Do red cars cost more to insure? Common auto myths debunked

Overview: Red cars don’t typically cost more to insure. In most cases, your premium is based on the vehicle’s specifics and risk factors pulled from your VIN (make, model, trim, safety features and repair/cost history), not the paint color. So if you’re choosing between colors, focus on what actually affects price, coverage limits/deductibles, the car’s value and performance, your driving/claims history and whether you have any special use cases (like rideshare) that require endorsements.

You’re standing on the lot at the dealership, eyeing a cherry-red coupe, already picturing yourself cruising down the highway. But before you say anything, your friend leans over and says, “Don’t get the red one—your insurance rate will skyrocket.”

In reality, that information is baseless. While you're worried about paint color, you may be missing actual coverage gaps that could leave you paying more out of pocket.

The red car misconception is just one of several myths surrounding vehicle ownership and auto insurance coverage. Separating fact from fiction can help you make more confident decisions about your insurance needs.

Car insurance myths vs. facts

Are red cars more expensive to insure?

We’ve all heard the stories — red cars get more tickets, attract thieves and cost more to repair. In reality, they don’t cost more to insure just because they’re red.

Your car’s insurance rate isn’t determined by its color. It’s based on a 17-character code called the Vehicle Identification Number (VIN). Think of it as your car’s fingerprint — it gives insurers key details they use to assess risk, including engine size, body style, safety features and transmission type. While the VIN contains a lot of information, it doesn’t include your car’s paint color. So whether your car is red, blue, hot pink or camouflage, color itself isn’t a rating factor. If you’ve added a custom paint job or other modifications, consider letting your agent know, as those changes may affect your vehicle’s value or coverage needs.

So why are so many of us convinced that red cars cost more to insure? Much of it comes down to the sports car effect—a red Ferrari or Corvette, for example, may come with high insurance rates that people mistakenly attribute to the color instead of factors like the high-performance engine, the vehicle’s value and repair costs. A red minivan, on the other hand, may cost the same to insure as a beige one.

Is everything paid for with “full coverage”?

You may believe that everything is paid for with “full coverage.” Full coverage is a term and not an actual policy. It generally refers to a combination of coverages such as liability, collision and comprehensive, and depending on the state it may also include Personal Injury Protection (PIP) and/or Medical Payments Coverage. While that list may sound complete, you may have a need for additional coverages like GAP insurance or rental reimbursement.

GAP coverage

In a total loss situation, your insurance policy typically pays the actual cash value (ACV) of your car, not what you still owe on your loan. For example, if you financed a $30,000 car and it gets totaled after a year, your insurance may pay $24,000 while you still owe $28,000 on the loan, creating a gap of $4,000 that you are still responsible for. GAP coverage helps bridge the difference between what your car is worth and what you still owe. Most standard policies don’t include it automatically. Acquiring GAP insurance can be a low-cost way to help prevent a costly financial shortfall.

Rental cars

Depending on your policy details, your insurance company may not automatically pay for a rental vehicle while yours is in the shop due to a loss covered by your policy’s collision or comprehensive coverage. Rental reimbursement coverage is a valuable optional addition that can help pay the cost to rent a car or reimburse eligible travel expenses.

To confirm your rental and travel expenses coverage, review your declarations page. If you have questions or notice something missing, your agent can help clarify your options.

Does my personal auto policy cover rideshare driving?

Another common car insurance myth is that your personal auto policy covers you while driving for a rideshare company. However, most personal auto policies exclude coverage for any kind of commercial driving, which includes rideshare or “driving for hire”.

Rideshare companies carry their own insurance, but there’s a catch. A coverage gap can exist the moment after you've turned on the app but before a passenger actually gets in your car. During that window, you may not be covered by your personal auto policy because you're “working”, but you may not be fully covered by the rideshare company's insurance because you're "available.” If you get in an accident during that time, you could find yourself paying the damages out of pocket.

If you drive for a rideshare company, consider adding a rideshare driver coverage endorsement to your policy before you start driving to help keep you protected. Let your agent know that you use your vehicle for rideshare services so they can explain the applicable coverage options.

Can my insurance rate go up even if I'm not at fault?

While it’s true that you typically won't get a negligence surcharge if you're not at fault, that doesn't mean your rates won't be affected. You may lose a claims-free discount because, despite not being the one at fault, you’re still considered a higher risk. In some states, simply being involved in an accident  — regardless of fault — may affect how your policy is rated.

What to do next

When it comes to car insurance myths, it’s important to shift your focus from folklore to facts, and make decisions based on your actual situation. Here are some steps you can take to help ensure you're covered where it counts:

• Buy the car color you want. Don't let the red car fallacy influence your decision. A brightly colored car doesn't cost more to insure than any other car of the same make and model.
• Audit your coverage. Review your declarations page to confirm the coverages included in your auto policy, such as rental reimbursement. If you’re unsure whether you have GAP coverage, check your loan or dealership paperwork, since it may have been purchased separately.
• If you drive for gig work, talk to your agent. Whether it's food delivery, rideshare or any app-based driving, your personal auto policy may not cover it.

Insurance doesn’t have to feel mysterious. Your coverage details are laid out in your policy, and an agent can walk you through it, identify gaps in your protection and help make sure your coverage fits your needs.

If you need help getting answers to your car insurance questions, connect with a local State Farm agent today.