Car paint colour is emerging as a distinct rating variable in parts of the Australian motor insurance market, with new analysis indicating that some hues can add more than $75 a year to comprehensive premiums, even when driver and vehicle profiles are otherwise identical.
A study by comparison site iSelect examined seven comprehensive motor insurers and found that four of them adjusted premiums based on exterior colour. The findings indicate that, alongside established inputs such as age, driving history, vehicle type, and garaging, paint pigment is being used in some insurers’ pricing models. The research found that darker colours tended to attract higher premiums, while white sat at the bottom of the pricing range on a like‑for‑like basis.
According to the iSelect analysis, white vehicles recorded the lowest average annual premium at $1,336.78. Black was the costliest colour on average, with premiums $76.73 higher per year than for white vehicles – an increase of about 6% for the same risk profile. For a black Toyota Corolla, the quoted premium was up to 5.7% higher than for an equivalent white Corolla, assuming the same driver characteristics and other rating factors.
A group of mid‑ranked colours – grey, gold, brown, purple, and green – carried an average loading of $61.89 compared with white, or around 5%. Blue, red, maroon, and orange formed the next tier, at $54.53 more than white. Silver sat slightly below that at $52.92 above white. Beige recorded an average premium difference of $45.71 per year, roughly 3% more than white models. iSelect comparison expert Sophie Ryan said the pricing gaps reflected how some insurers use claims experience when calibrating their rating engines. “The premium you pay is influenced by a range of factors, but usually historic claims data plays an important role in these algorithms. If darker-coloured cars are more likely to be involved in accidents due to visibility issues on dark or rainy days, some insurers may account for the higher risk with a higher premium,” Ryan said, as reported by Drive.
Ryan said colour-based pricing does not appear to be driven solely by visibility concerns. For certain colours, the cost and availability of replacement parts may also be relevant. “Some of the colours were not necessarily costly due to their low visibly, but because of their scarcity. If you’ve picked a less-common colour, like gold, orange, or beige, for example, those parts may be harder to come by and therefore harder to replace,” Ryan said. At the lower end of the pricing spectrum, the analysis found that three colours matched white on average: yellow, turquoise, and an “other” category. All four sat at $1,336.78 per year in the sample, with no additional loading relative to white.
However, the study also indicated that colour is not a universal rating factor across the market. Three of the seven insurers surveyed did not vary their quoted premium at all based on paint colour. “Three insurers we analysed did not apply a change to their quoted premium based on car colour, so it’s really worth looking around for those policies, especially if you’ve picked a dark or niche paint. And while a $76 price gap may seem small, these savings can make a big difference when you know you’ll be driving your car for years,” Ryan said.
While the iSelect findings highlight colour as a secondary rating input for some carriers, broader market data suggest that vehicle type and market penetration remain central to how Australian motor portfolios are structured and priced. Industry figures from Youi Insurance indicate that SUVs are now a dominant class of insured vehicles. In 2025, SUVs accounted for 44% of all car insurance quotes written by Youi, up two percentage points from 2024 and broadly consistent with new‑vehicle sales trends. Medium SUVs from major brands make up a substantial share of the insurer’s insured fleet and claims. Mazda’s CX‑5 recorded 22,742 sales in 2025, Mitsubishi’s Outlander reached 22,459, and Nissan’s X‑Trail logged 15,708 sales. Taken together, these three models represented about 40% of Youi’s motor insurance claims over the year.
Toyota’s LandCruiser and RAV4 – the latter being Toyota’s highest‑volume model in 2025 – also appeared among Youi’s most frequently insured vehicles. Subaru’s Forester, which posted 15,179 sales between January and December 2025, was similarly prominent in the insurer’s SUV book. According to Youi, the most commonly insured SUVs in 2025 included the Mitsubishi ASX, Mazda CX‑3, Mazda CX‑5, Subaru Forester, Toyota LandCruiser, Mitsubishi Outlander, Toyota RAV4, Kia Sportage, Hyundai Tucson, and Nissan X‑Trail. The insurer notes that the list is not ranked by volume and is presented as a general overview rather than an indicator of relative premium levels.
For insurers and intermediaries, the interaction between colour-based pricing and the concentration of risk in certain SUV and passenger models has implications for risk selection, portfolio mix, and communication with customers. The iSelect and Youi data together indicate that primary rating factors such as driver age, claims history, and vehicle class remain central, while secondary characteristics like paint colour and colour rarity are incorporated into pricing by some carriers. At the same time, the high volumes of a small number of models produce extensive loss data, which insurers can use when setting or revising rating relativities. For brokers and direct writers operating in personal motor lines, these patterns may help explain premium movements when clients change vehicles or specifications. In particular, shifts from lighter to darker or less common colours, or from lower-volume to high-volume models, may contribute to incremental changes in premium outcomes under some insurers’ rating approaches.
