideration your age when determining your insurance rates. For older drivers around the age of 50, you may pay the cheapest car insurance rates, while senior drivers in their 60s and 70s may see a higher rate.

But senior citizens may be eligible for discounts that ultimately lead to significant savings. Many insurers extend discounts to those who complete courses, which cover safe-driving techniques and road rules, among other topics.

Younger and inexperienced drivers may also experience higher premiums than drivers in their 20s, 30s and 40s and have been driving longer.

Demographics may also impact insurance rates, either directly or indirectly. For example, MoneyGeeks study found that residents in neighborhoods with fewer white residents paid more for car insurance, and young, male drivers are likely to pay higher prices than female drivers.

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Do Red Cars Cost More To Insure 5 Common Car Insurance Myths

  • Common Car Insurance Myths
  • You’ve been eyeing that red car in the dealership parking lot, and you finally purchased it. Congrats! Now you’re ready to get your car insurance rates. But as you’re looking through your car insurance quote, you start to wonder if red cars cost more to insure. Do they?

    Your car insurance rates vary based on your individual circumstances, such as driving history, age, gender and location. Because many factors can impact your rates, you may want to spend time researching and shopping around for insurance quotes that work best for you. Then compare quotes from several providers, so you’re getting the most affordable option and not spending more than you need to.

    As many people may believe, there are myths about comprehensive insurance policies that are not true. Here are five common car insurance myths to keep in mind as you’re shopping and comparing car insurance quotes.

    Do Red Cars Get Pulled Over More Often

    Are red cars more expensive to insure?

    Part of the red car myth is that red cars are more likely to get pulled over by the police than other cars. Some studies show that certain models of cars are more likely to get pulled over, although these results aren’t particularly strong.

    A 2016 review of traffic violation data of more than 300 models by Insurance.com found that the vehicles most likely to be ticketed include a combination of economy and luxury models, as Cover Blog reports.

    Since police pull vehicles over because of the driver’s behavior rather than based on the model, this finding actually suggests that certain types of drivers are drawn to different vehicle models, rather than that police choose to pull over certain models more often.

    While studies are inconclusive, they do suggest that red cars or flashier cars are more likely to get a ticket. The theory here though is that drivers who are more likely to get violations are also more likely to choose red cars or flashy models.

    Riskier drivers are more likely to rack up tickets and to have to pay more for their insurance since the auto insurance companies calculate that these drivers are more likely to submit a claim. So it’s possible that the red car insurance myth is true in a certain way. But it’s simply not the case that insurers place higher premiums on red cars.

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    Cheapest Cars To Insure

    The dominance of SUVs and CUVs continues again this year on our list of least expensive vehicles to insure. Every vehicle in the top 10 is a utility vehicle, except for the Voyager. The top 20 shows the depth of the SUV trend, with 15 of the top 20 vehicles falling into the SUV/CUV category. The rest of the top 20 consists of two trucks, two minivans and a single, solitary sedan.

    Why Do Red Cars Cost More To Insure Insurance Guide Local

    W hen I read the question, Why do red cars cost more to insure than other colored cars? I went back into my 42 year experience of selling insurance and could not recall any time when an insured was asked the color of their car before giving a quote to them. Its just one of those myths which got started somewhere and continues to be a talking point around the office water cooler.

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    Always Get Car Insurance Quotes When Vehicle Shopping

    Car sales plunged last year, with U.S. new vehicle sales in 2020 dropping a whopping 14.6% overall to 14.6 million vehicles compared to 17.1 million in 2019. This is the lowest number of cars sold since 2012. The pandemic hit automakers across the board, with only Tesla, Volvo and Mazda selling more cars last year than they did in 2019. However, sales are picking up in 2021.

    If you’re one of the many people in the market for a new car in 2021, you should always get insurance quotes for any vehicles that have made your shortlist. “Always consider the cost of insurance when shopping for a new car,” says Gusner.

    “Insurance costs can vary dramatically between vehicles, which pushes up the total cost of ownership. Make sure you have the budget for both the car and its insurance.” Penny Gusner, senior consumer analyst for Insure.com.

    Spot checking the cost of insurance is often overlooked in the car-shopping process. “People will often research nearly everything about the car buying process, except what it would take to insure the vehicle they wanted,” says Carl Anthony, Managing Editor at Automoblog.net.

    “They do all of their homework about negotiating the best price yet unintentionally forget to consider insurance coverage, which is one of the most significant expenses immediately following the purchase of any new vehicle. The best advice is to seek out and understand your insurance coverage options before heading to the dealership,” advises Anthony.

    How Car Colors Affect Car Insurance Rates

    Do Red Cars Cost More To Insure

    Emily Edwards

    People believe that the color of their cars affect the cost of their car insurance – namely, flashy colors like red and yellow. In fact, 46% of licensed drivers surveyed by Insure.com believe that red cars are more expensive to insure because theyre pulled over more frequently. In reality, however, not only does color have nothing to do with car insurance rates, a particular model’s risk isn’t determined by the number of tickets its owners receive.

    Insurance.com surveyed 1,000 men and women, all married, licensed drivers over the age of 25, asking them what color their car is, and why they chose that color. The top colors were:

    Top Car Colors
    All data taken from http://www.insurance.com

    The reasons drivers chose their particular color:

    Reasons Drivers Chose Car Colors
    Reason
    I look good in it9.7%
    All data taken from http://www.insurance.com

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    Do Red Cars Get Into More Accidents Or Receive More Traffic Tickets

    There is a myth that red cars are more likely to attract the attention of the police, but this is only true if the driver is doing something wrong. The fact is: red is an eye-catching color.

    Safe drivers are always on the lookout for potential hazards, and a red car is much more likely to stand out.

    On the other hand, red is no longer the flashy color that it was in years past. There are many new cars being manufactured with dark red paint jobs, orange-red paints, and even metallic reds. These vehicles are pickup trucks, station wagons, and even compact cars.

    If you own a car that is very memorable, live in a small town, and the police know you on a first-name basis, then yes, your red car might cause you to get more negative attention.

    However, there are probably many other red cars driving on the road with you that have never been pulled over because the drivers are cautious and responsible.

    If you visit the Insurance Institute for Highway Safetys website, you can find out which newly manufactured cars are the safest, and likely, the least expensive to insure.

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