Compare Car Insurance For Young Drivers

Drivers under 25 often ask this question, and the answer depends on your circumstances. If you own a car, you will need to take out your own car insurance policy, even if you still live with your parents.

If you don’t have your own car, but drive your parent’s car (or cars), then you may be able to be added as an additional driver on their policy. If you drive a parent’s car very frequently, then it could be a good idea to be listed as a regular driver of that car.

As well as age, things that can affect your insurance premium include but are not limited to:

• driving experience 
• type of car (e.g. a modified hot rod or a very powerful car will generally attract a higher premium) 
• what you use the car for 
• where you live (some areas have a higher car crime rate) 
• your driving record (e.g. if you have any driving offences) 
• your claims history 
• how securely your car is parked overnight

That depends on the modifications and insurer.

Before you buy a modified car, you may want to check whether or not an insurer will cover it. Adding minor modifications to the car such as roof racks and tow bars, may be considered non-standard accessories, which need to be listed, but will often still be covered by insurers.

If you’re living life like Vin Diesel with legal but complex modifications such as a modified exhaust or legal lift kits, they may not be covered and you should check with your insurer first, to see if these items can be covered by your current policy.

Illegal or dangerous modifications may completely void your insurance policy.

Restrictions do vary between states, but generally if you’re under 25 and/or on a provisional licence, there may be restrictions on your ability to drive a high-powered car. 

Some factors that are usually considered when determining whether a car is or is not high performance include: 

• The manufacturing date 
• Whether the engine is turbocharged or supercharged 
• Whether the engine has been modified to increase the vehicle’s performance 
• The amount of cylinders in the engine 
• The power-to-weight ratio

An insurer will obviously not insure a car you are not legally allowed to drive. You may want to consider checking if you’re able to insure your new car before you finalise the purchase.

The short answer is it depends. Insurance companies work out the risks they are taking based on numbers, and young drivers are statistically much more likely to be involved in an accident. For example, in Victoria, one in six road users who died on the roads between 2017 and 2021 inclusive were aged between 18 and 25, and of all road fatalities involving drivers and riders, 45 per cent were aged between 16 and 39.Transport Accident Commission – Road user statistics

According to the Transport Accident Commission, the most common cause of accidents by younger drivers is due to a lack of skill.

The TAC also says younger drivers are at a greater risk due to: 

• Night driving 
• Use of alcohol and drugs 
• Speeding 
• Driving older and/or less safe cars  
• Distractions 
• Long drives

These are sad findings, but these statistics show us why younger drivers may pay more for their car insurance. 

So, drive safely. You’ll not only be protecting yourself but other drivers as well. If you do not need to make a claim on your policy, you could also start earning your no claims discount available with various car insurance providers.

There are a few things you could do which may save you some money on your premium.

• Increase your excess: If you opt for a higher excess, your premium will be lower, but you also run the risk of having to pay out a hefty lump sum if you’re involved in an at-fault accident, so bear that in mind.
   
• Build up your no claims discount: If you don’t make a claim over several years, your no claims bonus could grow to be a valuable discount off your premium. Not all insurers use this system, but you may be able to save on your premiums with the ones that do.
   
• Shop around and shop online: As with heaps of things, you can often find a better deal by doing some research and buying it online. Car insurance is no exception. 

Remember, it’s important that you are completely honest with your insurer about your details, your car, who will drive it, and what you use it for. Failure to tell your insurer important information or giving them misleading information could mean you won’t be covered if there’s an accident.

As a general rule, yes.  

The road statistics show that older drivers are less likely to have an accident. So, because they’re less likely to make an insurance claim, the insurer can afford to offer a lower premium.

Keep in mind that age isn’t the only factor that affects price, though. Insurers also look at the kind of car you drive and how many claims you’ve made in the past. If you’re a safe driver, this will usually reflect in a lower premium too.

All drivers need to be covered by compulsory third party (CTP) or Greenslip insurance. However, whether you need your own policy depends on a few factors.

For one, you might be covered by your supervising driver; but in many cases you’ll need to be listed on their policy, or their policy will need to include cover for learner drivers. This will usually depend on the terms and conditions of the specific policy, too.

Alternatively, you might be able to buy your own policy. This can be the case if you own the car and drive it more than anyone else.

Basically, you’ll need to check with your supervising driver if they have a policy that covers you. If they can’t, then you might need to take out a policy of your own.