Auto Insurance Myths: What Really Affects Your Rate?
A-MAX Editorial Team
Reviewed by Jayson Cheves, Licensed Insurance Agent
Short answer
Your car's color does not affect your auto insurance rate. Insurers look at your driving history, where you live, and your car's make and model, including its safety features, repair costs and theft rates. A new car or a sports car can cost more to insure, but not always.
We've all heard the rumors about what makes car insurance go up or down. Some are true, some are half true and some are just plain wrong. Let's separate fact from fiction on three of the most common auto insurance myths.
Does the color of your car affect your insurance rate?
False. Whether your car is cherry red, midnight black or unicorn pink, the color doesn't show up on the rate sheet. Insurers care much more about your driving history, where you live, and the make and model of your car. So go ahead and pick the color you love.
Are new cars always more expensive to insure?
Not always. A new car can cost more to replace, and that can play a part. But the year on your registration isn't the deal breaker. Safety features, repair costs and theft rates all matter too. Whether you drive a classic or the latest model, your premium is based on much more than the car's age.
Does owning a sports car raise your insurance?
Often, but not always. There's some truth here. Sports cars often come with higher premiums, since powerful engines can tempt drivers to push the speed limit. But insurers don't see every sports car the same way. Safety features, who's driving and the car's track record all play a part.
What actually affects your auto insurance rate?
- Your driving history, including tickets and accidents
- Where you live and park your car
- Your car's make and model
- Safety features and repair costs
- How often that model is stolen
- The coverage you choose
How A-MAX can help
Have a question about what affects your rate? Walk into one of our 240+ offices or call 1-800-921-AMAX for straight answers from a licensed agent. We shop multiple carriers so you can compare your options. We shop. You choose.
About this page
Written by the A-MAX Editorial Team. Reviewed by Jayson Cheves, Licensed Insurance Agent. We review and update it as state rules and carrier availability change.
Last updated October 29, 2026
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FREQUENTLY ASKED QUESTIONS
No. Car color is not a rating factor. A red car and a gray car of the same make, model and year, driven by the same person in the same area, would be rated the same way. The idea that red cars cost more is a myth.
Make and model tell insurers a lot about risk: how much the car costs to repair or replace, how well it protects people in a crash, and how often that model is stolen. All of these can affect what you pay.
Yes. Your location is one of the factors insurers use. Things like local traffic, accident claims and theft in your area can play a part in your rate, even if your own driving record is clean.
Yes. A driving record with tickets or accidents can affect your rate, but it doesn't mean you can't get covered. A-MAX works with drivers in all kinds of situations and can help you compare options from multiple carriers.
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