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The Red Car Surcharge and Other Auto Insurance Myths

Many myths persist about what will and won't lead to auto insurance rate increases. Be a smart consumer and don't let urban legends guide your decisions.  Instead focus on what really affects your wallet.

Car Color 

Online surveys show that many believe insurance premiums are higher for red cars. However, the paint job on a vehicle is not  a factor in setting rates. Insurers are much more interested in safe driving records and the cost of repairs to a vehicle.

This myth is similar to the one about more expensive vehicles but the price of a car has less to do with the rates it incurs than the track record of a certain type of vehicle. Just because a certain car is lower priced doesn't mean it will translate to lower insurance rates. If an expensive vehicle has a better history of avoiding accidents and minimizing damage, it could actually have more affordable rates than a cheaper one.

However, high performance sports cars often do have surcharges that affect their premium price as these vehicles are more liable to be involved in riskier activities.


It is commonly thought that tickets, such as those for parking and speeding violations, automatically result in higher insurance rates. This is not always the case.

For instance, if a driver has a long track record of safe driving, a single speeding ticket may not result in higher rates. Additionally, paying off parking tickets on time should minimize the risk of rate increases. However, excessive speeding and unpaid tickets are two sure ways to see prices rise.


While it is true that older drivers with clean records may find it easier to obtain low insurance rates, the same policy doesn't necessarily transfer over to the vehicles they drive. It's a common misconception that older automobiles are cheaper to insure because there's less risk of them being stolen. However, since there are usually more older vehicle models on the road, they can actually be more desirable to thieves for their parts.


Many consumers are under the impression that personal auto insurance provides coverage for business driving. Understanding that this is not always the case is particularly relevant for the self-employed. It's important for all drivers to fully understand what their coverage provides.

Drivers looking to protect themselves and not fall victim to insurance myths should speak to a HUB broker to explore their options and find a plan that suits their needs. When behind the wheel, it's always important for individuals to have the right protection.