There has a common belief that color of a car might affect car insurance premium rates. But, it was an urban legend and the truth is that the policy rate has nothing to do with the vehicle’s body color.
When Indian car insurance companies have to issue car insurance coverage, they consider various factors such as car’s model, make, year, features and engine capacity, and so on. Generally, the auto owner’s past records and driving habits may also be taken into consideration while calculating the auto insurance premium.
It clearly means that premium rates have nothing to do with the car’s color. So, those who think that their red hatchback would attract an expensive premium are wrong. Rates of car insurance in India for such hatchback will remain the same even if it is a placid white or a dark black.
Majority of people may think that a red vehicle’s insurance is more expensive because of the fact that red is a color which is most associated with speed racing.
And, faster vehicles tend to have higher auto insurance premiums when the statistical information shows that a fast car is more likely to be involved in an accident as compared to a slower one.
A brand new sports vehicle may have a higher insurance rate as compared to an old compact sedan based on which one of the two has a more accident rate. In fact, a personal driving record of an auto owner also matters a lot.
In case the person has been fined for traffic violations, there might be a marginal increase in insurance rates. Car color matters only when it comes to the chances of being in an accident.
A car with high visibility rank, such as yellow or white is less likely to be involved in an accident. On the other hand, vehicles with low visibility index are difficult to spot on the highway at night.
The policyholder can only avail car insurance benefits when he clears all his doubts or misconceptions. In fact, insured can also save some handsome amount of his hard-earned money on premiums as well. So, do not hesitate to ask your queries to representatives of Indian car insurance companies.