Insurance myths

With the release of the first of the summer blockbuster movies, we have Thor as a Norse god banished to Earth and making good. If ever we needed evidence that myths have no basis in reality, we need look no further than Marvel comics and this character. With one, or sometimes two, blows of his hammer, all enemies are destroyed. If only life was so simple. Yet, in some of the modern urban myths, there can sometimes be a little bit of truth. Indeed, without some truth, no one would ever believe them. Let's take the common belief that the drivers of red vehicles pay more than the drivers of blue and green vehicles. If you were to take your magic hammer and back a spokesperson for the insurance industry into a corner, you would always get the same answer. The color of a vehicle is not taken into account when the premium rate is calculated. Yet, if you took an average of the rates paid by the drivers of red vehicles, it would come out higher than for other colors. So what's going on?

The answer is simple. Most who manufacture high-powered sports cars use paints in primary colors. Red tends to be the most popular because more people notice it. So, when people are looking for a car that will attract attention, they buy one painted red and drive it in a way that shows them off in what they believe is their best light, i.e. they drive in a fast and reckless way. That's why more red vehicles get stopped for moving violations. It's the way they are driven. The police do not profile the vehicles. They react to the way they are driven. When more red vehicles pick up tickets and are involved in accidents, their drivers are rewarded with higher premium rates. It's always the driver who's being rated. It's just an unfortunate coincidence that reckless drivers often pick high-powered red vehicles to drive.

Then we come to the same myth stated in a different way. The drivers of two-door vehicles pay more than drivers of four-door vehicles. The reason is that most two-door vehicles are sports cars, whereas four-doors usually means a slower moving sedan or compact. Even more importantly, the person who buys a two-door vehicle is usually a single male. Married men and most women buy a four-door vehicle because they expect to be carrying family members. Again, it comes down to a profile of the driver. Family car drivers tend to drive more safely. Single men tend to drive to show off and attract a potential mate.

So, when you are planning the purchase of a make and model, remember what your choice is going to say about you. A gentle vehicle that gets you where you want to go safely will be rewarded by an auto insurance quotes at the lower end of the range. But if you decide to go with a red, two-door bat out of hell, the insurer will judge your driving habits as aggressive and avoid cheap car insurance rate. Instead, you will find a rate intended to be a deterrent.