Could NJ insurance rates go by the color of the car? This color crashes more

Politics has been described as the art of the possible. Perhaps setting car insurance rates should also be described this way.

Actuaries sitting around numbers for the probability of accidents has led to some very funny practices by insurance companies.

In New Jersey and many other states, insurance companies can charge you more just because your credit rating is lower. They stated that they have looked at the data and there is a correlation with accidents.

Really?

If there is any correlation, it is much more likely that there is a correlation in the accidents where the people who decide to file a claim cost those insurance companies money. People who have financial difficulties are the ones who will have a lower credit rating. It probably doesn’t mean they have more accidents than their wealthier neighbor. It probably means the rich neighbor will absorb the cost of a fender bender out of pocket rather than risk a claim that could raise their own insurance rates. And so we call this what it really is by the insurance companies. Greed.

Here’s another one. By the time you get divorced, insurance companies have decided that you are a riskier driver. Again, are you suddenly driving worse because you’re single? very doubtful It probably goes back to the same reason. finance

Divorce sets people back. Divorce is expensive. If you come out of it financially unscathed, you’re the rare case. Again, when you are financially hurt, you may have no choice but to file a claim for minor damages, as opposed to when you were married and doing better financially and may have absorbed that cost and not gone through insurance.

So let’s put to rest this fairy tale that New Jersey insurance companies really take the risk of an accident. They simply see the risk of shelling out some dough. God forbid someone files a claim and ends up using the insurance they’ve paid for for years. what a racket

So I started thinking about what other funny ways insurance companies could think of to set rates? If they want to pretend it’s just crash risk, have they looked at whether hair color correlates with who crashes more? We tend to accept the unfair status quo of setting rates on things like credit ratings. But imagine the public outrage if they suddenly charged redheads more and blondes less.

How about the color of your car? There is actual data to back this up. In one study, certain car colors were found to be more and less likely to be involved in accidents.

Who would pay more with this half-baked scheme?

Owners of black cars. The study shows that black cars are 47% more likely to be involved in a collision. It has real data backup. So why don’t insurance companies go after the color of the car?

I’ll tell you why.

See the examples of credit rating and divorce. Because the color of the car will have nothing to do with whether someone is more or less likely to file a claim. Money is the only thing they care about.

Here’s how the study breaks down which car colors are more and less likely to be involved in an accident.

More accidents:

1. Black

A study published in Money Super Market found that black cars are 47% more likely to be involved in collisions than cars of any other colour.

Black sports car

Rawpixel Ltd

2. Gray

The second most dangerous car color to own. Gray cars are 11% more risky than the safest car color, which we’ll get to.

Ethan Finkelstein/ Townsquare Media Hudson Valley

Ethan Finkelstein/ Townsquare Media Hudson Valley

3. Silver

10% more risk than the safest.

Generic car on white background

Vladimiroquai

4. Blue

This popular color poses a 7% greater risk.

Three-dimensional image of a blue car

Rawpixel

Fewer accidents:

1. White

This is the safest colored car you can drive. It has 12% less chance of being in a crash than a black car. And this in all weather and lighting conditions.

Fast moving car with motion blur

Hon Fai Ng

2. Yellow

Your banana car will be the second safest on the list. If you don’t mind driving a car that looks like a banana, you do.

Michael J. Rivera/TSM

Michael J. Rivera/TSM

3. Orange

Orange is NOT the new black. It is one of the safest colors statistically speaking.

Photo by Oli Woodman on Unsplash

Photo by Oli Woodman on Unsplash

4. Gold

It’s not a popular choice, but the theory why this is the fourth safest car color is simply that it stands out so much.

Michael J. Rivera/TSM

Michael J. Rivera/TSM

The opinions expressed in the above post are solely those of 101.5 New Jersey talk show host Jeff Deminski.

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