Are Red Cars More Expensive To Insure?
There are countless myths and rumours surrounding various types of vehicles and car insurance coverages in Canada. One of the most common myths has to do with the colour of certain cars — particularly red vehicles.
You’ve likely heard the rumour that red vehicles are more expensive to insure. Are there any facts that can back up this car insurance myth? Or is it a rumour that the car insurance industry can’t seem to shake?
Today, we answer the age-old car insurance question — are red cars more expensive to insure than other coloured cars in Canada?
To learn the answer to this question, and many more, be sure to continue reading.
Are red cars more expensive to insure than other coloured cars in Canada?
Simply put, no; if you have a red car insurance companies will not charge you more solely because of the colour that you chose.
You can have a lime green sedan, a bright-red pick-up truck or anything in between — car insurance companies do not use the colour of a vehicle to determine a driver’s car insurance rates.
You may be wondering how this rumour started in the first place. To be honest, no one is quite sure how this car insurance myth came to be. However, many people believe that it stems from the (incorrect) notion that drivers with red cars tend to be riskier. Thankfully, the colour of your vehicle does not affect your risk level as a driver.
So… are red cars more expensive to insure than other coloured vehicles in Canada? No, they aren’t.
How does your risk level affect your car insurance rates and why?
Car insurance companies use a wide variety of individualized factors, like your location, to determine a policyholder’s car insurance rates. These personalized factors directly influence how much you pay for auto coverage.
If, for instance, you live in an area with a high rate of car accidents, then you will likely pay more for coverage than a policyholder living in an area with a low rate of collisions. This is because the first driver is more likely to get into an accident (based on the local history and statistics).
Thankfully, these factors don’t always negatively influence your rates.
For example, if you live in a town or city with a low vehicular theft or vandalism rate, you are less likely to make theft or vandalism-related claims than a policyholder living in a location with a high crime rate. Your insurance company will consider this while determining your rates.
What types of factors influence your car insurance rates in Canada?
As mentioned earlier, several factors influence the price of auto insurance in Canada.
Some of these factors include the following:
- The make and model of the vehicle
- Your driving history
- Your insurance history
- Your location
- Your age
- Your gender
- Vehicle usage (commuting, annual kilometres driven, etc.)
- Types of coverages selected
Additionally, drivers should note that qualifying for discounts can have a huge impact on the overall price of their car insurance.
For instance, if you utilize the winter tire discount (during the set time frame in your province), you can receive a 3% to 5% discount on your coverage!
Drivers can also use innovative smartphone apps, like the Travelers IntelliDrive application. Policyholders can save up to 30% on their car insurance (when they renew their policy with Travelers) if they showcase safe and responsible driving habits on the road.
Debunking common car insurance myths
“Red cars are more expensive to insure” isn’t the only myth that’s been floating around Canadian roadways over the past few decades. There are several common car insurance myths in Canada; some have merit, while others are downright false.
That’s why we’ve put together a brief list of debunked car insurance myths:
Myth #1 — The number of doors influences the price of car insurance
No, the number of doors your vehicle has does not affect the price you pay for car insurance. Car insurance companies do not consider two-door vehicles to be more of a risk than four-door models (or vice versa).
That being said, there are a number of other physical aspects of your vehicle, like the make and model, which directly impact the price of your coverage.
Myth #2 — Car accidents ALWAYS result in rate increases
In many cases, yes, getting into a car accident can cause your auto insurance rates to increase. But, this isn’t always true.
For instance, if a driver has accident forgiveness, their car insurance company cannot increase their rates after their first accident.
Click here to learn more about accident forgiveness and how it works.
Myth #3 — High rates equals higher coverage
In most cases, yes; the more coverage you have, the more you can expect to pay for car insurance.
However, there are ways that drivers can change this (for better or for worse).
For instance, a driver who has been in several severe car accidents with basic coverage may end up paying more than a driver with comprehensive coverage that has never been in a collision. This is due to the fact that the first driver is more of a risk than the second, thus, they need to pay more for coverage.
Additionally, the platform that you use to shop for coverage impacts your insurance rates. If you want to shop around and compare top-rated car insurance quotes, the first thing that you should do is contact a reputable insurance brokerage, like Surex.
Save up to 25% on car insurance with Surex
At Surex, our insurance advisors (also known as brokers) work hard to provide Canadian policyholders with high-quality quotes. Our team does this by working closely with some of the top-rated car insurance carriers in Canada.
Contact us online or over the phone to receive your competitive quotes in ten minutes or less!
While you’re comparing quotes, don’t forget to ask your advisor about how you can save up to 25% when you bundle your policies!
Debunking the myth “do red cars cost more to insure in Canada?” once and for all
As a reminder, no, red cars do not cost more to insure in Canada. This myth, and many more, are simply that — myths.
If you ever have questions about your car insurance policy or car insurance in general, don’t hesitate to reach out to your Surex advisor.