Insurance costs in Australia are on the rise. According to the Australian Prudential Regulation Authority (APRA), Australians paid an average of $929 per year per policy in the 12 months leading up to September 2024. Meanwhile, the Australian Automobile Association says the average insurance cost across capital cities is $2,735.85. Sydney has the highest average at $3,691.48, while Hobart has the lowest at $2,152.28.
And while factors like vehicle type and driver behaviour can also affect costs, did you know that colour can sometimes drive up insurance premiums?
How Car Colour Affects Fleet Insurance Costs
Colour isn’t always the first thing that comes to mind when it comes to insurance costs. However, certain insurers can charge more for certain hues than others.
According to Compare the Market, insurers tend to charge up to 8.72 per cent higher premiums for vehicles for the same make and model of a vehicle when they’re a darker colour.
“While it can be surprising to see such large discrepancies between some insurance policies based purely on colour, the fact is that some colours may make a vehicle more susceptible to theft or being in an accident and in turn, increase the risk of you needing to claim with your car insurer,” said Compare the Market Economic Director David Koch
“For example, darker-coloured cars may be harder to see at night or during storms, which could result in more crashes and potentially drive-up prices. In other instances, novelty colours, such as gold or even purple, may be more challenging to repair if the bodywork is damaged.
“These findings are just a great insight into how differently insurers can calculate risk based on historical data, and it’s something to keep in mind when you’re looking at your car insurance renewal.”
It should be noted that not all insurers adjust their pricing based on colour. Some do have a flat rate across all car colours.
| Price | Car Colour | Average price increase with insurers that change pricing compared to a white car | Average price of policy with insurers that change pricing based on car colour | Average price of policy with insurers who have a single price for all car colours |
| Cheapest | White | N/A | $1,038.74 | $1,815.76 |
| Yellow and Turquoise | 2.96% | $1,069.49 | $1,815.76 | |
| Beige | 6.46% | $1,105.85 | $1,815.76 | |
| Blue and Red and Maroon and Orange | 7.23% | $1,113.81 | $1,815.76 | |
| Silver and Grey and Green and Gold and Brown and Purple | 7.89% | $1,120.70 | $1,815.76 | |
| Most expensive | Black and Other | 8.72% | $1,129.34 | $1,815.76 |
Other Key Factors That Influence Fleet Insurance Costs
Car colour is just one part of the equation. Other factors that fleet managers should consider include:
- Driver training – Implementing safe driving programs can lower accident rates and premiums.
- Vehicle tracking and telematics – Monitoring driving behaviour helps reduce risky driving and improves insurance rates.
- Regular maintenance – Well-maintained vehicles have fewer mechanical failures and accidents.
- Fleet size and structure – Larger fleets may qualify for volume discounts, but they also pose higher overall risk.
Fleet operators can reduce costs by optimising vehicle selection, maintaining safe driving policies, and negotiating with insurers for better rates.
Final Words
Fleet insurance costs depend on multiple factors, and vehicle colour plays a surprising role. For fleets looking to optimise costs, it might be worthwhile to consider vehicle colour along with safety features, telematics, and driver training can lead to significant savings. Comparing insurance providers and policies regularly is also essential for securing the best rates.
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