Does the color of my car affect my insurance rate? NO*

I have no idea why this question comes up so often.  Not sure where it started, not sure why it would matter.  Either way I was finally asked and it hit me to run a small, non-scientific experiment.

Step one; I asked a transportation professional, this guy Tommy Scott is way more than just a car salesperson, for two Vehicle Identification Numbers(VINS).  In this case it will be the new and exciting Chevy Cruze.  He provided me with two VINs for IDENTICAL vehicles where the only difference is the color.  For our experiment we have a red and a silver Cruze to compare.

Step 2; I am able to quote auto insurance through 8 different carriers.  So to do this quote and keep it simple I used my information.  I then did 16 quotes, 8 with each VIN changing ONLY the VIN.

Step Three; The * and the unscientific part.  As any agent should know and be able to tell you, auto insurance rates are actually extremely sophisticated.  There are literally dozens if not hundreds of factors that go into your rate.  Changing any one element of this rate can make an adjustment to the whole rating matrix.  So that is why there is an *, although for each quote we can change certain easy elements such as home ownership, college degree, miles to work, etc.  There is no way to know how this all plays out behind the scenes.  This “is what it is” and the way auto insurance is rated will not change anytime soon.

The Results; So after 8 quotes with each color I can say there was ABSOLUTELY NO DIFFERENCE in the rates. That being said it is not possible, without the knowledge of exactly how any particular company’s rates work to run all possible variations.  The only way to trump this would be to speak with an underwriter from a particular company who is willing to divulge whether or not color is a factor.  Since that is likely not going to happen we need to just stick with these results on the surface.  It is highly unlikely that color has any affect on your insurance rate.

Even if color was a factor, it is similar to lots of other factors with your car insurance since it is not something that can be realistically fixed immediately.  This is no different than becoming a homeowner, becoming a college graduate, raising your credit score, eliminating that ticket or accident, etc.  The main difference is all of those things have a mostly measurable affect on your rate, color, based on this experiment does not.

Just some ideas, I’m sure I’ll still be asked and until the eight companies I work with put it in writing to me all I can say is I  am almost certain color has no affect on your rate.

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