Does Car Color Affect Insurance in Europe vs the U.S.?

A persistent myth in the automotive world is that red cars cost more to insure. While it makes for great small talk at the dealership, is there any truth to it—especially when comparing how car insurance is calculated in the U.S. vs. Europe?

Let’s break down how color does—or doesn’t—impact your premiums on both sides of the Atlantic.

The Short Answer: Color Doesn’t Directly Affect Insurance Premiums

In both the United States and Europe, insurance companies do not factor in the color of your car when calculating your premium. Instead, they focus on:

Vehicle make and model
Engine size and horsepower
Safety ratings
Cost of repairs or replacement
Age, driving history, and location of the driver
Claims history and annual mileage

That said, there are nuanced differences between how U.S. and European insurers assess risk—and how color can still matter indirectly.

How U.S. Insurers Calculate Risk (Color Isn’t One of Them)

In the United States, insurance pricing is driven by data and actuarial risk modeling. Companies use your:

ZIP code (risk of theft or collisions)
Age and marital status
Credit score (in most states)
Driving history and violations
Vehicle’s VIN, which includes safety features and repair cost data

What doesn’t matter? The literal color of your car.

Even if you drive a fire-engine red Mustang, it’s not the color that gets flagged—it’s the fact that a Mustang GT is a performance vehicle statistically associated with higher-speed accidents.

European Insurance: More Focus on Vehicle Specs and Safety Systems

In Europe, car insurance premiums are also based on empirical data, but the rating systems differ. Many European countries use a vehicle group or classification system—such as the UK’s ABI Group Rating—that ranks cars from 1 to 50 based on risk.

Key variables include:

Cost of parts and repairs
Vehicle security and anti-theft features
Accident performance and damage likelihood
Engine size and emissions rating

Color is not listed as a variable. However, some European insurers are experimenting with telematics (black box) devices to measure actual driving behavior in real time, especially for younger drivers.

Again: not color.

So Why Does the Color Myth Persist?

There are three main reasons:

Confirmation Bias: Red or bright cars are more noticeable and may get pulled over more often—but that’s a law enforcement pattern, not an insurance algorithm.
Visibility and Risk Perception: Some believe darker cars are harder to see in poor lighting, and lighter colors are safer. While this is partly true in studies, insurers haven’t directly priced it into risk models.
Resale Value & Repair Cost: Some specialty paints, like matte or pearl finishes, may cost more to repair—affecting claim payouts, but again, not base premium pricing.

Color Myths vs. Real Factors (Comparison Table)

Factor	U.S. Insurance Impact	European Insurance Impact	Notes
Car Color	❌ No	❌ No	Does not directly affect rates
Vehicle Type	✅ Yes	✅ Yes	SUVs and sports cars cost more
Driving Behavior (Telematics)	🚫 Optional	✅ Common for young drivers	Especially in UK and Germany
Anti-Theft Devices	✅ Yes	✅ Yes	Discounts often applied
Paint Repair Costs	✅ Claims Only	✅ Claims Only	Affects settlement, not premium

FAQs: Car Color & Insurance

Q1: Can I get a discount for choosing a safer color?

A: No. Neither U.S. nor European insurers offer color-based discounts. Safety features matter much more.

Q2: Are red cars more expensive to insure in any country?

A: No. There’s no country that formally includes color in its underwriting formulas. It’s a persistent but outdated myth.

Q3: Could expensive paint jobs raise my premium?

A: Only if you declare a modification or custom paint job. Insurers may raise your rate slightly if the paint adds to the car’s value or makes it more appealing to thieves.