The colour of your car affects the insurance premium you pay
Source: https://www.comparethemarket.com.au/news/how-your-car-colour-could-be-driving-up-your-premium/
Did you know that the darker colour cars attract a higher premium from your insurance company? This phenomena is known as “colour premium” and has been steadily increasing over the last few years. In the past, a product would come with many colours and well, you get to choose whichever colour that you like- no extra cost. Now, different colours attract different prices. Everything from kettles, toasters, shoes and cars.
The good folks at Compare the Market has crunched the numbers- evidence base, and found that car insurers do charge extra based on the colour of your car. They found that, just by changing the colour of your car, and keeping all the other details the same (ceteris paribus in economic jargon)- the price of the car insurance changes. Of course different insurance companies have different policies. They compiled the results and got an average of how much extra do you have to pay just for the change in colours.
The results: Lighter colours resulted in cheaper premiums, whereas darker colours were more costly. The table below summarises their findings in order from cheapest to most expensive.
| Car Colour | Average price increase compared to white colour (cheapest) |
|---|---|
| White | N/A |
| Yellow & Turquoise | 2.96% |
| Beige | 6.46% |
| Blue, Red, Maroon, Orange | 7.23% |
| Silver, Grey, Green, Gold, Brown, Purple | 7.89% |
| Black and Other colours | 8.72% |
So, there you go. Some evidence base decision making here for next time when you’re in the market for a new car. You would be eating into the household budget just because of your colour preference. Check out their article for a more detailed read.
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