.svg)
High-Risk Car Insurance
High-Risk Car Insurance
Written by
Kervin Mathew
Edited by
Ellie Garran
Reviewed by
Adrian BennettCompare car insurance policies the easy way
Save time and effort by comparing a range of car insurance quotes with iSelect
Who is considered a high-risk driver in Australia?
Long story short
If you’ve racked up offences or claims, you can expect to pay higher premiums
Young drivers can also be a higher risk to insure.
High-risk drivers may face additional excesses and cover exclusions
Some insurers may even refuse cover.
Safe driving, driving a low-risk car, and paying a higher excess may help lower your premiums
Comparing policies is the best way forward.
Who is considered a high-risk driver in Australia?
A high-risk driver can be a young or inexperienced driver or someone who’s had one too many mishaps behind the wheel. The definition can also extend to how many at-fault claims a driver’s had, or if they’ve earned a few double demerits over a long weekend or two!
If someone is deemed a high-risk driver, it’s likely because of one or more of the following factors.
Age and gender can add to a driver’s risk profile. Younger drivers and male drivers are considered riskier to insure due to the higher number of accidents they’re associated with.
How much you drive can indicate how much risk you’re exposed to as a driver. More time on the road can mean a higher likelihood of loss or damage to your car.
Your accident and claim history are two defining factors that insurers tend to consider when assessing your risk profile.
Traffic violations and fines related to speeding, running a red light, and dangerous driving can be a red flag for insurers.
Driving under the influence of alcohol or drugs is a particularly serious traffic offence that can mean a driver is considered as high risk.
Licence suspensions are a reason that insurers might question your credibility as a motorist.
Criminal convictions such as fraud or arson can leave a mark on your record, and insurers are likely to take note.
Can a high-risk driver get car insurance in Australia?
Yes, some insurers can provide cover for high-risk drivers, but there’s a catch. It’s likely to come with premiums that match the driver’s risk profile – the higher your level of risk, the higher the premium you pay.
For instance, a driver who’s had multiple traffic violations or licence suspensions might have to cough up the same amount for car insurance as, say, a driver under 25 years of age – which can seem rather unfair when all you did was breathe your first a few years later than others!
There’s also a good chance of cover being altogether denied or voided for drivers with very serious offences.
Do high-risk drivers have more restrictions on car insurance?
Higher premiums are one thing. An insurer can also apply additional cover restrictions to high-risk drivers.
Cover exclusions
Accidents related to reckless driving or driving under the influence may be excluded from a high-risk driver’s cover.
Additional excesses
A high-risk driver might need to pay an age excess, an inexperienced driver excess, or a driver history excess in addition to the standard excess on a policy.
Restricted benefits
Insurers might decide to limit benefits for high-risk drivers, such as a lower coverage for vehicle repair expenses.
How much is car insurance for high-risk drivers?
Let’s look at a big group in the high-risk driver spectrum – young drivers. Statistically, young drivers are more likely to be involved in cases of road trauma.1For more information, see Victoria Police – Young drivers For instance, Queensland’s young drivers are involved in around 30% of road fatalities while they make up only around 13% of the state’s licence holders – an unfortunate dark cloud over the Sunshine State.2Queensland Government – Young drivers
Looking at some of iSelect’s data from 2024, drivers aged 18 to 24 years paid the highest for car insurance, with young male drivers paying the highest overall.
What should high-risk drivers consider when buying car insurance?
One of the first things to consider is that it’s going to be slim pickings with car insurance options. Not all insurers are willing to cover a high-risk driver. So, it might be useful for a high-risk driver to put a lot of thought into the level of car insurance they need.
For instance, comprehensive car insurance is the highest level of car insurance you can get, and the most expensive type. On top of that, comprehensive insurance is likely to be even more expensive for a high-risk driver, if it’s available at all.
On the other hand, a third-party fire and theft or third-party property policy may be a better way to go, considering it’s less risky for the insurer and is on the cheaper side. But unlike comprehensive cover, these types of policies offer limited coverage for damage to the policyholder’s car. It’s like they say – you get what you pay for.
