Do Red Cars Have Higher Insurance? (And More Insurance Myths)

 In Auto Insurance, Blog

In the age of the internet, misinformation often gets passed around and becomes “fact” — and this is certainly true when it comes to car insurance. Changes and updates in rules and regulations, rumours from friends and family, and information from different provinces or countries can all contribute to car insurance myths.

At Jeffery & Spence Insurance, it’s important to us that we keep our clients informed about the facts. Here are the most common fictions and facts about auto insurance:

Your vehicle’s colour can affect your car insurance premiums


You’ve likely heard that red cars will have higher insurance premiums than cars of other colours. The rationale behind this is that reckless drivers, young drivers, or drivers who like to speed are more likely to own a red car. The truth is that colour is about the only aspect of your car that doesn’t go into determining your insurance rates. Insurance companies are interested in the model, make and age of the car, as well as safety features, mileage driven, location, etc.

Your car insurance covers vandalism, theft, fire, and hail damage


When people purchase car insurance, the assumption is that they’re covered under all circumstances. However, if you don’t have comprehensive insurance, you and your vehicle won’t necessarily be protected in situations like theft, vandalism, and weather damage. Make sure you get comprehensive coverage, as well as collision coverage, which will protect you if you hit another vehicle or an object.

New cars are more likely to be stolen


It’s understandable why anyone would think that a new car would be more likely to be stolen: they are typically worth more money than older vehicles which makes them more attractive to car thieves. However, the opposite is true, and older cars are stolen more often than newer cars. Newer cars are better equipped with security features and anti-theft devices, which makes them harder to steal.

Where you live impacts your insurance premium


How much you pay for car insurance will vary depending on whether you live in an urban, suburban, or rural area. Urban areas have more cars on the road and more opportunities for accidents, so the insurance costs are higher. If you live in an area with a high theft rate, this could also drive up your insurance premiums.

Drivers under 25 pay more for car insurance


Young drivers typically pay more for car insurance than older drivers, but this isn’t the only factor that determines how much you pay. Insurance companies will also consider:

  • Your driving history and how long you have been a driver
  • If your vehicle is used for personal or business purposes
  • How many passengers you regularly have in your car
  • Your location

In addition to these factors, if you have any speeding tickets, your insurance is likely to go up.

Whether you’re looking for liability coverage, accident benefits, uninsured/underinsured driver protection, collision protection, or a comprehensive coverage plan, Jeffery & Spence Insurance can help you find the right car insurance for you and your family.

Recent Posts
Showing 2 comments
  • Stromsoe Agency

    Okay that was really useful. Red coloured cars have high insurance premiums is something most people doesn’t know. Auto Insurance can come in handy tho since you never know what will happen on the road and having insurance on your back when you run into an accident can be a real life saver.

  • John Scott

    I have read at so many places that red cars owners will have to face higher insurance premiums and i always wondered what does color have to do with the rate, It makes no sense. Thanks for explaining where the color of the car stand in insurance.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Google Rating
Based on 67 reviews
Young Woman Smiling - Jeffery & Spence InsuranceTop Reasons To Have Tenant Insurance- Relaxed smiling couple resting on couch moved in new home with boxes, happy real estate renters owners relaxing on sofa in living room, easy relocation with moving delivery service concept, top view