Does Car Color Affect Insurance?

A car's color isn't one of the many factors that go into calculating an auto insurance premium.

3 min read
Does Car Color Affect Insurance
Photo by Sean Whelan / Unsplash

A car's colour isn't one of the many factors for calculating an auto insurance premium. However, this does not rule out the possibility of car colour having an indirect impact on auto insurance. Some circumstances, such as higher demand and lower supply for a specific colour, can raise the cost of a car and thus its premiums.

According to insurance experts, The colour of your vehicle is never a factor in your car insurance rate, but some stains can cost more while purchasing due to high demand or special orders.

So, is it more expensive to insure a red car? That is conditional. We'll go over how car colour and auto insurance interact below.

Top Car Colors

The price of a car can fluctuate due to various factors, but none are more important than supply and demand. The vehicle market can play a significant role when it comes to car insurance. The popularity of a particular car colour can ultimately influence how expensive that car is and thus how much it costs to insure.

According to a new analysis conducted by, the most popular car colour is white, followed by black.

  • White 23.9%
  • Black 23.2%
  • Gray 15.5%
  • Silver 14.5%
  • Red 10.3%
  • Blue 9.0%
  • Brown 1.4%
  • Green 0.7%

Car Color And Auto Insurance

Is your insurance rate affected by the colour of your car? It certainly can, but not directly. Auto insurance companies will not consider the colour of your vehicle when calculating your insurance premiums.

However, they will consider the cost of the car and the cost of any repairs to that model and the colour of the vehicle.

This can have a significant impact depending on the vehicle and availability. Custom paint jobs, for example, will almost certainly raise the value of your car and, as a result, the cost of repairs.

As a result, the insurance company will charge you more to cover your vehicle. Do you require red car insurance? Unlikely. According to the analysis, red cars aren't top-rated.

If you get a speeding ticket, having a moving violation on your driving record will undoubtedly cause your auto insurance rate. So, while insurance may be more expensive for red cars in some situations, this isn't due to the car's colour.

Your car insurance company is just one of many systems that rely on data and functionality from other systems. When these various systems (market demand) cause a price increase associated with the car colour, this value increase can be reflected in auto insurance.

The Exception: When Color Does Matter

We've already discussed how car colour can affect auto insurance rates, so let's go over a few more. While most situations will result in an increase in your insurance premiums based on the colour of your car, there is one exception: if the colour of your vehicle is one of the least likely to be targeted for theft, it may result in a reduction in your premium based solely on the colour of your car.

If the paint used on your vehicle is particularly expensive to purchase or apply, the car's value will rise. Any increase in value can result in an increase in the cost of auto insurance for that vehicle. Custom parts are another way that colour can affect the value and premiums of your car.

Some custom paint jobs will necessitate the creation of custom parts that must be designed and manufactured specifically for that job. This usually comes at a high cost, partially reflected in the car's insurance rates.

Factors That Do Affect Your Auto Insurance Rates

So, what does if car colour has no direct effect on auto insurance rates? Car insurance premiums are determined by a variety of factors by insurance companies. The critical factors in paying for an auto policy are your age, years of driving experience, gender, driving history, vehicle make and model, mileage, and credit.

Each of these variables can raise or lower your auto insurance rates. While some factors, such as age, are beyond our control, others, such as vehicle type and driving record, are well within our grasp.

The Takeaway

  • Car insurance companies do not consider the colour of your vehicle when calculating your premium.
  • Car colour can affect car value.
  • Colour supply and demand have an impact on car value.
  • Expensive paint jobs and custom parts raise the value of a vehicle.
  • Auto insurance premiums take into account the value of the car.

While car colour can indirectly affect auto insurance premiums, the insurer does not factor it in. On the other hand, colour only affects rates after it has already changed the vehicle's value.

Custom paint jobs, additional labour, and custom equipment and parts can raise a vehicle's insurance premium, but rarely significantly. Finally, the market value and likelihood of incidents will determine which physical aspects of your car interest auto insurers.