Car Insurance for P-Platers

Will my parents’ Car Insurance cover me? 

While sharing a car with your parents might mean a few less road trips with friends, it could make Car Insurance a little simpler. This is because you may be already covered by their policy or just need to be added to it. FYI though, their insurer might charge a higher premium for any drivers under 25 and an increased excess. In the spirit of ‘sharing is caring,’ you might want to check in with your folks about splitting the premium, along with the car. 

However, if you have your own set of wheels, you might want to pair them with your own Car Insurance too. You could even add your parents or other regular drivers to the policy to avoid an unlisted driver excess if someone else is driving your car and has an accident. 

What types of Car Insurance can P-platers get? 

Luckily, you can enjoy the same types of Car Insurance as open license drivers. This includes: 

• Compulsory Third Party Insurance (CTP): A requirement for all cars in Australia, this helps cover the costs and compensation for other parties injured or killed due to your vehicle. 
• Third Party Property Insurance (TPP): If you cause an accident, TPP could help cover the damage to other parties’ property and vehicles (but not your own) 
• Third Party Fire and Theft (TPF&T): Building on TPP, this type of policy also covers damage to your car from fire or theft. 
• Comprehensive: The top tier of coverage, this policy can cover you, your car, and other parties and property if you have an accident. You may also be able to add extras like roadside assistance to really get the most from your policy. 

Helpful Tip:

For novice drivers on a tight budget, Third Party Fire and Theft Insurance can strike a good balance between coverage and affordability, especially if the car you’re driving is fairly affordable. But remember that these policies won’t usually cover your car for collisions or storm damage — and even though the car may be cheap it can still cost a similar amount to repair as a more expensive car. 

Toby Hagon

Motoring Journalist

What doesn’t Car Insurance cover? 

Whether you pick Comprehensive Car Insurance or stick with CTP, there are some things you’ll likely need to accept your Car Insurance just won’t cover. This includes: 

• General wear and tear, along with the depreciation of your car 
• Mechanical breakdowns, including engine failure, unless caused by an accident or insured event  
• Modifications to your car — even legal ones — unless you tell your insurer about them 
• Breaking road rules, like drink driving, overloading your car or letting unlicensed drivers drive 

You could get a better idea of what your Car Insurance covers by checking out the Product Disclosure Statement (PDS). Remember too that even if your Car Insurance doesn’t cover you for absolutely everything under the sun, it can still definitely be worth it. For instance, while you can’t get coverage for a mechanical breakdown, like your radiator giving out while you’re on the freeway, having roadside assistance included in your policy could make it easier to get to the mechanic and sort things out. 

Does Car Insurance cost more for P-platers? 

P-platers tend to be younger, less experienced and higher-risk drivers than others on the road. In fact, it’s in those first six months or so that newly licensed drivers are most likely to be in an accident.¹Transport Accident Commission – P plate drivers So, with higher risk comes the increased likelihood that your insurer will have to pay out — that’s how you end up with higher premiums. However, as you get older and create a safe driving record that premium will likely come down. 

Insurers take more into account than your age and P plates though to calculate your risk. So, your premium may change depending on things like your gender; your car, where you keep it and how you use it; and your chosen optional extras. 

How could I save on Car Insurance as a P-plater? 

Driving a car can be expensive, from rego to filling up at the servo, so it might really pay to look for ways to drop your premium.  

You could try: 

• Keeping your car in a locked garage when you’re not driving it 
• Picking a higher excess 
• Being a safe driver to build that good history and attract no-claims discounts 
• Choosing a different payment schedule, like going from monthly to annual 
• Being strategic about your extras 
• Comparing policies to find one that offers you better value, including at renewal time 

If you’re in the market for a new car, choosing carefully may also help lower your Car Insurance premiums. For instance, a luxury car can come with more expensive premiums. That’s because they can cost more to repair than a cheaper car — and that means your insurer would need to pay out more.  

It’s a similar story for cars that are regularly targeted by thieves or have a lower safety rating. They come with more risk to your insurer, so your premiums go up. 

What Car Insurance mistakes should I avoid as a P-plater? 

While making mistakes can be a great way to learn, it’s not always the most cost-effective approach. To help you and your hip pocket out, you might want to keep in mind: 

• Choosing cover that suits your vehicle: Even if you love your car, it might not be worth going all out on top-tier insurance  
• Listing all drivers: Your insurance might not cover drivers who aren’t named on your policy, so if mates or family members will be driving your car, it could be worth getting them added 
• Checking any car loan requirements: If you got a little financial help to buy your car, your contract may specify the level of Car Insurance needed 
• Keeping your insurer in the loop: If your circumstances change, like if you move house or modify your car, you might want to give your insurer a call. Otherwise, you could find future claims rejected 
• Shopping around for policies: From the level of coverage to the premium, checking to see what’s on offer could help you find Car Insurance that better matches with your needs 

Where can I compare Car Insurance for P-platers? 

Preparing for your first drive as a P-plater isn’t just about picking the most iconic playlist. Figuring out your Car Insurance could help you drive with peace of mind and see you covered in a wide range of accidents. Handily, iSelect makes comparing a range of Car Insurance policies from different providers easy. You can chat with our comparison experts on 13 19 20 or you can DIY with our online comparison tool.