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Nathan Anderson : Does the color of the car matter when you compare auto insurance quotes or review car insurance coverage? Do certain colors give you a low auto insurance rate?

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Myth : Red color car have higher auto insurance rates

Response : Nathan, I understand where this question is comming form. there is a myth that red color cars have a higher auto insurance rate and are expensive to insure.

The basis of this idea could be related to the fact that all fast or “cool” cars as they are better known are red. When you think of a Ferrari immediately a nice red car as seen above is picturized.

But is it actually true? Should you consider the color of the car when you compare auto insurance quotes online or review car insurance?

Definetly not. The insurance companies do not base their auto insurance rates on the color of the car. Let me tell you how the rates vehicles are based so you can understand how to compare auto insurance quotes online and review car insurance much better.

The vehicle is the prime factor on which the base rate of auto insurance is decided but the aspects taken into consideration for the rate are the make of the vehicle, model and year of manufacturer. These three are the unique identiifers for a vehcile rating matrix.

Each insurer designates a different symbol to each vehicle in their rating structure. Let’s explore why these factors are considered.

Comprehensive coverage or colloison coveage of auto :

Make and model are considered to determine the cost to repair of the vehicle in the event of a physical damage claim, or worse, if the car is totaled.

For example, it is quite a bit more expensive to repair a Lexus than a Honda (parts, etc.). Therefore, you can expect to pay more to insure the Lexus. It’s simple math to the insurance company.

The year your vehicle was manufactured also comes into play when determining your rate. The older a vehicle is, the less it is worth and the less you can expect to pay to insure it for physical damage coverage.

In fact, there is a point where, if you can afford to purchase a new vehicle in the event yours is damaged in an accident, you may want to remove the physical damage coverage (which includes collision and comprehensive coverage) from your policy.

For example, if your car is only worth $1,500, you may not want to cover it for physical damage, as the cost to insure it may be more than the cost to replace it.

Does the color matter when you compare auto insurance liability coverage or review car insurance liability coverage?

Well, color still has nothing to do with your final insurance premium, but the symbol, or make, model and year, are a factor here as well.

Unlike the physical damage coverage, which is based mostly on the car itself, liability insurance rating focuses the safety of the vehicle and here the insurance companies consider the safety test conducted by the Insurance Information institute and the data collected by the NHSTA and also the safety test of cars.

Remember that this article is written purely on the basis of the vehicle and we will discuss some aspects of the drivers on which the insurance rates are based, which is interseting to note when you compare auto insurance quote or review car insurance to get low auto insurance rates. Check out the auto insurance quotes here … Suprised with the low auto insurance rate?

Thanks.
Kamlesh

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Jeff Walker: Can you give me some tips with regards to auto insurance policy?

Response: Sure Jeff, it is always a pleasure to talk about insurance at any time of the day. Here are some tips for auto insurance policy renewal or cancellation which most of us over-look, but are very important for any of us :

Car Insurance Policy Renewal :

The insurance company should send you the renewal notice approximately 30 days before it expires. This is basically to allow you to make the relevant changes in the policy, review auto insurance coverage, compare auto insurance quotes and shop aorund.

If you do not make payment of the premium before the renewal day, the policy coverage will lapse and your policy will be treated as a new coverage. You will loose the No claim discount or the accident forgivness condition might lapse.

If there is a lapse in your coverage due to cancellation of your policy because of non-payment of premiums, insurance companies may then charge you higher premiums for a future policy. Your automobile insurance rates are based on the information you have given to your broker, agent, or insurance company. An insurance company has the right to cancel your policy if the information you have given is not correct or complete.

Your car insurance rates are based on the information you have given to your broker, agent, or insurance company. An insurance company has the right to cancel your policy if the information you have given is not correct or complete. This is considered a misrepresntation and your auto insurance claim can also be denied.

The colour of your car would not affect the premium since the rating is based on the vehicle model, year of make, purchase price, theft frequency, repair cost , safety features and stablity in accident and claims data for such type and make of vehicles. Some insurers do consider higher rating for 2 door vehicles than 4 door vehicles based on the safety feature – four door vehicles have better chances of the occupants being able to leave the vehicle and get out in case of accident. However, this is not the rule of the thumb.

When you don’t want to renew your policy, you should notify your broker, agent, or insurance company immediately. Don’t just stop making payments: that will result in cancellation of your policy because of non-payment and possibly put you in a higher risk category.

Auto insurance Policy cancellation:

Your insurer can cancel your policy for non-payment of premiums, so long as it follows certain procedures. As required by the Insurance Act, the insurer must give you 15 days’ notice of termination by registered mail or five days written notice of termination if it’s personally delivered. If you pay the outstanding premium before the end of the notice period, the insurer may, but is not required to, keep the policy in force. If the insurer does not receive your payment before the end of the notice period, your policy will be cancelled for non-payment.

When you want to change your insurance company mid-way in your policy or before expiry of the present policy and cancel it, you may have to pay a penalty. You may instead want to have the new policy start once your existing policy expires.

Please review your auto insurance coverage, read your policy conditions for cancellation, before you take any step. Compare auto insurance quote and enjoy your low auto insurance premium.

Thanks.

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