Does the colour of your car affect your car insurance?

You’ve probably heard people say that some car colours are more expensive to insure than others. But is it true? Ever wonder what goes into calculating your car insurance rates? It’s natural to be curious, especially since these factors directly impact the premium you end up paying. If you're curious about how your car insurance company figures out those rates—and whether the colour of your car plays a role—keep reading!

Car colour impact on auto insurance premiums

The short answer is no! Some drivers wonder if the colour of their car affects insurance rates and which colours might be cheaper to insure. But the truth is that the colour of your car has absolutely no effect on your car insurance rates—that’s just a myth.

It’s not exactly clear where the myth started about bright colours, often red, costing more to insure. One possible reason is that many sports cars are red, and since insurers charge higher premiums for sports cars, people might think it’s the colour that drives up the cost.

But while insurers look at plenty of factors when calculating your car insurance premiums, the colour of your car isn’t one of them. So whether you buy a red car, blue car, or bright yellow car, it won’t make a difference in what you pay. Feel free to pick whatever colour you like!

When does car colour affect insurance rates?

While the colour itself doesn’t affect your rate, owning bright-coloured cars like red cars might still end up costing you more in other ways. Here's what you should know about car color and its impact on insurance rates:

The vehicle itself

Bright colours are more common on higher-end vehicles or those with premium trims. Sports cars, for instance, often come in bold colours, and compared to everyday cars or trucks, sports cars are more expensive to repair or replace when something goes wrong, which leads to higher insurance rates. So, in this case, it’s not really the colour—it’s the type of car that makes the difference.

On the other hand, when a car is more in demand, it can sometimes lead to higher insurance rates. Since brightly coloured cars are generally less in demand than, say, black and white cars, you may see a lower insurance rate on your bright red car than the same model in white.

A custom paint job

Another way that it could increase your insurance is if your car has a custom paint job or the manufacturer used an expensive type of paint. That’s because repainting or touching up a car with special or costly paint can be more expensive after an accident. So again, in this case, it isn't the colour but the custom paint job itself.

Vehicle theft

Here's one way that having a bright-coloured car can actually benefit your auto insurance rates. If you own a vehicle that's more likely to be stolen, your insurance premium could be higher. Interestingly, car colour seems to play a role in theft risk. Cars with bright, attention-grabbing colours are actually less likely to be stolen than those with neutral colours that blend in. Studies show that silver, white, and gray cars tend to have higher theft rates.

Car insurance companies calculate your premium based on how much it would cost to repair or replace your car if something happens to it. So, if your car is pricier, heavily customized, or more likely to be stolen, the cost of a claim could be higher, and that might lead to a higher auto insurance premium.

What factors affect your car insurance premium?

As we've already mentioned, plenty of factors affect your car insurance premiums—colour just isn’t one of them. Here’s a rundown of some factors that can influence how much you pay for car insurance:

Your driving record

Your driving record is probably the biggest factor that impacts auto insurance rates in Canada. Insurance companies check your driving record to assess your risk. If you have several infractions—like traffic tickets, at-fault accidents, or DUI charges—your rates will likely be much higher than someone with a clean record. That’s why it’s important to keep your driving record as clean as possible by following traffic laws and practicing safe driving habits.

The type, make, and model of your vehicle

While colour doesn’t affect your insurance coverage, other car-related factors definitely do. Things like the year, make, model, and trim of your car all play a role in determining your premium. As we mentioned earlier, luxury or sports cars tend to be the most expensive to insure since they cost more to repair or replace.

On the other hand, if your car is loaded with safety features, that could help lower your rates. Insurance companies also consider things like theft rates, collision stats, vehicle recalls, and repair costs for your specific vehicle to assess the overall risk.

Your location

Location is another big factor when insurance companies calculate your rates. They look at things like traffic levels in your area, the number of accidents, crime rates, and even the weather. Drivers in rural areas generally pay lower premiums because there’s less traffic and a lower chance of accidents.

