There is good snippet for changing cursor color:
if &term =~ \"xterm\\\\|rxvt\"
\" use an orange cursor in insert mode
let &t_SI = \"\\]12
"set cursorline
set noshowmode
"Enable CursorLine
set nocursorline
"Default Colors for CursorLine
hi CursorLine cterm=NONE ctermbg=NONE ctermfg=NONE
"Change Color when entering Insert Mode
autocmd InsertEnter * set nocursorline
"Revert Color to default when leaving Insert Mode
autocmd InsertLeave * set nocursorline