Posts Tagged ‘Rates’

Insurance companies – the only people that crunch more road safety data then traffic engineers.

Your premiums are based on a plethora of “risk factors”.  The risk factors are all based on probabilities (from real collision data) that you’ll make stupid decisions in your car, crash, and wind up costing the insurance company big money.  So they need to make big money from you so they can pay big money for you.  Got it?

Some of these risk factors are:
– where you live (live in a big city with lots of traffic – premium goes up)
– how old you are (are you 16 years old – premium goes way up)
– your gender (no comment)
– your marital status (pre bachelor party vs post bachelor party – big difference)
– your driving record and collision history (best way to judge future performance is with past behavior….they use this technique in job interviews too)
– even the make and model of your car (convertible sports car vs minivan? – no brainier)

But what about the color of your vehicle?  Are red cars really the most dangerous on the road or is it just an urban legend?

Studies have shown that red cars are involved in more accidents than their blue, green, or gold counterparts, and it is a fact that, on average, drivers of red cars pay higher car insurance rates.

One car insurance company explains that color doesn’t really affect premiums – it’s the drivers of the red sports cars that pay more. Duh.

But perhaps insurance companies should take another look at the numbers.  Dr Stuart Newstead a researcher at Monash University Accident Research Centre has found that you really can judge a car by the color of it’s skin.

His study found that gray cars have a 10 percent higher likelihood to be involved in a collision then the safer white car (that text says “white” as is colored such).  Add the staggering volume of gray cars on the road, and you’ve got some concerned professionals.

So the next time you go car shopping – stop and think about how the color you choose may end up costing you money and maybe even your life.


Read Full Post »