Does a Red Car Cost More to Insure? 6 Car Insurance Myths, Busted

Car insurance is full of folk wisdom, and a surprising amount of it is wrong. Here are six of the most common myths — and what actually affects your premium.

Myth 1: Red cars cost more to insure.

They don''t. Color isn''t a rating factor at all. Insurers care about the car''s make, model, year, repair cost, and theft rate — not its paint. A red sedan and a silver one of the same model are priced the same.

Myth 2: Your credit never matters.

In most states it can — a credit-based insurance score is a common pricing factor. Massachusetts is an exception: it bans credit-based scoring for auto insurance entirely. So whether this myth is true depends on where you live.

Myth 3: Older drivers always pay less.

Premiums generally fall through middle age, but they often tick back up later in life as risk factors change. Age helps, but it''s not a straight line down forever.

Myth 4: A new car is always more expensive to insure.

Not necessarily. Newer cars can cost more to repair, but they also often have safety and anti-theft features that pull premiums down. It depends on the specific vehicle, not its age alone.

Myth 5: Minimum coverage is "enough."

State minimums are a legal floor, not a measure of adequate protection. They''re often far below the cost of a serious accident — and once they''re exhausted, your own assets are exposed.

Myth 6: Filing any claim makes your rate skyrocket.

Not every claim is treated equally. A not-at-fault claim or a comprehensive claim, like an animal strike, usually affects your premium far less than an at-fault accident.

The takeaway: most of what moves your premium is concrete and knowable — your record, your car, your location, and your choices. Want to see what actually drives your number? Ask Sage AI.