Do Red Cars Cost More to Insure?

Chicago drivers often ask, “Do red cars cost more to insure?” The answer is no – your car’s color does not affect your insurance premiums. Insurance companies don’t even ask for your vehicle’s color when quoting a policy. Whether you’re cruising down Lake Shore Drive in a red car or a blue one, what matters is your driving record, vehicle type, and where you drive – not the paint color. Call Insure on the Spot in Chicago at 773-202-5060 to get a free quote and see how affordable your coverage can be, no matter what color car you drive.

1. Does Car Color Affect Insurance Rates in Chicago?

It’s a common myth that red cars cost more to insure. In reality, car color has zero impact on your insurance rate. Insurance companies in Illinois do not factor in whether your car is red, blue, or any other color when setting premiums. Most insurers never even ask for your vehicle’s color on an application. What they care about are factors that indicate risk (like your driving history and vehicle model), not the paint job.

So why do people believe a red car means a higher premium? The myth likely comes from association: flashy sports cars are often red, and those high-performance cars tend to carry higher insurance costs. A red sports car might be expensive to insure, but not because it’s red – it’s due to the car’s horsepower, cost to repair, and the way it might be driven. If that same sports car were black or silver, the premium would be the same. The color itself doesn’t raise your rate at all.

To illustrate, here’s an example comparison of insurance quotes for different vehicles and colors:

Sample rates for illustration only. The sports car costs more to insure than the sedan due to vehicle type, but changing the car’s color does not change the premium.

As you can see, a red Corvette costs the same to insure as a black Corvette. Meanwhile, a modest sedan is cheaper to insure than a sports car, regardless of color. Bottom line: owning a red car in Chicago won’t automatically make your insurance higher. Instead of color, insurers focus on the real factors discussed next.

2. What Personal Factors Influence Your Insurance Rate?

Who you are as a driver has a big impact on what you pay for insurance. One of the most important factors is your driving record. If you’ve had accidents or traffic tickets on Chicago roads, insurers see you as a higher risk and will charge higher premiums. On the flip side, a clean driving history often earns you lower rates or safe-driver discounts. For example, avoiding speeding tickets on the Kennedy Expressway can help keep your costs down over time.

Insurers in Illinois also consider other personal factors when calculating your rate. These factors are about you (the driver) rather than the car itself. Key personal rating factors include:

• Driving Record: Past accidents, at-fault crashes, and traffic violations (like speeding or DUIs) will increase your rate.
  
• Age & Gender: Young drivers (especially males under 25) pay more because statistically they get into more accidents. Mature drivers in their 40s–50s usually enjoy lower rates.
  
• Marital Status: Married drivers often receive slightly lower premiums, as some insurers view marriage as a sign of stability and lower risk.
  
• Credit Score: In Illinois, insurers can use your credit-based insurance score. Drivers with very poor credit may be charged higher premiums, while those with good credit often pay less.
  
• Annual Mileage: How much you drive matters. A Chicago commuter with long daily drives or rideshare work spends more time on the road (higher risk exposure) than someone who only drives a few miles on weekends.
  

Each of these personal factors contributes to your overall risk profile. Some factors you can’t change (like your age), but others – like keeping a good driving record – are within your control. The good news is Insure on the Spot works with many insurance providers and can help find affordable options even if you’re a younger driver or have some marks on your record.

3. Why Do Vehicle Make and Model Matter More Than Color?

What you drive is a major piece of the insurance puzzle. Auto insurers care a lot about your car’s make and model (the type of vehicle) – far more than its color. In Chicago, if you drive a high-end luxury car or a powerful sports car, you’ll likely pay higher insurance rates than someone with an average sedan or minivan. That’s because expensive or high-performance cars cost more to repair, have higher theft appeal, and might be driven faster, all of which increase risk. On the other hand, an older or modest car is generally cheaper to insure.

Several vehicle-related factors influence your premium:

• Type of Vehicle: Sports cars, luxury sedans, high-horsepower models, or custom cars usually cost more to insure. A compact SUV or family sedan is seen as lower risk compared to a turbocharged coupe.
  
