Fact or Fiction: It’s more expensive to insure a red car?


Separate the facts from the fiction with the latest in AAMI’s myth-busting series to help you uncover the truth about some common insurance misconceptions.

Answer: Fiction!

Well, when you insure with AAMI, it’s fiction.

Many people believe that red car owners drive more dangerously – a trait which bumps up premiums. In fact, if you head online it won’t be long before you find a study or two that claims red cars are indeed more likely to be involved in crashes than other cars.

Some insurance companies look at this data and charge higher premiums to drivers of high-risk coloured cars. But, we don’t think that your taste in car colour should factor into what kind of premium you pay!

When pricing our insurance policies, we look at your past behaviour, not your car’s colour. So, your insurance premium will not be affected by the colour of your car, but the track record of your driver history. Bet you didn’t think all those years of safe, responsible driving would prove to be so handy…

If you’d like to insure any car – red or otherwise! – you can apply for an AAMI Comprehensive Car Insurance policy and may be eligible for AAMI’s Safe Driver Rewards® program*. This benefits safe drivers who remain claim-free, with discounts on your renewal premium as well as the option of adding discounted AAMI Roadside Assist to your cover (after your first year).

So, at AAMI, you can rest assured that your premium won’t be affected by your colour choice. Go ahead and get that red car!

*AAMI’s Safe Driver Rewards® program is available based on number of years car is continuously insured on the same Comprehensive Car Insurance policy without a claim on the policy that impacts the Safe Driver Rewards status. The program may be changed or withdrawn without notice. Safe Driver Rewards credit/discount is a percentage of the Comprehensive Car Insurance rated premium paid the previous year and is applied as a credit to next year’s rated premium.

Insurance issued by AAI Limited ABN 48 005 297 807 trading as AAMI. Any advice has been prepared without taking into account your particular objectives, financial situation or needs, so you should consider whether it is appropriate for you before acting on it. Please read the relevant Product Disclosure Statement before you make any decision regarding this product. The Target Market Determination is also available.

The information is intended to be of general nature only. Subject to any rights you may have under any law, we do not accept any legal responsibility for any loss or damage, including loss of business or profits or any other indirect loss, incurred as a result of reliance upon the information. Please make your own enquiries.