Does Car Color Affect Insurance?

You may have heard that red cars have the highest insurance costs. This is often stated as a fact, with the explanation that police officers view people with red cars as more reckless and likely to speed.

It is important to know that this is a misconception. Red cars cost the same to insure as any other color car and are not more expensive to insure. In fact, it is only in certain instances that you may expect your car insurance rates to increase as a result of the color of your car.

In this article, we take a look at which color cars cost more to insure, as well as other factors that will influence your auto insurance rates.

Why Is It Believed That Car Color Affects Insurance Rates?

Why do 40% of Americans believe that a red car is more expensive to insure?

The answer could be that red cars tend to be more expensive to buy, which in turn means that a more expensive car will be more costly to insure.

Red, black, white, and blue cars tend to be the most expensive car colors to buy because they are in high demand with consumers.

Popular colors keep vehicle insurance prices from coming down, because dealerships don’t need to negotiate prices for high in demand colors the way that they would need to do for less expensive models.

In a sense, the color of your car will impact your auto insurance rate. However, it is not the color of the paint job on your car that is the problem, but rather the value of your car that will influence your car insurance rate.

What Is the Most Popular Colored Car?

While you see some interesting car colors on the road, it turns out that most drivers prefer to blend in when it comes to the color of their car.

According to a survey done by Axalta Coating Systems, the most popular car colors in North America are:

• White: 29%
• Black: 19%
• Gray: 17%
• Silver: 11%
• Blue: 10%
• Red: 9%
• Brown: 2%
• Green: 1%
• Yellow/Gold: 1%
• Other: 1%

When Will the Color of Your Car Impact Car Insurance Rates?

As we’ve mentioned earlier, there are certain car colors that are more popular, and therefore in higher demand. Car dealerships tend to charge more for these car colors.

Apart from the actual value of your car and the amount that you paid for it, the only other factors that may increase your car insurance rate could be a custom paint job or vehicle wrap.

Modifying your car with a custom paint job or any other modifications such as new rims can look great, but you will need to report these to your car insurance company.

When it comes to auto insurance, your insurance company will expect that your car is in the same condition as when you bought it in its original form.

For this reason, if you have a custom paint job done or wrap your vehicle in special vinyl, you will need to report this to your car insurance company if you want these modifications to be covered after an accident.

Most insurance companies offer special insurance coverage for aftermarket modifications.

This coverage will extend your automobile insurance to include repairs to your customizations if they are damaged in an accident. This includes a custom paint job or wrap.

Other modifications that you will typically report to your car insurance company include:

• New wheels or rims.
• Headlights.
• Sound systems.
• Suspension or lift kits.
• Exhaust.
• Turbochargers.

What Factors Definitely Affect Auto Insurance Rates?

Now that you know that color doesn’t automatically impact your car insurance rates, you may be wondering what factors you need to consider when asking for a new car insurance quote.

First of all, your insurer will ask for your vehicle identification number, or VIN.

Your VIN provides a description of your vehicle to your insurance company. Let’s take a quick dive into what your insurance company will learn from your VIN.

World manufacturer identifier (WMI)

The first three positions in a VIN number show the world manufacturer identifier. The first position identifies which country the vehicle was made in.

1, 4 or 5 = United States.

2 = Canada.

3 = Mexico.

J = Japan.

K = Korea.

S = England.

W = Germany.

Y = Sweden/Finland.

The second position identifies the company that made the car.

A = Audi, Jaguar, or Mitsubishi.

B = BMW or Dodge.

C = Chrysler.

D = Mercedes-Benz.

F = Ford or Subaru.

G = General Motors, Pontiac, or Saturn.

H = Honda or Acura.

J = Jeep.

N = Nissan.

R = Audi.

T = Toyota or Lexus.

V = Volkswagen VW or Volvo.

1 = Chevrolet.

4 = Buick.

6 = Cadillac.

The third position identifies the vehicle’s type or manufacturing division.

Vehicle descriptor section (VDS)

Positions four to nine identify the vehicle descriptor section. The fourth, fifth, sixth, seventh, and eighth positions identify certain specifics.

These positions tell you the:

• Specific vehicle model.
• Specific engine type.
• Specific body style.

The ninth position is used to see if the VIN is invalid.

Vehicle identifier section (VIS)

VIS provides you with information such as when the vehicle was produced and the specific options or optional features that were added.

These numbers or letters will vary depending on your vehicle. The tenth position (number or letter) tells you the model year.

This standard applies to vehicles built in or after 1981. Before 1981, the VIN format was not standardized and was different for each car manufacturer.

To confirm the year in which your vehicle was manufactured, you can use the reference below: