1. A method for processing color image data captured by a vehicular camera disposed at a vehicle to correct for color error, said method comprising: providing a color camera comprising an imaging array having a plurality of photosensors; disposing one or more spectral filters at or in front of photosensors of the plurality of photosensors of the imaging array; disposing the color camera at a vehicle so as to have a field of view exterior of the vehicle; providing an image processor; capturing image data with the color camera; providing captured image data to the image processor; processing image data captured by the color camera via the image processor; wherein said processing of image data comprises processing via an algorithmic loop that corrects color variation due to lighting conditions so that images derived from captured image data are color corrected; and wherein the algorithmic loop comprises processing image data in a color correction loop for color correction.