NGPF has just started a new service: The Daily QuoD (that's Question of the Day in NGPF-speak!). Subscribe to our blog (right hand side of NGPF Blog homepage) and you will receive a new QuoD every weekday during the school ready to use in your classroom. Enjoy!

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Answer: They cost the same to insure.

From Insurance Information Institute:

"It doesn’t matter. What does matter is the type of car you select. What you pay for insurance is based on make, model, body type, engine size, the age of the vehicle and the age, driving record and credit history of the driver."

Questions: 

1. Were you surprised by the answer? Why or why not?
2. Based on the answer to the question, do you think that red cars have accidents at the same rates as black cars?
3. Do you think that a red Ferrari would have a different auto insurance premium than a black Honda Civic? Why?
4. Why do you think that credit history would matter to auto insurance companies when they are determining premiums?

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Here's the ready-to-go slides for this Question of the Day that you can use in your classroom.

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Looking for additional ideas to spice up your Insurance unit? Check out NGPF's Insurance Resources page! 

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.

More posts by Tim