Does your car insurer discriminate by your car colour?

Does your car insurer discriminate by your car colour?

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.


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Learn more about car insurance

Does insurance cover a stolen car if keys were in the car?

A car insurance policy that covers the theft of your car, such as third party fire and theft insurance, usually covers a stolen car, even if the keys were in the car’s ignition.

However, your insurer may deny the claim if you live in an area where there have been several car robberies reported recently. They will see you leaving the keys in the car as a case of negligence. In such cases, your insurance provider may even expect you to have installed anti-theft security measures in your car. 

You may need to confirm whether or not you left your keys in your car, and if they had been stolen or misplaced, before filing your car insurance claim. The loss or theft of your car keys may be covered by a comprehensive car insurance policy, but usually as an optional item.

If you can confirm that your car keys were stolen, mention this in your claim as this will help establish that your car was not stolen as a result of your negligence.

Can you insure your car for 6 months?

Most Australian insurers won’t offer you a 6-month car insurance policy, so you may need to buy a policy that covers your car for damages and cancel it after six months. You will need to purchase comprehensive car insurance to protect your car from accidental damage, theft, vandalism, or natural disasters.. 

Consider checking whether your 6-month comprehensive car insurance will cost more if you pay monthly or six-monthly premiums instead of a one-time annual premium. Another question to ask the insurer is whether you’ll need to pay administration or cancellation fees when you cancel the policy.

Alternatively, you can look for a suitable ‘pay as you drive’ car insurance policy, which usually offers you the coverage of a comprehensive car insurance policy but only requires you to pay for the distance driven. Such a policy may not be the ideal 6-month car insurance plan as it is based on how much you drive rather than for how long. If you need to drive a lot, you may end up paying more than you’d pay for regular car insurance.