1. A vision system for a vehicle, said vision system comprising: a color camera disposed at a vehicle and having a field of view exterior of the vehicle, wherein said color camera comprises an imaging array having a plurality of photosensing pixels and at least one color filter disposed in front of at least some of said photosensing pixels; an image processor operable to process image data captured by said color camera, wherein processing of captured image data by said image processor comprises utilization of a color correction algorithm that includes a color correction matrix; wherein said color correction algorithm comprises a color correction matrix algorithm and a histogram algorithm to determine a color correction for the captured image data; and wherein an output of said color correction matrix algorithm is used as an input to said histogram algorithm and an output of said histogram algorithm is used as an input to said color correction matrix algorithm.