Does the Car Colour Affect Insurance Premiums in India?
No. In India, a car's colour does not directly affect your insurance premium. Insurers look atRead more
Why Don't Insurers Consider Car Colour While Calculating Insurance Premium?
For third-party insurance, the price is fixed by IRDAI, and it depends only on your car's engine size (cubic capacity) or battery capacity in case of an electric vehicle. The colour of the car has no role here at all.
Similarly, for comprehensive car insurance, insurers look at these parameters:
- Make and model of the car
- Engine capacity
- Car's age
- Safety features
- Your driving record
- Insured Declared Value (IDV)
So if you're choosing between a red car and a white car of the same model, your insurance premium will be the same.
When Can Car Colour Indirectly Affect Your Insurance Premium?
A vehicle's colour may affect your car insurance premium in the following indirect ways:
-
Demand & Resale Value
Cars of some colours sell better than others. If a colour is in high demand, that model may cost more to buy. A higher car price means a higher IDV. And a higher IDV means a higher premium. This has nothing to do with colour itself. It's about price.
-
Perceived Accident Risk
Cars with bright colours like red and yellow are more visible on the road. Some believe they attract more attention. This could slightly raise the perceived risk in some cases. But this is not a rule insurers officially follow in India.
-
Theft Risk
Common car colours like black, white, and silver are easier to resell. This can make them a bigger theft target in some cities. If your car is stolen more often, insurers may see it as a higher risk. But this effect is small and varies by location.
What Actually Decides Your Car Insurance Premium?
Here's what really matters for insurers when they calculate car insurance premiums:
- Car's IDV: A car with a higher IDV means a higher premium.
- Engine (cubic capacity): Bigger engines cost more to insure.
- Car's age: Older cars usually get lower premiums but higher wear-and-tear costs.
- City of registration: Metro cities often have higher premiums due to traffic and theft risk.
- No Claim Bonus (NCB): A claim-free history earns you an NCB in car insurance. It is a discount on your own-damage premium, which increases for every consecutive claim-free year.
- Add-ons chosen: Zero depreciation, engine cover, and other add-ons raise the cost.
- Modifications: Performance upgrades or paint jobs raise the premium.
Do Custom Paint Jobs Affect Car Insurance Costs?
Yes. When you get a custom paint job, wrap, or graphics done to your car, its IDV increases, and consequently, the cost of your car insurance. Here's how:
| Scenarios |
Impact on Car Insurance Premium |
| Factory colour (White, Black, Red, Blue, etc.) |
No |
| Repainting the car in another standard colour |
Usually, no |
| Premium custom paint that increases the car's value |
May require declaring to the insurer and could affect coverage |
| Paintwork as part of major vehicle modifications |
May indirectly affect the premium or coverage, depending on the modification |
What to Do If You Repaint Your Car?
If you decide to change your car's colour later, you must follow these rules:
- Update the RTO: Go to the Regional Transport Office and update the new colour on your Registration Certificate (RC).
- Tell Your Insurer: Inform your insurance company right away.
The insurer may reject your car insurance claim in case of an accident if you have not informed them about the colour change.
Tips to Save on Car Insurance, Regardless of Colour
Irrespective of your car's colour, here are some useful tips to save on your car insurance premium:
- Compare quotes from multiple car insurance companies before buying or renewing a policy.
- Choose a higher voluntary deductible
- Avoid unnecessary add-ons you won't use
- Maintain a clean driving record to build your NCB
- Install anti-theft devices for possible discounts
- Renew your policy on time to avoid losing your NCB benefits
