Does The Colour Of My Car Affect The Car Insurance Premium?

Buying a new car is a life-goal for most of us and a lot of effort goes into it.  This includes weeks of internet surfing, dinner table debates and researching the specifications best suited for us until we have all the details down, right up to the colour- a shiny, dazzling Red!

Just as you set out to buy your fancy red car, your neighbour or a distant uncle might put it in your head that ‘A red car will raise the rate of your car insurance’. And just like that, you settle on your dream buying a ‘sober’ colour thinking that it’ll help you save money on insurance.

You just fell prey to a myth!

The colour of your car is a very important detail. It is the first thing anyone would notice so of course, you would like a stand-out colour for it! However, while the colour of your car is an important factor to you, it is NOT AT ALL important to your insurance provider.

The premium for your car insurance depends on multiple factors such as geographical location, credit and claim history, driving history and record, your age, cost of repairs and replacement of parts etc.

The colour of a car can only be a factor under one circumstance. That is, if you have gotten a custom paint job[1], which increases the price of the car. This can lead to an increase in the premium charged for your car insurance. However, if you are buying a car colour offered by the car company, it will not affect your premium rates.

Insurance providers only need your Vehicle Identification Number or VIN for insuring you and your vehicle. This number contains the manufacturing details of your car, including the make, model and year of manufacture. The colour is not even a factor in it.

This myth that fancy coloured cars raise premium rates may have started with sports cars. These tend to have higher insurance premiums than regular cars because they are driven fast, thus, making them prone to accidents. Hence, insurers charge more to cover fancy sports cars which usually come in bold colours like Red and Gold.

This may have given rise to the false belief in ‘all red cars make for expensive insurance ‘.

Just like the colour of a car is a crucial detail, so is purchasing the right car insurance for it. Your insurance policy needs to be comprehensive in terms of coverage with reliable and reasonable services. For example, Bharti AXA provides you with a wide range of add-on covers and over 5200+ network cashless garages.

Your research should be solid and conclusive like Bharti AXA offering a round-the-clock claim assistance ensuring a 94.6% Claim Settlement Ratio. This helps make them a very hassle-free and customer-friendly option.

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