Does your car insurer discriminate by your car colour?

About this post

September 22, 2010

RateCity's car insurance myth buster series reveals the truth about a range of common myths associated with car insurance.

Most people believe that red cars go faster, white cars are easier to see and black have poor visibility, especially at night. But when it comes to insuring your car, does the colour of your car affect the price of your premium?

Myth No.3: The colour of my car affects the cost of my premium.

True. According to research by RateCity, the colour of your car can affect the price of your premium for comprehensive car insurance. However, this depends on which car insurance company you choose as some such as Budget Direct and Virgin Money, don't ask for the colour of your car when applying for a quote, while others do. Of some of the ones that do ask, the difference in price between each colour is significant.

Put colours to the test

To test this myth, RateCity compared comprehensive car insurance quotes for a white, red and black car from Youi, NAB and Allianz using the same driver profile of a 30-year-old single male living in Sydney's north-west who drives a 2005 Toyota Corolla.

The results showed that out of the three colours, white cars were the cheapest to insure and black cars were the most expensive overall. Red and black were on par in the price stakes for two of out the three car insurers, with one proving it costs more to insure your car if it is black.

For instance Youi offered the cheapest quotes overall but they also had the biggest gap in price between a white and a black car, with a difference of almost $113, compared to NAB and Allianz who both had an average of $30 difference.

According to Youi the difference in price is due to the fact that darker coloured cars tended to be involved in more accidents, especially at dusk. This doesn't mean that painting your car white will mean you're a safer driver, it means that in comparison to other colours white stands out more and is seen to be less of a risk than darker colours.

Save on your car insurance regardless of colour

While the colour of your car may have an effect on the price you pay for your comprehensive car insurance you may still be able to save. For instance, when comparing the lowest and highest quotes, there was a price difference of $187 for white cars, $194 for red and $107 for black.

Compare car insurance quotes online to find a policy offering a premium with a lower price, regardless of what colour car you have.


Related Links

This is an information service. By browsing on the website and/or using our search tools, you are asking RateCity to provide you with information about products from multiple financial institutions. We will try to show you a range of products in response to your request for information. The search results do not include all providers and may not compare all features relevant to you, for further details refer to our FSCG. The rating shown is only one factor to take into account when considering these products. We are not a credit provider, and in giving you product information we are not making any suggestion or recommendation to you about a particular credit product. If you decide to apply for a product, you will deal directly with a financial institution, and not with RateCity. Rates and product information should be confirmed with the relevant financial institution, and you should review the PDS before you decide to purchase. See our terms of use for further details. This advice is general and has not taken into account your objectives, financial situation or needs. Consider whether this advice is right for you.