While all car owners have some form of car insurance, the actual ins-and-outs of how insurance works is not always clear. Along with all of the confusing phrases, there are also a lot of misnomers about how car insurance works, and what causes some policies to be more expensive than others. There is a formula at work behind how major car insurance policies calculate premiums, but those figures might not be based on what you’d expect.

Are red cars more expensive to insure?

You have more than likely heard someone, at some point in your life, claim that red cars are more expensive to insure. It is not entirely clear where the rumor began or why it started, but there isn’t a lot of truth behind the statement. In fact, several insurance companies, such as Allstate, have even gone so far out of their way as to remind readers and insurance consumers that red cars don’t, in fact, affect insurance premiums.

What affects insurance premiums?

Your car insurance premium will likely never match that of anyone you know. There are so many factors that are taken into consideration when companies are calculating policy premiums, but several major factors are what you should keep in mind. While there are some factors you can not control, such as age, gender, and driving history, others should be taken into consideration when purchasing a vehicle.

Vehicle type, make, model and year all play a large role in how much your insurance premium will cost, even if they aren’t the only factors. For example, sports cars can typically be expected to be more expensive to insure than standard passenger cars, even if that isn’t always the case. The level of insurance you chose for your vehicle, including the deductibles and amount of coverage, will also directly impact your premiums.

Color doesn’t affect your insurance premiums at all

Not only is the myth that red cars cost more to insure altogether false, but car colors themselves also are not a factor in car insurance in general. You may have a personal preference for a vehicle’s color, and there are some reasons to believe that red cars are more likely to get tickets or be pulled over because the color makes the vehicle more noticeable. Still, there aren’t an overwhelming number of statistics to back up that claim. In fact, recent studies have shown that, contrary to some belief, red cars really aren’t more likely to get stolen, either.

There are a number of factors to take into consideration if you are concerned with the cost of your insurance premium, and when it comes to buying a car, it is important to keep these things in mind. While factors such as the vehicle’s age, make, model, mileage, and type can greatly alter your expected premiums, having a red car isn’t on your list of things to worry about.