How does your car’s color effect the cost of your insurance?

You just arrived in your brand-new sports automobile, so. It is stunning. A beautiful sweet apple red, clean, and sparkling. Your neighbor is coming your way as you get out of your new vehicle. He remarks, “Nice automobile.” But he continues, flashing a sly grin: “It’s really unfortunate. Your insurance premium is likely to increase because of that stunning crimson.” You start to hear that sentiment more and more when you drive your new car more frequently. You, on the other hand, are indignant that you’ll be penalized only for driving a red car.

The good news is that it’s a prevalent, but ultimately untrue, misunderstanding that the color of your automobile affects your insurance rate. In fact, the VIN, or vehicle identification number, is frequently used by insurance firms to obtain information about your vehicles. The VIN provides your firm with information on your car’s make, model, year, and the factory where it was made, but not its color.

What is your company basing its prices on if it doesn’t care what color your car is? The first thing it examines, which has very little to do with the automobile itself, is your driving style. In addition, the kind and year of your car are the biggest factors in deciding how high your monthly cost will be. For example, a 1998 pickup vehicle will cost you less than a 2008 sports car.

Where did the myth originate? After all, fire and smoke go hand in hand. Well, the answer is in the numbers. Due to their propensity for being driven more quickly and their increased crash risk, sports cars will run you more in insurance costs. But which color do you think the typical car buyer chooses when choosing a sports car most frequently? If you answered “red,” you ought to look into a position in the statistics industry! Therefore, individuals tend to think that the color of the car is what’s driving up their rate rather than the fact that there are more red sports cars on the road or that sports cars tend to have higher insurance rates [source: Insurance Tree].

Now you can comfortably drive that sweet apple red convertible. Drop the top, take in the sun, and drive carefully!

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