Does Your Car’s Color Affect Your Insurance Rates?

Does having a red car raise your rates?

Although hundreds of Americans believe that their car color affects their insurance rates, this couldn’t be farther from the truth.

One of the most exciting parts of purchasing a new car is deciding on the color. Some buyers have skipped over makes and models because it didn’t come in the color they wanted. However, is it true that the color of your car can affect your insurance rates?

The short answer is no. Your insurance company does not look at your car color when determining your rates. You’ll be surprised to find out that insurance companies never ask you for the color of your car. However, many factors contribute to fluctuations in your insurance rates.

Are Red Cars More Expensive to Insure?

We’ve all heard the age-old adage to stay away from red cars and purchase ones that will fly under the radar.

The idea of red cars being expensive came from sports cars generally being red. Everyone always wanted to have a shiny, new, candy apple red car. But the truth is, a red sports car will be just as expensive to insure as a sports car that’s black, blue, or even pink. Insurance companies are paying attention to the car, not the color.

You can’t argue the fact that red cars are much more eye-catching than other colors. They attract more attention, especially from the police. Imagine that the excitement of driving your lovely red car causes you to get a speeding ticket. Due to the violation now on your record, your insurance premium will rise, making your red car more expensive to insure.

But if you’re driving safely within the law in your bright red beauty, you have nothing to worry about, from either the police or your insurance agent.

What Factors Do Car Insurance Companies Use to Determine Rates?

If car insurance companies don’t consider your car color when determining rates, what do they look at? Let’s take a closer look at the variables used to decide the cost of your premium.

Some of these factors may include:

  • Age: Younger drivers generally have higher insurance rates, since they’re regarded as more reckless and inexperienced. As you age, you’ll see a decline in your rates. Some drivers can see as much as a 20% drop in rates when they turn 25.
  • Gender: Although there’s not much you can do about this factor, insurance rates for men and women vary. According to some studies, male drivers are higher-risk drivers, and men spend more time driving than women do.
  • Location: The area you live in plays a big role in the calculation of your insurance rate. Insurance companies also look at the crime rate, claims, and weather of a location.
  • Mileage: The more time you spend driving, the likely you are to get into a car accident. The number of miles you drive every day has a significant impact on your insurance premiums.
  • Driving History (Accidents/Violations): Your driving behavior directly affects your risk to an insurer. If you have a clean record, you can expect to see lower rates. If your driving history is full of violations, be prepared to hand over some serious cash.
  • Claims Record: Your driving record isn’t the only record insurance companies take into consideration. A higher amount of claims filed makes you a riskier driver to insure, and this can raise your insurance premiums.
  • Type of Coverage: If your car requires a lot of coverage, your insurance company is taking a larger risk to insure your vehicle. This results in higher premiums, so make sure to check if the extra coverage is necessary for your financial situation.
  • Limits and Deductibles: You can use your deductible to lower your insurance rates. Some drivers opt for higher deductibles to qualify for lower monthly rates.

With so many factors that affect your insurance rates, shop around for insurance at least twice a year. There may be changes in your life that qualify you for cheaper rates.

When Paint Does Impact Car Insurance Rates

The color of your car doesn’t impact your car insurance rates, but your paint job might.  Some drivers elect to get their car painted with special designs or decals. Depending on your insurance policy, this custom paint job is categorized under additional parts and equipment.

If the paint used to spice up your ride is expensive to purchase or supply, you could see a spike in your car’s value. As we all know, the higher your car is valued, the more expensive your insurance rates will be.

Custom specialty parts created for your car will also result in a spike in your insurance premiums. Custom paint jobs may require additional pieces to be created and applied to your car.

If this is the case, you need to make sure the modifications are reported to your insurance company when they happen. If not, failing to do so could invalidate your policy. These modifications are reflected in your insurance premiums to provide coverage in case of an accident.

Rare colors can affect your insurance rates as well. You may have felt like you won the lottery when you got the only sedan in “serious cyan blue”, but don’t celebrate just yet. If the paint color is rare or expensive, you’ll find yourself paying higher premiums here too.

Which Color Car is Cheapest to Own?

As mentioned earlier, your insurance company has no idea what color your car is. That’s right. Zero. Zilch. Nada.

However, many variables go into deciding what color car is cheapest to own. While color may come in abundance at dealerships, a higher likelihood of theft will have you seeing higher insurance rates and vice versa.

On the other hand, colors that are harder to sell will be cheaper to buy. A recent study revealed that cars painted in unusual colors are cheaper at the initial purchase. They also depreciate slower than cars in more popular colors.

Dealers often offer more incentives upfront to buy cars in less desirable colors. Colors like yellow, green, or orange are often left on the lot much longer than black, white, or silver cars. If you’re looking to save a few bucks on a brand new car, opting for an unusual color may be the way to go.

Compare Car Insurance Rates

While there’s no one color, make or model that will give you the best insurance rates, it always pays to do your research.

Although we wish there was one insurance company that always has the best rates, this isn’t the case. To find the best rates for you and your family, take your time comparing rates from multiple insurance companies.

Thankfully, gives you a hassle-free way to do that. All you need to do is enter your info, and you can get started finding the most accurate and affordable insurance premiums today. Best of all, it’s 100% free and only takes a few minutes!

To learn more about how you can walk away with affordable rates for your car, visit

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