• Vehicle Value: The more your car is worth, the more the insurance company might have to pay if it’s damaged or totaled. For example, repairing a BMW or Lexus after a crash can be pricier than fixing a Ford or Chevy, leading to higher premiums.
  
• Safety Features & Ratings: Modern cars with advanced safety technology (airbags, anti-lock brakes, lane assist, etc.) and strong crash test ratings can earn you discounts. If your car is rated highly for protecting occupants, insurers see less injury risk.
  
• Theft Rate: Certain models are stolen more often, especially in cities. If your vehicle is a common target for theft or break-ins in Chicago, comprehensive insurance for it will cost more. Installing anti-theft devices or alarms can help reduce this risk and sometimes lower your rate.
  
• Age of the Car: Newer cars typically need full coverage (especially if financed), which raises costs. Older cars may be cheaper to insure, and some owners of older vehicles choose to carry only the required liability coverage because the car’s value is lower.
  

For instance, a new sports coupe with a powerful engine will have a higher premium than a ten-year-old sedan, regardless of color. The bottom line: it’s the characteristics of the car itself – its performance, value, safety, and theft risk – that affect your insurance premium, not the paint color on the hood.

4. How Does Living in Chicago Impact Your Car Insurance Costs?

Your location is another big factor in insurance pricing. Generally, urban drivers pay more than rural drivers because cities have more cars on the road and a higher chance of accidents. Chicago is no exception – with its busy streets and expressways, the city sees a high volume of crashes and claims each year. Recent data showed over 100,000 auto collisions in Chicago in a single year. Insurance companies factor in this elevated risk when insuring Chicago drivers, which can lead to higher base rates compared to a quieter Illinois town.

Within the Chicago area, your specific ZIP code can also influence your premium. Insurers analyze claim statistics, neighborhood by neighborhood. They look at things like how often cars are stolen or vandalized in your area, and how frequently accidents occur nearby. If you live in a neighborhood with higher crime or theft rates (or you park your car on the street versus a secured garage), you might see higher comprehensive and collision premiums. Conversely, areas with lower crime or more garages might get slight breaks.

Some location-based factors that affect rates:

• Traffic Density & Accidents: Chicago’s heavy traffic (think I-90/I-94 at rush hour) means more fender-benders and collisions. More accidents in an area generally push premiums up for everyone in that area.
  
• Neighborhood Crime Rates: Auto theft and vandalism are concerns in the city. If your neighborhood has a history of vehicle thefts or break-ins, insurers will charge more for comprehensive coverage. Chicago has made strides in reducing car theft recently, but it’s still a factor.
  
• Weather & Environment: Chicago weather can be harsh. Snowy, icy winters lead to more accidents, and summer storms can bring hail that damages cars. These environmental risks are reflected in insurance costs. (For example, comprehensive coverage claims often spike from hail damage in Illinois.)
  
• Uninsured Drivers: In a large city, there’s a higher chance you might encounter drivers without insurance. Illinois’ uninsured driver rate is around 13–15%. Because of this, Illinois requires uninsured motorist coverage, and insurers account for that risk in cities like Chicago.
  

Simply put, living and driving in a big city means higher exposure to risk. Chicago’s vibrant urban environment comes with crowded roads and varied neighborhoods, which is why location plays a big role in insurance pricing. The key is to make sure you have the right coverage for the risks you face in your area.

5. How Do Your Coverage Choices Affect Your Premium?

Finally, the insurance coverage options you select will directly impact your cost. The more coverage you carry, the higher your premium. Every Illinois driver must carry at least the state’s minimum liability insurance (Illinois law requires 25/50/20 coverage – that’s $25,000 bodily injury per person, $50,000 per accident, and $20,000 property damage). If you choose only the minimum, your price will be lower than if you add extra protection. However, opting for higher liability limits or adding coverages will increase your premium but give you much better financial protection in an accident.

