Updated on September 21, 2026 by Arshi Hossain | Originally written: May 19, 2021 by Liam Lahey 

No. The colour of your car does not directly affect your car insurance premium. Instead, insurers look at factors such as your vehicle’s make and model, claims history, theft risk, repair costs, and your driving record. Insurance experts and the Insurance Bureau of Canada (IBC) also confirm that car colour itself does not affect your premium.

When shopping for a new car or truck, colour is often one of the many decisions buyers face. Some prefer neutral shades that could be easier to resell, while others gravitate toward bright, bold colours that perhaps align with their personality.  

But could your choice of colour influence how insurers rate theft risk, accident rates, or resale value?

Does a red car cost more to insure?  

According to David Mayer, director of insurance at Rates.ca, the red colour myth likely stems from the sports car segment. “High-performance vehicles cost more to insure due to their engine size, performance specs, and claims history—and red is a disproportionately popular colour choice for those vehicles.” Think of the classic red Ferrari. “The higher premium got mentally attached to the colour rather than the car.”  

He adds that proprietary and publicly available data shows that vehicle colour has no bearing on insurance rates in Ontario. Colour is not included in insurance applications, and the Financial Services Regulatory Authority of Ontario (FSRA), which approves all rating variables used by insurers in the province, has never recognized it as a valid factor for pricing coverage.

“No actuarial data supports a link between paint colour and claim frequency or severity, so no insurer has ever filed for it,” Mayer says. 

What does your VIN tell insurers about your car?

A vehicle identification number (VIN) provides information on your car’s make, model, and year. That data helps insurance providers identify the exact vehicle and assess risk factors such as claims history, repair costs, and theft risk through the CLEAR (Canadian Loss Experience Automobile Rating) system. Based on CLEAR ratings, providers assign vehicle-specific rate groups for various types of coverage including Direct Compensation for Property Damage (DCPD), Accident Benefits, Collision, and Comprehensive.  

According to Mayer, colour has no role in pricing insurance. While a VIN can be linked to a factory paint code through manufacturer databases, vehicle colour is not a rating factor in Ontario. Carriers don't even ask for your car's colour when you apply for insurance.

Premiums are based on a vehicle's risk profile, not its appearance, he explains. A vehicle's make, model, trim, repair costs, theft history, and claims experience can all affect insurance rates. Based on these factors, two similar-looking vehicles can have very different premiums.

Related: Are car models made in Canada cheaper and better to insure? 

What factors affect your car insurance rate?

Insurance companies assess your risk as a driver when determining your premiums. Criteria providers consider includes:

Learn more: What are the top five factors that influence your auto insurance rate? 

Does car colour affect accident risk?

“Colour does have a modest, real-world effect on accident risk—but through visibility (particularly at dawn and dusk periods). This is not attributed to driver behavior and insurers do not price for it,” says Mayer.

In other words, any difference is tied to visibility in certain conditions, not driver behaviour, and isn't reflected in insurance premiums. 

Does car colour affect vehicle theft risk?

Unusual vehicle colours may appear less frequently in theft statistics, Mayer notes, but that's largely because they can be harder to resell or disguise after the fact, not because they're less attractive to thieves.

In Ontario, organized auto theft is typically driven by a vehicle's value and demand, with many stolen vehicles exported overseas. As a result, factors such as a vehicle's make, model, theft history, and market demand are far more important than its paint colour. Insurers assess theft risk at the vehicle level through systems such as CLEAR, not by whether a vehicle is red, blue, or silver.

When can car colour cost you more money?

While colour may not directly factor in your premium calculations, it can affect your wallet in three other ways:

• Custom paint and wraps count as modifications: They typically increase your vehicle's value, must be disclosed to your insurer, and can raise your premium.
• Premium finishes cost more to repair: Pearl, metallic, and tri-coat car paints need multi-stage refinishing after a collision.
• Resale value varies: CARFAX Canada confirms colour affects resale value in the Canadian market. Rare colours like yellow and orange depreciate less because sellers face little competition, while cars that are black and white compete with many similar used vehicles in the market.  

Can car colour increase repair costs?

Standard factory paint colours, including premium finishes, are already factored into a vehicle's insurance rating and generally don't affect what you pay.  

White, black, silver, and grey are generally easier and cheaper to match during vehicle bodywork because they're widely available from paint suppliers, Mayer says.

Custom colours, matte finishes, and multi-coat paints may add roughly $200 to $500 to repair costs, Mayer says. These finishes often require additional coats, custom mixing, or more labour to achieve a proper colour match. However, those costs are typically covered by collision insurance after you pay your deductible.

The main exception is an aftermarket or custom paint job. Mayer notes that modifications that increase a vehicle's value should be disclosed to insurers and are typically covered through a ‘custom parts and equipment endorsement’ which can increase premiums.  

Related: How to choose your auto insurance deductibles 

How can you lower your car insurance premium?

Shopping around to find the cheapest car insurance rate like you would for any other product can make a significant difference.  

You can pick the colour you want, knowing that whether your vehicle is jet black, canary yellow, cherry red, or hot pink is immaterial in insurance considerations. Rather, how you drive, where you are based, usage of your vehicle, and claim history are key variables for insurers setting your premiums.

If you drive defensively, avoid racking up traffic tickets, or don't get into collisions, insurance companies may most likely rate you as a good driver. A good driving record can help you secure the lowest possible car insurance premium.

Read next: Is 0% financing a good deal when buying a car?