Helpful tip
True, it’s tougher to find affordable car insurance as a high-risk driver. That’s why it’s important to compare policies to see which one suits your situation. For example, as a high-risk driver, driving less might help reduce your exposure to the risks of being on the road. In that case, you could choose to filter your search by ‘pay as you drive’ policies. These are designed to bring premiums down if you agree to drive your car within a certain number of kilometres a year.
Adrian Bennett
General Manager for General Insurance
How can high-risk drivers reduce their risk?
No doubt, insurers can tighten the reins on high-risk drivers. But there are some ways said drivers can go the extra mile to try and lose the ‘high-risk’ tag.
Practice safe driving
By avoiding accidents and traffic violations, high-risk drivers can reduce their risk. Over time, insurers may take note and lower insurance premiums.
Choose a low-risk car
If you ignore cars with high-powered engines or extensive modifications and instead go for ones that are safer to drive, that might cut down your insurance costs.
Consider a higher excess
High-risk drivers who can afford to pay a higher excess effectively take on more of the risk with each claim. As a result, they might end up paying lower premiums.
Keep the insured vehicle safe
Cars with anti-theft devices such as immobilisers and alarms have a lower chance of being stolen, which means they’re a lower risk for insurers. Insurers may also look favourably on cars parked in a garage as it helps protect them from bad weather, theft or vandalism.
Frequently asked questions
Can a driver with a suspended licence get car insurance?
Yes. Some insurers may agree to issue car insurance to drivers with a suspended licence. However, because it’s risky for an insurer to do this, the driver may have to pay higher premiums and an additional excess on any claims they make.
Some insurers may decide to hold off on providing cover until the driver’s suspended licence is reinstated.
If a driver is applying for, renewing or extending their car insurance, they must let the insurer know if their licence has been suspended.
And remember, it’s illegal to drive with a suspended driver’s licence. But it’s still a good idea to keep the registered vehicle insured, just in case it’s damaged while parked or driven by another driver.
How long can a driver be considered a high risk to insure?
This is a tricky one to answer. It likely depends on the reason a driver is labelled as high risk in the first place.
- A younger driver might need to just wait it out until they’re older than 25 while keeping a clean driving history.
- Drivers with demerit points might need to wait three years until their points expire.
More serious offences, like driving with a suspended or disqualified licence or any criminal convictions, can stay on your record for 10 years or longer.
Can a high-risk driver be added to an existing car insurance policy?
Yes, but it depends on the driver’s level of risk. Adding a young driver or someone with a chequered driving history to an existing policy might mean additional excesses and a hiked-up premium.
On top of that, the way insurers handle demerit points and additional drivers can be different. So, it might help to look around and compare policies to see which one’s a good fit.
Start your search for car insurance
Whatever your level of risk, it always pays to compare car insurance so you can be sure you’re getting a policy that fits your situation. Use iSelect’s car insurance comparison tool to explore policies from our range of providers.
Get started on comparing car insurance policies!
Save time and effort by comparing a range of car insurance quotes with iSelect
iSelect General Pty Ltd (ABN 90 131 798 126. AFSL 334115) has partnered with Compare the Market (ABN 83 117 323 378. AFSL 422926) to compare a range of car insurers and policies. Not all providers in the market or all policies offered by the partners are compared and not all policies or special offers are available to all customers.
A number of our participating general insurance brands are arranged by Auto & General Services Pty Ltd ACN 003 617 909 on behalf of Auto & General Insurance Company Limited 111 586 353, both of which are related entities of iSelect Limited. Our relationship with those companies does not impact the integrity of our comparison service. Click here to view iSelect’s range of providers.
Any advice provided by iSelect is of a general nature and does not take into account your objectives, financial situation or needs. You need to consider the appropriateness of any information or general advice iSelect gives you, having regard to your personal situation, before acting on iSelect’s advice or purchasing any policy. You should consider iSelect’s Financial Services Guide which provides information about our services and your rights as a client of iSelect. iSelect receives commission for each policy sold that is a percentage of the premium or a flat fee. Ask us for more details before we provide you with any services.