Does Your Car's Color Affect Your Auto Insurance Rates?

People have a lot of ideas about car insurance. They also have a lot of ideas about what different colors of cars might mean. So does your car's color affect your car insurance rates?

Do Auto Insurance Companies Use Car Color to Set Rates?

Auto insurance companies generally won't consider your car's color when determining your car insurance rates. Car insurance companies look for factors that predict the risk of getting into an accident.

Auto insurance companies don't believe that your car's color predicts your risk of getting into a risk of an accident. While there might be a few more accidents with one color of car versus another, there isn't a statistical significance to it the same way there is for other factors that auto insurance companies use to set insurance rates.

Why Do People Think Car Color Matters?

People make assumptions about different colors of cars. They associate red and yellow cars with fast drivers. Fast drivers are often more likely to get speeding tickets or to get into accidents.

Other colors, like black, might be seen as more likely to get into an accident at night because they're hard to see. It is true that there are more accidents at night.

The thing about these types of car color stereotypes is that correlation doesn't equal causation. Insurance companies have better ways of predicting accidents than car color. They can predict fast drivers using factors like age, car type, and driving record. The fact that a fast driver might choose a red or yellow car is just a coincidence and doesn't affect the calculations.

Does Car Type Matter?

Car insurance companies do use what kind of car you have to set your rates. Different types of cars have different types of risks. A slow commuter sedan simply can't get into a high-speed accident in the same way that a sports car can. Heavier vehicles can cause more damage to other vehicles. More expensive vehicles cost more to repair.

Insurance companies use both the chance of you having a claim and the potential value of the claim to set your car insurance rates. Just because they don't use car color, it doesn't mean other information about your car isn't useful. While your driving record might increase or decrease your rates, you will often get different rates if you get a different type of car. Your rates can even change if you get the same car but from a different year. 

For more information on auto insurance, contact an insurance agency near you.