Myth Busters; Red Cars and High Insurance Premiums

There are a lot of myths about insurance and specifically auto insurance. These myths have become something of legends and in a lot of cases makes people wary about insurance.

One of the biggest myth insurance professionals have spent years trying to dispel is the one on the color of your car affects how much premium you pay. This myth says that if you own a red car your insurance premium is pricier than say if you owned a white car. We do not know why this is a thing. According to a study done by insuranceguote.com, “almost half (44 percent) of respondents mistakenly think driving a bright red car increases or decreases the cost of auto insurance. The study also showed that this myth is held among drivers between the ages of 18 to 29. This figure doesn’t come as a surprise as most Americans are not very financially literate and since most insurance shoppers do not take time to learn about their policies and insurance terms some of these myths keep gaining ground.

The fact, however, is that the color of your car does not affect your insurance premium. What insurance writers take into consideration when writing your policy however includes the kind of car you have (for instance,  a high-end import car is likely to cost more to insure than a standard American vehicle), your claim and accident history, the age of the car and the driver’s history.

Now that is a myth buster for you!

Leave a Reply

Your email address will not be published. Required fields are marked *