For years there has been a persistent myth that the color of car you drive can increase your car insurance premium. Many people mistakenly think that buying and driving a red car, for example, will ultimately result in an increase to their car insurance premiums. This simply is not true. The Insurance Information Institute, an industry information clearinghouse funded by insurance companies, insists that your insurance company does not care about color of your car. Instead, your insurance company cares more about the type of car you purchase.

For decades, car owners have thought that their car color choice impacts their insurance costs. The theory goes that a red or black car is more likely than other colors to be pulled over by the police for speeding. People think that red cars are bought by people who are aggressive and drive fast. While speeding tickets do in fact lead to an increase in automobile accidents and insurance claims, which increase car insurance company costs, there are no studies that conclusively prove a correlation between the color of your car and aggressive driving habits. A driver is no more likely to speed in a red car than a green one.

Besides your driving habits, the most important factor in determining your insurance premium is the type of car you purchase. When a car insurance company determines your insurance premium, it will look at the type of car that you bought and consider the likelihood of you getting into an accident and its severity based on its make, model, engine, body type, safety features, and other details about the car. It is imperative that you inquire about the insurance premium payments that you will have to make before buying a specific type of car. In addition, most car insurance companies compute the premium based on the estimated repair costs, the price of the car, and the possibility of your car being stolen. These and many other factors could potentially affect your car insurance premium payments, but the color of your car does not matter when your insurance company determines the premium that you will pay.