Red Cars Cost More to Insure: True or Fake News?

Submitted by BlockInsurance on Thu, 10/10/2019 - 15:08

I'm sure we've all heard that red cars cost more to insure than other colors. Is that true or is that fake news? There are all sorts of myths that are floating around about auto insurance but we're here to help you learn the truth!

Let me tell you, that is FAKE NEWS!! 


The car's color is not calculated in your premium. So, now you're probably wondering what does affect the price. There are a few factors that go into your insurance. The make and model of your vehicle, your age, your credit score, and even your claims history.

AGE

One reason your car insurance is so high maybe your age. Especially if you’re under 25 or over 65. Younger drivers pay more for car insurance than older drivers. Why? Drivers between the ages of 16 and 19 are three times more likely to get into accidents. Because of this, car insurance companies charge higher rates to teenagers.

CREDIT SCORE

Bad credit can make your car insurance go up, too. The reason: studies have shown that people with poor credit scores file more claims and get higher payouts. As a result, people with bad credit often pay more for car insurance than people with good credit.

TYPE OF CAR 

Your vehicle also may be to blame for your expensive car insurance. So, if you drive an expensive car, it’s likely your car insurance will be expensive, too. This is true whether you have a classic car, a sports car or a luxury car. These vehicles usually cost more to repair, so companies charge higher car insurance rates for them.

CLAIMS HISTORY

Your car insurance may have gone up because you’ve filed too many claims. Claims cost insurance companies a lot of money, so it makes sense they pass along some of that cost to their customers. Especially their customers who file a lot of claims.


These are just a few of the factors that go into calculating your insurance premium! So now you know, the color of your car has nothing to do with your insurance.

 

The more you know about your coverage, the better off you are!

Give us a call or stop by the office if you have any questions regarding your auto policies :)