Does the color of my car affect my insurance rates?

This is a great question and one I’ve heard countless times. While there is probably evidence to suggest that people driving in a red vehicle may be more prone to getting in an accident, the reality is that it’s not significant enough to factor into the insurance company’s rating models. Simply put, insurance companies are more concerned about you than they are about the color of
your car.

Allow me to explain…

Insurance companies used risk­ based models to determine your insurance rates. They adjust your quote based upon the answers you provide to their questions. These questions are determined by their actuaries and are based upon loads of data compiled from the insurance company’s experiences with past customers among other things.

The variables insurance companies are typically concerned with are:

How many minor moving violations have you had recently?
How many major moving violations have you had recently?
How many insurance claims have you had recently?
Have you had any recent at­ fault accidents?
Where do you live?
How old are you?

The list goes on and on but you get the picture…..nothing about the color of your vehicle. So the next time you’re in the market for a new car don’t worry about color of the vehicle affecting your insurance rates. Insurance companies aren’t concerned and you shouldn’t be either.

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