No, the color of your car does not affect your car insurance rates. This is one of those urban legends that, for some reason, has stayed within the minds of the public over the years.
To be clear, red cars, neon-yellow cars, zebra-striped cars, and cars with skulls and lightning bolts adorned on their hoods cost no more than a conservative grey or tan colored vehicle.
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Car insurance is a challenging task in and of itself (especially if you don’t use our helpful comparison tools on this site), but let’s dispel some rumors and mistruths you may have heard.
Am I fully covered with minimum state requirements?
You are not necessarily going to be fully covered if you get the minimum car insurance your state requires. Below is a list of some state’s minimum car insurance policy requirements:
- California 15/30/5
- Colorado 25/50/15
- Illinois 20/40/15
- Indiana 25/50/10
- Maryland 20/40/10
- Massachusetts 20/40/5
- Michigan 20/40/10
- Missouri 25/50/10
- New York 25/50/10
- North Carolina 30/60/25
- North Dakota 25/50/25
- Ohio 12.5/25/7.5
- Pennsylvania 15/30/5
- Rhode Island 25/50/25
- South Carolina 25/50/25
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As you can see the requirements are all over the map. To understand what these numbers mean let’s take California’s minimum car insurance standards of 15/30/5.
What 15/30/5 means is if you are in a car wreck caused by your driving or lack of attention, each person who was injured in this unfortunate vehicular incident would be able to get up to $15,000 with the amount of $30,000 put aside for the entire accident.
What this means is if 3 individuals require $10,000 in medical treatment each, using this example, your policy would cover them all.
But if their injuries were more severe and required more medical attention where now each of the 3 injured accident victims requires $20,000 in hospital costs, the person who filed his/her car insurance claim first would be able to get first crack at the $30,000.
This type of situation will put your personal finances through the ringer. Now that your coverage is not enough for the other victims of the accident, they have the right to sue you directly for the remaining amount of their medical bills.
If you take into account that an average three-day hospital stay in the US costs about $30,000, you can easily see how, in this example, using California’s minimum car insurance requirement, coverage would be used up pretty quickly in serious accidents involving lengthy hospital stays.
Does no fault insurance mean if I’m in any accident it’s not my fault?
Unfortunately, this is not the case at all. What no fault coverage means in layman’s terms is that if you are in a car accident that the coverage covers your medical expenses and damage to your vehicle whether or not the accident was your fault.
No fault insurance does not relinquish you from blame if you were at fault in an accident; it simply allows you to seek medical attention and get your car fixed without having to wait for the insurance company to determine who was truly at fault for the car accident.
If you are found to be at fault for a car accident, most likely your premiums will go up.
I am worried about getting my new car stolen, should I buy a used vehicle instead?
If you have a huge concern on what to buy – a new or used car – in regards to what has a better chance of getting stolen, you may be surprised with these results: In 2015, The National Insurance Crime Bureau released its top 10 stolen vehicles of 2014:
- 1996 Honda Accord
- 1998 Honda Civic
- 1999 Chevrolet Pickup (full-size)
- 2006 Ford Pickup (full-size)
- 1991 Toyota Camry
- 2004 Dodge Pickup (full-size)
- 2000 Dodge Caravan
- 2000 Jeep Cherokee/Grand Cherokee
- 2004 Toyota Corolla
- 1997 Nissan Altima
You can see that no cars on that list were new vehicles. Why would this be the case? Well, for many thieves it is not necessarily the car on the whole they want, but the ability to sell parts of the car to shops.
When stealing a new car the demand for parts won’t be as great because there are not as many of those vehicles on the road because they are being purchased as the year goes on.
To get a better understanding of what car insurance truly covers, you need to compare the car insurance rates of top companies in your area by typing in your ZIP code at the bottom of the page!