The color you select for your new car is a personal choice based on your own particular preferences. You have every right to choose anything from gray to bright hot pink. But you may wonder if the color choice you make could affect the amount of your automobile insurance policy premium.
Significance of Auto Insurance
Auto insurance is an asset to a property owner. It provides the owner of a car with a backup solution in case of an incident that results in loss of property or injuries. Insurers offer liability policies, which cover others in the case of incidents and full coverage policies that reimburse both the owner of the car and others affected by an unexpected occurrence. When evaluating a car and its owner for a policy, the insurer examines a number of risk factors to determine the policy premium.
Risk Factors
An insurer takes a number of key factors into account when evaluating a car for insurance. One factor is the driving history of the car owner. That may include any incidents in the past, moving violations and claims made for other cars. Insurers commonly charge more for high risk drivers who have multiple driving offenses. In some cases, the insurer takes the driving histories of other occupants at the home of the driver into account when deciding on the rate. Another factor is the credit history of the individual; a driver who has a poor credit history may have to pay a higher rate.
Color of Car
One common question is whether the color of the car will affect the auto insurance policy in any way -- particularly regarding the premium. The common thought is that certain distracting colors, like red, may result in a more expensive policy. But this is a myth -- insurers do not commonly factor car color into the rate quote. They take information about the car color mainly for identification purposes. An insurer is more likely to charge a different rate based on the make and model of the car.
Additional Considerations
Even if the insurer does not charge a higher premium or express a concern regarding the car color, it could cause issues in other ways. For instance, driving a car with a flashy, eye-catching color like bright cherry red or electric blue could draw more unneeded attention on the road from traffic officers and potentially distract other drivers.
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