However, if you live in a neighbourhood where car theft is common, your rates could go up. An insurance broker might also suggest adding comprehensive coverage to protect you against theft. And if you live in a place that experiences severe weather or natural disasters, that could impact your rates as well.

Your annual mileage

Your annual mileage is another key factor insurers look at when calculating your premium. As you might guess, driving less can work in your favour. From an insurer's perspective, the less you're on the road, the lower your chances of getting into an accident and filing a claim.

If you don’t drive much, it’s a good idea to let your insurance broker know. They can help you figure out your mileage and see if you qualify for a lower rate or any discounts.

The insurance coverages you choose

The types of coverage you include in your policy will also affect your insurance rates. The more coverage you add, the higher your premium will be. While you’re required to have certain coverages, like liability insurance and accident benefits and, in some provinces, uninsured automobile and direct compensation-property damage coverage, adding optional coverage is up to you.

Optional coverages include things like accident forgiveness, collision coverage, loss of use, rental vehicle coverage, and waiver(s) of depreciation. Adding these will increase your rates, but they also give you more protection. It’s a good idea to talk to an insurance broker to get their advice on which optional coverages are worth adding to your policy.

The coverage limits and deductibles you select

As the policyholder, you not only get to decide which optional coverages to add but also the limits and deductibles that work best for you. For instance, while the minimum required third-party liability insurance in most provinces is $200,000, many drivers find that amount too low and choose higher limits like $1 or $2 million. Having over a million in liability coverage can be really helpful if you’re involved in a major accident, but it will likely raise your monthly premium.

The general rule of thumb is that higher limits mean higher premiums and lower deductibles also mean higher premiums. So, if you’re trying to save money, opting for lower coverage limits and higher deductibles might help. But if you want more protection, higher limits and lower deductibles are usually recommended.

Your credit score

Not all car insurance companies look at your credit score when determining rates, but some do, which is why it’s worth mentioning. An insurance company might check your credit score or credit history when assessing your risk. Why? Because credit is linked to risk. A good credit score shows that you're financially responsible, which can make you seem like a lower risk for late or missed payments in the eyes of an insurance company. You may also be able to complete vehicle maintenance or repairs before they become too severe.

Contact BrokerLink to learn more today

Now that you have a better understanding of how car insurance companies determine rates—and that colour isn’t one of the factors—you probably have a clearer picture of why you pay what you do for auto coverage. If you still have questions about how premiums are calculated, feel free to reach out to BrokerLink. One of our licensed insurance advisors can give you more insight into the process and share tips on how to save money on insurance.

And if you’re curious about auto insurance costs in your area, we encourage you to take advantage of our free online quote tool that can provide you with a competitive quote in minutes. You can also reach us by phone, email, or in person at any one of our locations throughout Canada. No matter how you choose to get in touch, a BrokerLink insurance advisor will be happy to assist you.

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FAQs: Does car color influence your insurance rates?

Do red cars cost more to insure?

No. The colour of your car has absolutely no effect on your car insurance rates.

What car colours make your insurance more expensive?

The colour of your car doesn’t impact your insurance rates. In fact, most insurance companies won’t even ask about it. Whether your car is red, white, silver, or any other colour, you’ll pay the same premiums.

Why don’t car insurance companies take colour into account?

The colour of your car doesn’t pose any extra risk for insurance companies, and unless you have a custom paint job, it doesn’t impact repair or replacement costs either.

Will I pay higher insurance rates on custom paint jobs?

It's possible since the value of your car also affects your insurance. Repainting or touching up a car with special or costly paint can be more expensive after an accident, and your insurance premiums may reflect this.

Do bright car colours affect speeding tickets?

Nope, in fact, white cars actually get pulled over the most, according to the National Motorists Association.

What colour car has the highest insurance?

White and black are the most popular car colours, so the demand—and often the insurance rates—tend to be higher for them.

Are bright-coloured cars more likely to get into accidents?

Bright colours help you stand out more, so driving a car with a bold or unusual colour may actually make you less likely to be involved in certain types of accidents.

If you have any questions, contact one of our local branches.