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.