New Report Shows More Drivers Believe Red Car Myth

Red convertible sportscar

According to a recent report from USA Today, nearly 42% of Americans think that people who drive cars that are painted red end up paying more for insurance rates.

The survey, which was conducted by, revealed that of people who believe the red-car-theory, 53% are Millenials, and 44% have an undergraduate degree or higher. What’s more, 36% of them earn more than $75,000 a year.

But unfortunately, they’re all incorrect.

The truth is that car color does not impact driver insurance rates, even if the car is red. This myth sits alongside other insurance myths, like one that says insurance companies will refuse to pay repair costs if the driver was at fault. (With the average car repair costing $305.56, that’s a decent chunk of money to pay out of pocket.)

Despite the fact that insurance companies will cover the costs of car repairs, regardless of fault, one in five Americans think that even when the accident isn’t their fault, that they will still have to pay.

Laura Adams, a senior analyst for, pointed out that the survey results indicated that 17% of drivers didn’t know that living in bigger city means that paying higher insurance rates. She also noticed that 34% of Americans think that car insurance companies pay for things that are stolen out of a car when really it would be covered by homeowners and renters insurance.

Adams also explained that insurance policies can differ among states, but that the most common insurance benefits are comprehensive, collision, and liability. Comprehensive and collision coverage protect the driver from damage, whether collision or non-collision, while liability can help to cover the other driver’s expense in the event of an accident.

Adams thinks this is a sign that people aren’t entirely confident about what their insurance does and doesn’t cover. “These results indicate that millions of Americans need a refresher on what insurance does and does not cover,” she told USA Today. “It doesn’t hurt just to pick up your phone and talk to your company or agent.”

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