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Does Car Colour Affect Your Car Insurance Premium?

May 19, 2021
3 mins
A red mustang in a parking lot

How important to you is the colour of a new car or truck you’re buying? Will you get a cheaper car insurance premium if it’s a lighter shade versus a bright, bold colour?

Since we’re on the topic, have you ever noticed how most vehicles are either white, black, grey or silver? Only one in four are red, blue, brown or green. Is it a coincidence? Or is it because Canadians tend not to be terribly adventurous when it comes to selecting a car’s colour?

Admittedly, we Canucks do tend to stick with what’s tried and true most times and we don’t like to make a fuss. That doesn’t make us dull, it makes us dependable, and there’s nothing boring about dependability. But one can’t help but wonder if it’s because we secretly enjoy making it difficult to find our cars quickly in a crowded parking lot.

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Choosing the right colour for your vehicle

The truth is it doesn't matter to an insurance company if your car is blue, red, green, silver, white or black. You know what "they" say about red cars costing more to insure? It’s a car insurance myth that never goes away.

While colour can be a powerful communication tool and it may even influence your mood, it will not influence your auto premium. However, a vehicle’s colour could have an impact on its resale value. According to one study, more obscure colours tend to hold their value better than common and popular colours.

What factors affect the car insurance rate you pay?

Insurance companies assess the risk you pose as a driver when determining your auto rate. Among the criteria they consider includes:

  • Where you live
  • Your age and gender
  • The type, but not colour, of the vehicle you drive
  • How many kilometres you drive annually
  • If you use your vehicle to commute to work or not
  • Your insurance history
  • Your driving record including any tickets or collisions

What is the best way to get cheap car insurance?

Shopping around to find the cheapest car insurance rate like you would shop around for any new product can make a significant difference. After all, if you were looking to purchase a new smartphone, would you visit only one store and buy the first one you saw at any price without knowing what features it has or doesn’t have? Of course not. You’re a savvy consumer living in the digital age.

So, be as bold as you wish picking the colour you want your new wheels to be. It doesn’t matter if your vehicle is jet black, canary yellow, cherry red or hot pink. What does matter is how you drive.

In other words, if you drive defensively, and avoid racking up traffic tickets or getting into collisions, you’re more likely to be seen as a good driver by insurance companies. That’s what will help you get the cheapest premium you can.

Liam Lahey

Liam Lahey is a versatile marketer with experience as a staff and freelance writer for many business and technology publications and newspapers. He previously worked as the editor and media spokesperson for RATESDOTCA, handling home, auto, and travel insurance topics.

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