For example, many Chicago drivers with newer cars purchase “full coverage,” which includes comprehensive and collision insurance in addition to liability. This naturally costs more than bare-bones coverage. If you finance or lease a car, your lender will require you to carry full coverage, which raises your costs compared to just having liability only on an old car. Ultimately, finding the right balance of coverage for your needs and budget is key.

Here are some coverage choices and their effects:

• Liability Coverage (Required): This covers damage or injuries you cause to others. Illinois’ minimum is 25/50/20, but you can choose higher limits for better protection. Higher liability limits will increase your premium.
  
• Collision Coverage: Pays for damage to your car from accidents (regardless of fault). Adding collision coverage will raise your premium, especially if your vehicle is valuable, but it ensures your car is covered after a crash.
  
• Comprehensive Coverage: Pays for theft, vandalism, fire, weather damage, or hitting an animal. In a city like Chicago, comprehensive coverage is important to cover risks like car theft or hailstorms. It adds to your cost, but provides peace of mind for non-crash incidents.
  
• Uninsured/Underinsured Motorist: Covers your injuries (and sometimes property damage) if you’re hit by a driver with no insurance or not enough insurance. Illinois requires uninsured motorist bodily injury coverage equal to your liability limits. It’s built into policies and does slightly increase premiums, but it’s crucial given the number of uninsured drivers.
  
• Deductible Amount: This isn’t a coverage but a choice. Your deductible is what you pay out-of-pocket on collision or comp claims. Choosing a lower deductible (e.g. $250) means the insurer pays more of any claim, so your premium will be higher. A higher deductible (e.g. $1,000) lowers your premium, but you’ll pay more yourself if something happens.
  

When tailoring your policy, it’s important to weigh the cost vs. the benefit of each coverage. For instance, carrying comprehensive and collision insurance on a brand-new car in Chicago is wise, whereas an old car might only need liability. Likewise, selecting a deductible you could comfortably afford in an emergency will help you save money on premiums without risking too much out-of-pocket. An experienced agency like Insure on the Spot can help you find the right mix of coverage so you’re protected without overpaying.

Frequently Asked Questions (FAQs)

Q: Do red cars have higher insurance rates in Illinois?

A: No, the color of your car does not affect your insurance premium in Illinois. Insurers base your rate on factors like your driving record, vehicle make and model, and where you live – not on the car’s color. A red car and a blue car with the same driver and details will cost the same to insure.

Q: What factors do Illinois insurers consider for car insurance rates?

A: Insurance companies look at your details, your vehicle, and your coverage choices. Major factors include your driving record (accidents and tickets), age and gender, the car’s make/model, your location (Chicago vs. elsewhere), and the coverage limits and deductibles you choose. Credit history and annual mileage can also play a role in Illinois.

Q: Are car insurance premiums higher in Chicago than in other areas?

A: Generally, yes – Chicago drivers tend to pay higher premiums than those in smaller Illinois cities or rural areas. The city’s dense traffic and higher theft rates lead to more claims, so insurers set higher base rates to account for the added risk. Your exact rate will still depend on your factors, but location is a big component of the cost.

Q: How can I lower my car insurance cost in Chicago?

A: Start by keeping a clean driving record, since avoiding accidents and tickets helps a lot. You can also consider raising your deductible or dropping unnecessary coverages to lower your premium. Don’t forget to ask about discounts (like multi-car, safe driver, or student discounts) – and compare quotes from different companies. Working with a local agency like Insure on the Spot can help you find all the savings available for Chicago drivers.

Q: What’s the minimum auto insurance required in Illinois?

A: Illinois law requires every driver to carry at least 25/50/20 in liability coverage. That means a minimum of $25,000 bodily injury liability per person, $50,000 per accident, and $20,000 property damage liability. Illinois also mandates uninsured motorist bodily injury coverage with the same 25/50 minimum limits to protect you if you’re hit by an uninsured driver.

Get a Quote Today!

Insure on the Spot has been helping Chicago drivers find affordable coverage for nearly 40 years. We know Illinois insurance inside and out – and we’re just a phone call away. Call 773-202-5060 or get a Free Quote Online Today to see how much you can save on quality auto insurance.