Young drivers are often charged higher premiums and an additional excess for car insurance
It’s important to talk to your insurer before assuming you are covered under your parents’ policy – there may be conditions to comply with, or a higher premium to pay
Some insurers charge more than others for young drivers, so it pays to shop around – and check CHOICE reviews
And, unlike other insurance comparison websites, we don’t get paid by any of the insurers we’re comparing. CHOICE is nonprofit, so your membership fees help us fight for consumer rights, and empower you to get the best products.
What kind of cover should young drivers have?
In addition to the the compulsory third party insurance you need to register your vehicle, there are three levels of car insurance you can get:
Third party property: cover for damage to other people’s cars and property.
Third party fire and theft: cover for damage to other people’s cars and property. Plus, cover for your car for theft or fire damage.
Comprehensive car insurance: cover for damage to other people’s cars and property. Cover for your car for theft, fire, natural disasters, vandalism and accidents, even if you’re at fault. Comprehensive insurance covers a range of additional costs not included in third-party policies, such as a hire car while yours is being repaired. It’s the most expensive option of the three.
How much does car insurance cost for young drivers?
Generally, the younger you are and the less driving experience you have, the more expensive your comprehensive car insurance premium will be and the higher the excess you’ll be required to pay if you make a claim.
Car insurance premiums get cheaper the older you are. For example, the average premium quoted for drivers under 21 is $3609, while those aged 21 to 24 will pay an average of $2556. The average drops to $2099 for 25-year-old drivers.
Premiums are also more expensive for males under 25 ($3075) compared with female drivers of the same age range ($2521).
Location
Average premiums for young drivers aged 25 and under also vary depending on which state you live in.
Text-only accessible version
Average premiums for young drivers, by state This infographic shows a bar chart with the average premiums for drivers under the age of 26, by state. The average premium for the Australian Capital Territory is $2161. In New South Wales the average is $3362. In the Northern Territory the average is $2913. In Queensland the average is $2554. In South Australia the average is $2612. In Tasmania the average is $2088. In Victoria the average is $3614. In Western Australia the average is $2597.
Note: Average premiums based on a market-representative sample of 27,396 quotes collected in January 2026. Customer profiles varied by vehicle, address, and driver details, with the primary driver aged 25 and under. Quotes were collected at the insurers’ default excess, then adjusted to a standardised excess to permit like-for-like comparisons.
Cheapest insurers for young drivers
If you’re under 25 and driving your own car, you may want only a third-party car insurance policy until you have some more driving experience and qualify for cheaper premiums. But, if you drive an expensive car and want to take out comprehensive car insurance, the cheapest insurers for young drivers on average across Australia are:
Our price ratings are based on average premiums. They may not be reflective of your situation. We recommend you get at least five quotes, starting with your regular insurer, and look at policy inclusions, features and excesses.
How does CHOICE calculate premiums for car insurance?
CHOICE obtains quotes from a third party that collects and sells pricing data to the insurance industry.
Price scores are calculated using a sample of over 27,000 individual quotes, using a market-representative set of 1,311 customer profiles in which the main driver is aged 25 or younger. Quotes were collected during January 2026.
Note: Not all companies provide quotes. IAG (NRMA, RACV, Rollin’ and others) Auto & General (Budget Direct, ING, Qantas, Virgin Money) and Youi don’t currently participate.
How to save on car insurance for young drivers
Premiums are more expensive for male drivers under 25 than for female drivers of the same age.
Shop around – premiums for listed young drivers and young drivers driving their own car can vary widely.
If you have an accident driving your parents’ car, you may be up for a large additional excess. There are a number of excesses that may apply, depending on your policy, including:
Basic excess: the cost of making a claim, selected when you buy the policy. In most cases the excesses listed below are charged in addition to this.
Age excess: applies to drivers up to 25 years old (sometimes 35!), and can cost from $300 to $2000. Some insurers decrease the excess as you age. Learner drivers typically don’t pay the age excess.
Inexperienced driver excess: applies to drivers too old for the age excess, but who have not held their full license for a minimum period. This is usually two consecutive years, sometimes five. This can range in cost from $400 to $1500.
Unlisted driver excess: can be applied regardless of age or driving experience. This is often the most expensive additional excess charged by insurers, ranging from $400 to $3000. Some insurers will also slug you with a higher age or inexperienced driver excess if you’re not listed on the policy.
Learner driver excess: this type of excess charge is quite rare, but can be an $800 charge on top of the basic excess. Some insurers apply the excesses that would have been charged if the instructor were behind the wheel.
Some insurers will give you a discount if you do their skilled driver training course.
Learner drivers
It’s important that parents talk to their car insurer first to make sure their car is covered before they use it to start teaching a learner driver.
Some car insurers, such as Budget Direct, require you to add a learner driver to the policy, while others, like NRMA, AAMI and GIO, don’t require any changes to your car insurance for supervising a learner driver.
But, if the learner driver is the registered owner of the car, the car insurance policy needs to be in their name.
P-plate drivers
If you’re a P-plater and only drive your parents’ car occasionally, check with the car insurer if you’re covered or whether you need to be listed on the policy.
If you have your own car or are the main driver of a parent’s car, then the car needs to be insured in your name. If you insure it in your parents’ name to save money, this can technically be seen as insurance fraud, meaning your car insurance policy could be invalid and your claims might be knocked back.
Young driver road crash statistics
Sadly, young drivers (under 25 years) represent one-quarter of all Australian road deaths, despite only making up 10–15% of the licensed driver population. And the youngest road users are most at risk. A 17-year-old driver with a P1 license is four times more likely to be involved in a fatal crash than a driver over 26 years.
Speeding is the main cause of road fatalities of young drivers.
Daniel Graham is a Senior data analyst in the Insurance and utilities team. He maintains the CHOICE database of general insurance products and is the resident expert in insurance pricing. He covers home, car, pet and health insurance.
Previously, Daniel has worked as a finance journalist and data journalist in the investigations team, focusing on insurance stories and comparisons.
Daniel has a Graduate Diploma of Journalism from UTS and a Bachelor of Arts from the University of Sydney. He is RG146 compliance certified to provide general advice in Tier 2 General Insurance and is a member of the Media, Arts and Entertainment Alliance. LinkedIn
Daniel Graham is a Senior data analyst in the Insurance and utilities team. He maintains the CHOICE database of general insurance products and is the resident expert in insurance pricing. He covers home, car, pet and health insurance.
Previously, Daniel has worked as a finance journalist and data journalist in the investigations team, focusing on insurance stories and comparisons.
Daniel has a Graduate Diploma of Journalism from UTS and a Bachelor of Arts from the University of Sydney. He is RG146 compliance certified to provide general advice in Tier 2 General Insurance and is a member of the Media, Arts and Entertainment Alliance. LinkedIn
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