Will your red car cost you more to insure? Not at all.  Red, black or white – it makes no difference.  In most cases, your insurance company doesn’t even know what color car you drive.

Insurance companies care far more about claims -they’re concerned with the riskiness of both the car and the driver.

The Car

Insurance companies use vehicle safety ratings to offer discounts to customers who drive safer vehicles.  If you’re in market for a new car, look for vehicles that rate highly in terms of driver and passenger protection. Insurers also look at whether a car has a record of expensive claims and the likelihood of it being stolen.  Cars with high theft rates will also command higher premiums for comprehensive coverage.

Factors that determine your premium include year, make, model, body style, and the age of your vehicle.  So, before you head down to the dealership, do some research to keep your insurance rates low.

The Driver

Auto insurance rates are also based on information about the driver – driving history, credit-based insurance scores, age, occupation, location, educational level, marital status and miles driven each year.

Those with long commutes and those who use their cars for business generally pay more than those who drive less.  If you can find a way to reduce your total annual mileage, you may be able to lower your premiums.

While you may not be able to change factors like where you live or your education, you can control your driving record.  Safe driving may seem like a no-brainer, but the resulting savings are huge.  A single speeding ticket can raise your rates by 15%, and two tickets, nearly 40%.¹  Even if you’ve been accident free for some time, it pays to remain cautious and maintain your good driving habits.

At the end of the day, to qualify for the best insurance rates, choose a safe, reliable vehicle, and be a safe driver.

¹Quadrant Information Services, 2017.