One of the biggest urban myths about car insurance is that your premiums go up (or down) based on the color of the car you have. Many car buyers have turned away from buying red cars or black cars, because they believed that it would increase their car insurance. Well today is the day we put that myth to an end.
The fact is insurance companies cannot rate you based on the color of your car. While studies have shown their is a correlation between red cars and people who drive fast, it isn’t necessarily a cause. Remember that saying, “Don’t confuse correlation with causation”. Well, actuaries, the people that do the statistical analysis for insurance company, don’t. And that’s a good thing for people that own red cars!