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Do Red Cars Cost More to Insure? Insurance Facts versus Myths

Posted by Pekin Insurance on Jun 13, 2016

That red car on the lot has your attention, but before you buy it, you hear a rumor. Is it true? Do red cars cost more to insure?


Magnum P.I. drives a red Ferrari. The animated race car Lightning McQueen is red. John Carpenter's horror movie car, Christine, is a red 1958 Plymouth Fury. They certainly have a reputation in television and movies for adventure, speed, and danger, but do red cars cost more to insure? 

The truth is, no one knows how much Magnum P.I. pays for his car insurance. Chances are Christine didn't have insurance. Lightning McQueen's policy is anybody's guess!

In real life though, there are a few questions that most insurance companies get about auto coverage. The line between fact and myth is hazy sometimes. It's understandable; insurance laws and regulations can vary notably from state to state. 

Some insurance myths are universally erroneous, and some are not so easily dismissed. In an effort to clear up the confusion, here are several common insurance myths and the facts about them.

The real answers to common insurance questions 

1. Do red cars cost more to insure?

Myth: Red cars cost more to insure. 

Fact: Quite simply, no. The color of a car has no impact on the cost of auto insurance. Your insurance premium depends on everything from your age to your driving record to the safety equipment on the car. It does not, however, cost more to insure a red car than a blue car, green car, or a car of any other color. 

While we are on the subject, another myth is that red cars get more moving violations. This is also incorrect. 

2. Will my insurance company drop me if I get into an accident?

Myth: If you get into a major accident, your auto insurance company will drop you like a hot potato. 

Fact: It is unlikely that your insurance company will drop you because of an accident. The complete answer is much more nuanced, however. If you have a history of accidents, your premium could increase or you may not be eligible for certain coverage. If your accident occurs as the result of a crime or driving while intoxicated, your insurance company may have legal grounds to cancel your policy. 

In general, filing an insurance claim will not result in the termination of your policy, especially if the accident is not your fault. Remember, we're here to help you!

3. Will my insurance cover an accident in a rental car?

Myth: Your car insurance will/will not cover a rental car.

Fact: Both of these are common myths, but the answer is not so common. If your own car is being repaired due to an accident, a rental car may be fully covered with your policy. If you are renting a car on vacation, you may have a combination of coverage from your insurance policy and your credit card. 

The facts in this case depend on your individual policy. Your best bet is to contact your insurance agent and ask them specifically and directly. 

4. If I am in an accident, do I have to use the auto repair shop my insurance recommends?

Myth: If you are in an accident, you have to get your car repaired wherever the insurance company sends you.

Fact:  In many cases, your insurance company will work directly with the repair shop to handle claim and get the repairs done. That's one less thing for you to worry about so you can get back into your driver's seat with as little frustration as possible. However, if you choose to take your car elsewhere, you can.

5. Will my insurance go up if I get a traffic ticket?

Myth: Your insurance rates will skyrocket if you get a traffic ticket.

Fact: Like other myths, the truth is dependent on your situation. If you have an otherwise clean driving record and a long relationship with your insurance company, you may not see an increase in your premium. 

There is also a difference in the severity and frequency of moving violations that could impact your rates. One ticket for going 10 miles an hour over the limit on the highway won't put you into the high risk category.

Several tickets for violations like speeding past a stopped school bus and swerving in and out of traffic on the highway indicate a propensity for dangerous driving and will probably result in an increase in your insurance premium. 

The takeaway

In the end, many car insurance myths are a combination of myth and reality. Some, of course, are completely out of left field. In most cases, however, your policy will determine the answer, so get in touch with your insurance agent and ask! 

At Pekin Insurance, we take special care to provide families and individuals with affordable car insurance and quality coverage. Play it safe and contact us for more information.  

Did you ever wonder "do red cars cost more to insure?" What is your favorite myth about car insurance? Let us know in the comments! 


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