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In terms of insurance, the color of your car has no effect on your premiums. However, what might affect your premiums is the model of your car.

Many might also think that a brightly-colored car (especially RED) attracts the attention of the police more, making it more likely for you to get a ticket, but as long as you are driving safe, the police should not have any reason to pull you over.

Generally speaking, the premium of your car will be higher if your car is more expensive but that is because in the event of an accident, the insurance company will have to pay more to cover your loss. However, the premium is not always necessarily higher just because a car is more expensive. For example, if young drivers choose to drive an older and cheaper Camry, it’s more likely to run into trouble such as getting into car accidents or getting stolen, so its premium would be relatively higher than that of other more expensive cars.

Typically, the premiums of a used, four-door, lower horsepower car are lower, and the premiums of a new, two-door, higher horsepower car are higher. When an insurance company calculates premiums, it considers the car’s susceptibility to damage, occupant injury, theft, the driver’s driving record, and more. Every insurance company has its own determining factors, so make sure to compare auto insurance rates before finalizing your decision.

Insurance companies insure cars with all the original features it comes with from the dealership. Different models may have different costs, but the premium for these cars is not that big of a price difference. However, for cars with customized parts that are not a part of the original car, such as an upgraded radio/audio system, additional TV, customized rims, etc., that are installed after leaving the dealership, that’s when you would have to buy additional coverage because you would need it for these additional customized parts.

Liability insurance is insurance coverage that pays for the other party when you’re at fault in an accident. The reason you purchase high liability insurance is because you want to protect your own assets, not because of your car. The more assets you have under your name, the higher the liability insurance limit you should consider to buy. If the car itself is old and isn’t worth much, you can consider liability only insurance coverage to save money. Sometimes, the difference in premiums between a $50,000 and $100,000 limit of liability insurance is only about $10 for half a year.

Many people assume that umbrella insurance is only for wealthy people and famous celebrities. But in this society where lawsuits are frequent, all families should consider umbrella insurance to protect their assets. Basic auto and home insurance policies have a limit of $500,000… but after a serious accident, those at fault will have to cover for millions of damages. So in this case, if you want to purchase additional coverage, which can compensate more than $500,000, then you will need to purchase umbrella insurance. The minimum limit for umbrella insurance is $1,000,000. For those who rent out houses, have multiple cars at home, or have young teens and adolescents in the family, you may want to consider getting umbrella insurance.

The premium for umbrella insurance is not too bad. The premium for a $1,000,000 coverage limit for a single person household with one car and one home would cost less than $200 a year. The premium for a $1,000,000 coverage limit for a family would be around $200-$300 a year. If you’re at fault in an accident and don’t have enough insurance, then you would have to pay for the $1 million – $2 million damages out of your own pocket.