Selecting this coloration can prevent car insurance prices – Canstar

The color of your car can change the premiums you pay for insurance, new data shows. While this is often attributed to security concerns, one insurer says security features on newer models mean they no longer have to look at color when pricing.

How can the color of your car affect insurance premiums? Image: Virrage Images /

Does the color of your car affect insurance?

The Insurance Council of Australia (ICA) told Canstar that the type and color of car paint is a factor auto insurers consider when determining the amount insured.

The ICA said this was related to an investigation by Monash University that found that the color of a car has been linked to the likelihood of an accident and the severity of the accident. White was found to be the color with the lowest risk of crashing.

A RACQ spokesman told Canstar that it doesn't charge for paint color and style, but colors that make a vehicle more visible are considered "safer".

"Over the years there have been some studies of the most visible colors under normal driving conditions, and it should come as no surprise that fluoro or 'high visibility' orange is high on the top," the spokesman said.

"White is seen as a strong performer under most conditions and is a popular, more conservative choice."

What is the Most Expensive Car Color When It Comes to Insurance?

An exclusive analysis by Canstar's research analysts found the average annual car hull insurance premiums by color, based on quotes for a 40-year-old who lives in New South Wales and drives a 2020 Toyota Corolla Ascent Sport.

Research shows that the most expensive car color was black, which averaged $ 847, while white was the cheapest at $ 789.

Car insurance costs by color - graphic

New vehicle technology could mean that the paint color no longer has any influence on the price

Keith Foster, Senior Product Manager at Allianz Australia, told Canstar that the insurer does not offer premium discounts on certain car colors because advances in technology and the inclusion of things like daytime running lights have made such pricing factors "no longer valuable" in determining premiums .

"As newer cars come out, we see the incorporation of more active safety features like autonomous emergency braking, adaptive cruise control and blind spot monitoring as more effective in reducing collisions," said Foster.

“For example, I recently bought a new RAV4 that has some active collision avoidance systems installed, (and) it warns me when I drive out of a parking space into traffic, warns me about approaching a lane with a vehicle already there drive and can apply the autonomous emergency brakes if it detects a vehicle in front.

"This safety feature does more to prevent an accident than having a white car."

Other factors that can affect the car insurance price

Other factors that insurers take into account when calculating the amount of auto insurance are as follows, according to the ICA:

  • the type of insurance and deductible you have chosen, including the options you have added
  • the place where the car is parked overnight or during the day
  • the age of the driver
  • the driving report and the insurance history of the drivers
  • the type of vehicle insured (make, model, year)
  • the intended use of the vehicle (private or commercial use)
  • whether you have nominated a market value or an agreed value for your vehicle
  • whether changes have been made to the vehiclee

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