Does the Color of My Car Affect My Auto Insurance Rate?

By Compuquotes Team on March 27th, 2008
Auto Insurance

Auto Insurance companies look at a lot of information in order to determine your auto insurance premium; however car color is not one of them. The auto insurance company will look at your age, the type of vehicle you drive, your insurance claim history, and your driving record and in some states, your credit history.

When you apply for an auto insurance policy, a lot of information about you is sent to the insurance company so they can accurately determine what to charge you for a premium or if they will even give you a policy at all.

Age will affect your auto insurance rate-typically younger people have more expensive insurance because statistically they are more likely to have a collision and claim on their insurance.

This leads us to driving history, where age is again a factor. Typically younger drivers have more collisions and moving violations, such as speeding tickets where older drivers have less. Subsequently, with age comes a longer more complete driving record-which if it is a good one, can really positively affect your insurance rates. If your driving record is clear, then your insurance rates will be lower than if you have collisions or moving violations on your driving record.

Age also impacts insurance claim history-in order to have a history, you have to have insurance and be listed on a policy. Your insurance claim history will show the claims on insurance that you have made in the past. The more claims you've made-the more expensive your insurance will be.

Your credit history comes into play with some insurance companies, however not all auto insurance companies take your credit history into account. It has been shown that statistically people with good credit history are less likely to make a claim on their insurance. If you aren't sure if your insurance company will look at your credit history, ask them if they need to do a credit check. There are plenty of insurance companies that don't require a credit check and these companies tend to base their premiums based on your age, driving record, claims record and the type of vehicle you drive.

The type of vehicle you drive will also impact the insurance premiums that you will pay. If your vehicle is more costly, it means that it is more costly to repair in the event of a collision. Subsequently, how your vehicle rates in the safety and crash tests will also impact your insurance premiums, because cars that have a high safety and crash test rating do not incur as much damage when they are in a collision, and will also reduce the bodily injury that could result due to a collision.

As you can see, there are a lot of factors that are taken into effect when you apply for car insurance. It's also important to note that each insurance company weighs these statistics differently, based on their own formulas. To find the best premium on auto insurance, it's a good idea to get a few quotes from different insurance companies for the same type and levels of insurance on your vehicle, which will help you get the most bang for your buck in case you bang your Buick.

See average annual insurance rates for more than 2,000 vehicles

Top Auto Insurance Provider
Facebook 470 flares Google+
470 flares ×