Auto insurance-How Does Your Car Color Affect Your auto Insurance Rates?

Do people with red cars really get faster tickets than those with blue cars? Do auto insurance companies use the color of your car to determine your rates? Do certain colors increase your chance of an accident?

How Fast is that Red Car?
Although no one keeps official statistics, stories and anecdotes help to reinforce the urban legend about red cars getting more tickets and being costlier to insure. However, according to the urban legends website snopes.com, there's no evidence to support these ideas. The lack of statistics makes it impossible to say which color cars get more tickets, but police and insurance firm* deny any link between red cars and an increase in tickets and accidents.

As a whole, driving the speed limit is always a good idea, no matter what color car you drive. If you keep your red auto at or near the limit, your chances of getting a ticket are much smaller. In fact, they're probably as is as the guy next to you driving the speed limit in his purple car.

Color and Personality
It may not affect the number of tickets you receive, but what does your car color say about your personality? CAA Magazine, a publication of the Canadian Automobile Association, considered the psychology behind your choice of car color. According to their analysis, the color red supposedly signifies you've a “need for speed,” a theory snopes.com says adds to the perception that red cars receive more tickets.

The Color of Money
What about auto insurance rates? Does your car insurance company use color to determine your premium? The answer is no.

Some people have suggested that insurers use the Vehicle Identification Number (VIN) to determine the car color and use that information, in part, to set the rate for each car. But car color is not one of the details stored in a VIN. Unless your car insurance company asks you, they really have no idea what color your car is. It's no effect on your rate.

If car color doesn’t matter, what types of things do insurers consider when considering your car? Factors like year, make, model, car body type, and engine size are taken into consideration. The Highway Loss Data Institute (HLDI) maintains reports on insurance losses for different makes and models. Some insurers may use this information to adjust the rate they quote you. However, things such as your driving record and ZIP code are often more authoritative to your rate than the type of car you drive. Of course, your rate quote may be higher if your car is expensive, or lower if it's important safety features like air bags.

If you keep your red car near the speed limit, stop at warning light*, yield to oncoming traffic, and make your cell phone calls when you're stopped, you will probably keep your rates low regardless of your car’s color.

So, if you want that red auto, go right ahead and get it.