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5 minute read Published on Jun 13, 2026 by BrokerLink Communications
You’ve probably heard people say that some car colours are more expensive to insure than others. But is it true? In this guide, we’ll go over why colour itself isn’t used by insurance companies to calculate your premiums, explore special scenarios when it may matter indirectly, and highlight the actual factors that affect your car insurance premiums, so you can get a better idea of what to expect when purchasing coverage.
The short answer is no. This common myth has been around in the insurance industry for decades and is largely because people associate bold colours (especially red cars) with speeding, sports cars, and higher-risk drivers (you can thank Fast and Furious for that one). Others think that bright colours draw more attention and might increase accident risks. But this is factually untrue. According to the Insurance Bureau of Canada (IBC), colour is not used in rating insurance premiums, so you can breathe a sigh of relief.
Car insurance companies in Canada determine insurance rates using risk-based models. These models focus on factors like:
Driver behaviour and driving history.
Vehicle type, make, model, year, and repair costs.
Theft risk and local traffic patterns.
See how car colour isn’t mentioned? If you’re still unsure why you’re paying a higher premium for your car insurance, check your rates with BrokerLink today.
Now, let’s get one thing straight. There are some indirect cases where the colour of your car can indirectly affect your insurance premiums. For example, if you pay for a custom paint job, purchase expensive finishes, or a vehicle wrap that increases your car’s resale value and repair bills, then you can expect your insurance rates to increase, as confirmed by Purr.ca. Just remember that this is tied to your vehicle’s value, not the colour of your car.
So, when it comes to purchasing coverage, it’s up to you to decide whether your high-end custom paint job is worth the added cost in insurance. Another scenario involving your car colour that may also affect your insurance premiums includes:
Interestingly enough, bright cars may be less of a theft risk than you may think. According to Canada Drives, thieves frequently favour neutral colours like black, white, and grey since they are less visible when driving in traffic.
While the colour of your vehicle won’t directly impact the cost of your insurance coverage, the price of your premium will be determined by the following:
Your driving record is probably the biggest factor that impacts auto insurance rates in Canada. Insurance companies check your driving record to assess your risk.
If you have several infractions—like speeding tickets, at-fault accidents, or DUI charges—your rates will likely be much higher than someone with a clean record. That’s why it’s important to keep a clean driving record by following traffic laws and having good driving habits.
The year, make, model, and trim of your car all play a role in determining your premium. Luxury or sports cars tend to be the most expensive to insure since they cost more to repair or replace.
In contrast, if your car is loaded with safety features, that could help lower your rates. Insurers also consider things like theft rates, collision stats, vehicle recalls, and repair costs for your specific vehicle to assess the overall risk. You can use the Insurance Bureau of Canada’s How Cars Measure Up report to determine the rate of claims filed under the most popular car models on the market between 1997 and 2025.
Insurers also consider traffic congestion in your area, the number of accidents, crime rates, and even the weather. Drivers in rural areas like Red Deer generally pay lower premiums because there’s less traffic and a lower chance of accidents, compared to those living and driving in a city like Vancouver or Toronto. However, if you live in a rural neighbourhood where car theft is common, your rates could go up.
Your annual mileage is another key factor insurers look at when calculating your premium. As you might guess, driving less can work in your favour. From an insurer’s perspective, the less you’re on the road, the lower your chances of getting into an accident and filing an insurance claim.
Those who choose more coverage and higher coverage limits will pay higher insurance rates than motorists who opt for basic insurance policies with minimum limits.
Choosing a higher deductible for your insurance policies, like comprehensive and collision coverage, can lower your insurance rates. Choosing a lower deductible, in contrast, increases your rates.
No one wants to pay an outrageous amount for auto insurance. Luckily, there are ways you can keep your car insurance premiums reasonable:
When you’re buying a new car, focus on opting for a model with high safety ratings, lower repair costs, and lower risk for theft. Although the price of your car insurance isn’t determined by vehicle colour, factors like vehicle type will.
When you’re requesting a quote, make sure to provide accurate information about your driving record, annual mileage, location, and vehicle details. Not all insurance companies price risk factors the same way. You can benefit from shopping around and comparing quotes, so you can make an informed decision about your coverage.
If your car has a custom wrap or paint job or other modifications, make sure to inform your insurance company. Providing inaccurate information could lead to your insurance claims being denied in the future and allows your insurer to recommend add-on policies like comprehensive, collision, and more.
Don’t let car colour influence your decisions. Focus on controllable factors like avoiding speeding tickets by safe driving, choosing the right insurance policies and coverage levels, avoiding filing claims, and opting for a higher deductible. When in doubt, reach out to a BrokerLink advisor to review your current auto insurance policies and customize a plan that remains within budget.
Whether you drive a red car, a yellow, a purple, or a pink vehicle, insurance companies won’t use your vehicle colour to determine your rates. Focus on factors you can control, like your driving record and coverage levels, by doing your part to remain a safe driver behind the wheel. Contact BrokerLink to review your policies and get a free quote. Make sure you’re paying for real risk, not myths!
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No. Red vehicles do not cost more to insure.
Yes, a custom paint job can increase your premiums, as this type of aftermarket modification typically increases your vehicle’s value. Make sure you disclose this information to your insurance provider, so they can recommend the right insurance plan that ensures expected repairs or replacements are fairly compensated.
Canada Drives indicates that vehicles painted in neutral colours are actually at a greater risk of theft compared to bright colours, given that they tend to blend into traffic better, making them ideal for thieves who want to keep a low profile.
If you have any questions, contact one of our local branches.
