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Does The Color of Your Car Affect Your Insurance Premiums?

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couple signing paperwork at dealership

Before buying a new car, learn what factors determine high insurance rates

When you’re in the market to buy a car, there are many factors to consider for you to get the best deal and it extends far past the car itself. You also need to organize insurance. However, you might have heard the odd comment about the color of your car driving up your insurance premiums and wondered if it was true. While the color does affect your vehicle’s resale value, there are other factors that affect your insurance premiums.


The color of your car doesn’t increase your insurance

Whether it’s just an old wives tale or just a common misconception, the truth of the matter is that the color of your car doesn’t affect your insurance premiums at all. Don’t believe it? Take a look at this popular comparison site to shop around for insurance rates. At no point does the form require any information about your vehicle’s color.

What this all comes down to is that when you submit your vehicle identification number to your insurance company, they’ll have access to the make, model, and year of your car, but not the color. While all plans have different costs and levels of coverage, none of this has to do with the color of your vehicle.

2019 Ford Mustang blue

A sporty Mustang could cost you more with insurance than a more practical vehicle


The make and model of your car determines your rate

Now that we’ve determined that your car’s color won’t make a difference to your premiums, let’s discover what does affect the cost. The make and model of your car play the biggest factors in determining your insurance premium rate. Your old pickup truck that you’ve had for decades isn’t going to cost you as much as a brand new Mustang would. If you want to keep your premiums low, you need to factor the type of car you buy into the equation.


Your driving habits matter

One of the biggest influences on your insurance premium rates is your driving habits. If you’ve ever been in an accident, you can expect your premiums to soar. Similarly, if you’ve ever been convicted for driving under the influence, you can expect your insurance company to consider you more of a risk than other drivers. If you want to keep your premiums low, take care when you drive.

car accident with motorcycle

If you’re at fault in an accident, this could cause your insurance rates to rise


Insurance premiums reduce as you get older

If you’re a new driver, you might have balked at the quoted cost of your insurance premiums. Unfortunately, given your lack of driving experience, this is something you’re going to have to deal with for a few years. Most insurance plans have a higher cost for those under the age of 25, and in order to prove how good a driver you are, you really need to avoid any accidents. Never be tempted to drink and drive, and pay extra caution on the road. After a while you’ll see your premiums fall.

Buying a new car is an exciting experience, but seeing the insurance quotes can often bring you back down to earth. It’s best to shop around for an insurance plan that suits your needs, as they aren’t all created equally.

This is a collaborative article.