Why Do Red Cars Have Higher Insurance?

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An ongoing rumor that owners of red cars pay higher insurance rates than other colors rightfully begs the question: Is there indeed a conspiracy against red cars? A bit of sleuthing uncovers these answers.

Insurers Don't Know Your Car Color

  • Insurers state the rating process is completely colorblind. Their systems are completely unaware of the color of your vehicle when rates are determined. This statement has been backed up by underwriters at Progressive Insurance and Allstate in an article by Bankrate.

Do They Stick Out of the Crowd?

  • Color Matters, specialists in color theory, have suggested red cars may catch the eye of more traffic cops because they are easier to spot driving down the freeway. Once spotted, a police officer might be more likely to aim his radar gun and catch them exceeding the speed limit. More tickets equals a higher insurance premium.

Is It the Driver?

  • Another theory is that people who select red as the color of their car may be more daring and take more chances. If these people happened to drive more aggressively, they would also get more tickets and be more likely to be involved in a collision, two factors that directly affect insurance premiums.

It's All About the Car and Driver

  • The target market for sports cars are young males. Most sports cars are available in red. This combination of young male driver plus expensive high-performance car results in higher insurance rates, regardless of the color.

Correlation But No Causation

  • While buying a red car does not inherently cause an owner to pay more for insurance than other colors, there seems to be enough evidence to suggest a correlation. Perhaps black should be the new red.

References

  • Photo Credit Image by Flickr.com, courtesy of Rick Flores Image by Flickr.com, courtesy of doug wilson
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