Choosing this car colour could help you save on insurance premiums

The colour of your car can change the premiums you pay for insurance, new data shows. While this is often put down to safety reasons, one insurer says safety features on newer models mean they no longer need to factor in colour when pricing premiums.
Car colour impact on insurance
How can the colour of your car impact insurance premiums? Image: Virrage Images/

Does the colour of your car affect insurance?

The Insurance Council of Australia (ICA) told Canstar the type and colour of car paint was one factor that car insurers consider when determining how much to charge for insurance.

The ICA said this was linked to research out of Monash University that determined the colour of a car was associated with the likelihood of a crash and with the severity of the crash. White was found to be the colour with the lowest crash risk.

An RACQ spokesperson told Canstar it doesn’t charge according to paint colour and style, but colours that make a vehicle more visible were considered “safer”.

“There have been some studies done over the years on the most visible colours under common driving conditions and it should come as no surprise that fluoro or ‘high visibility’ orange is right up there,” the spokesperson said.

“White is also viewed as a strong performer in most conditions and is a popular, more conservative choice.”

What is the most expensive car colour when it comes to insurance?

Exclusive analysis by Canstar’s research analysts found the average annual comprehensive car insurance premiums by colour, based on quotes for a 40-year-old living in New South Wales and driving a 2020 Toyota Corolla Ascent Sport.

The research shows the most expensive car colour was black, which was quoted at $847 on average, while white was the cheapest at $789.

Car insurance cost by colour - graph

New car technology might mean paint colour no longer impacts price

Allianz Australia Senior Product Manager Keith Foster told Canstar the insurer doesn’t offer a premium discount for certain car colours because the advancement of technology and the inclusion of things like daytime running lights had made such pricing factors “no longer valuable” for determining premiums.

“As newer cars come onto the market, we view the inclusion of more active safety features such as autonomous emergency braking, adaptive cruise control and blind spot monitoring as being more effective in helping to reduce collisions,” Mr Foster said.

“For example, I recently bought a new RAV4, which has some active collision avoidance systems installed, [and] it warns me when I am backing out from a parking spot into traffic, alerts me from moving into a lane with a vehicle already there and can apply the autonomous emergency brakes if it detects a stopped car ahead.

“This safety feature does more in preventing an accident than having a white coloured car.”

Other factors that can impact car insurance price

Other factors considered by insurers when figuring out how much to charge for car insurance include the following, according to the ICA:

  • the type of cover and excess you’ve chosen, including any options you have added
  • the location where the car is parked overnight or during the day
  • the age of the driver
  • the driving record and insurance history of the drivers
  • the type of vehicle being insured (make, model, year)
  • the intended use of the vehicle (private or commercial use)
  • whether you have nominated a market or agreed value for your vehicle
  • whether there have been any modifications to the vehicle

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This content was reviewed by Sub Editor Jacqueline Belesky and Deputy Editor Sean Callery as part of our