When setting the premium for drivers, insurance companies consider a number of factors. The age and driving history of the driver are certainly taken into consideration. Likewise, the power and top speed of the vehicle are also considered, as faster cars are more likely to be involved in a serious accident.

There is, however, some popular speculation about other factors, which some consumers believe will influence their premium. One such rumor is that drivers of red cars are subject to higher rates of insurance. So is there any truth in this suggestion?

Car insurance providers do not consider the color of a car when setting a premium.

The only reason that the color of a car may be noted on any paperwork is to ensure that the car's identity has not been tampered with. Car color is not considered a risk factor among car insurers.

Statistically, however, drivers of red cars are involved in more accidents than drivers of blue or green cars. Furthermore, on average, red car drivers do pay more for their car insurance than other drivers. The fact is, however, that this is simply a matter of statistics, and has nothing to do with the way in which insurers set up their charges.

When it comes to sporty, faster cars, the color red is a popular choice with buyers. Cars manufactured by Ferrari or Lamborghini, for example, are very often only available in certain colors, and red is always one of those colors. Therefore, statistically, red cars are likelier to be sporty, performance models than those that are blue or green. What that also means is that those drivers will automatically pay higher premiums, because sporty cars are much likelier to be involved in accidents.

Drivers of sporty cars, therefore, represent a more significant risk to insurance companies. Their insurance history is more likely to include a claim for an accident or theft because of the performance and value of their cars. While there may be plenty of non-sporty red cars, and indeed sporty cars that are not red, statistically, red cars tend to be sporty. As such, when you take a statistical snapshot of the average premium paid by drivers of cars of a certain color, it is always the red group that comes out with a slightly higher number.

So when buying a new car, you should be confident that the color of the vehicle will not influence the amount of money that you have to pay for insurance. Your driving history and the value and capability of the car will be the factors that dictate the price.