Car insurance for P-platers

There are 3 main ways you can get cheaper car insurance cover as a P-plater. First, adding yourself as an additional driver to your parents' car (as long as they're still the main driver) can lower costs. If that's not an option, a third party policy could be good if you don't own an expensive car. Otherwise, think about getting cheap comprehensive cover.

How much does comprehensive car insurance for P-platers cost?

Provider	Average cost	Apply
ROLLiN'	$1,226	Get a quote
Budget Direct	$1,339	Get a quote
Bingle	$1,364	More info
Hume Bank	$1,395	More info
Virgin Money	$1,472	More info

• How we got these quotes

  As part of the 2024 Finder car insurance awards, we sourced over 1,800 quotes from 30+ providers using 60 different driver profiles including different ages, genders and locations. To get the average costs above, we filtered this data to look solely at 20-year-old males and females across each eligible state. Further driver profile details can be found in our car insurance methodology.

  It's important to note, while these quotes have been collected using our detailed methodology, your own quote will depend on your personal circumstances. Always read the PDS to understand what product is best for you.

"When I was a p plater, the only insurance I was able to get was NRMA. No one else would cover me. It was actually a real pain in the bum, because the NRMA was charging an extra couple of hundred dollars a year for the same cover. I was pretty poor at the time, so the only way I could save was to take out third party property rather than comprehensive cover."

Tim Bennett

Insurance expert

What cover option is best for P-platers?

Not sure which cover type to go for? Here's the lowdown on each cover type to help you make a decision.

Comprehensive Cover: If you want top cover, this is the option for you. It covers theft, vandalism, storms, flood, hail, fire, key replacement, emergency accommodation, hire cars, accidental damage (to name a few), plus everything covered by cheaper policies.

Best for: P-platers who want peace of mind knowing they have the highest cover available.

Third Party Fire and Theft Cover: As the name suggests, this cover type ensures you are protected if your car is stolen. It also covers you for fire damage and if your car causes damage to someone else's property.

Best for: P-platers who need a bit more cover without the pricetag.

Third Party Property Damage Cover: It's the most basic policy, providing cover for any damage you may cause to someone else's vehicle or property. However, it won't cover the expense of repairing damage your vehicle incurs as a result.

Best for: Those P-platers with cheaper cars or who are on a really strict budget.

Compulsory third party (CTP): Commonly known as greenslip insurance, CTP is mandatory for every driver in Australia. In many states, it's included in your car rego so you don't need to worry too much. It offers protection to the driver who is at fault for a motor vehicle accident which led to another person being injured.

Best for: Everyone – it's mandatory!

Expert tips for p-platers looking at their car insurance options

If you would struggle to pay for repairs to your own car, or your parents if you’re using theirs, then comprehensive car insurance is probably your best bet as a P-plater. It will cost more than a third party policy initially but once you’ve held cover for a while, and you don’t need to claim, prices typically come down.

Gary Ross Hunter
Insurance editor

As a P-Plater, every birthday you become a little less risky to an insurer, because your experience on the road translates to a lower chance of having an accident. So, make sure you shop around every 12 months and compare policies to get the best possible deal.

Sarah Megginson
Managing Editor at Finder

What other factors impact the cost of car insurance for P-platers?

There are several other factors that can affect the cost of car insurance for drivers under the age of 25:

• Your gender. Men, especially young ones, are considered more likely to engage in risky driving behaviours than women, so generally have to pay more for car insurance.
• Where you live. Some suburbs have a much higher rate of car theft than others.
• Where the car is kept. If your car is locked in a secure garage overnight, you'll pay much less for cover than if it were parked on the street.
• How often you drive. Vehicles driven frequently are more likely to be involved in an accident than those only driven occasionally.
• The excess you choose. If you have the flexibility to vary your excess, selecting a higher excess will allow you to pay cheaper premiums.
• Any discounts that apply. You may be able to take advantage of discounts to lower the cost of your premium, such as savings for buying online or discounts for insuring multiple vehicles.

Questions you might have

• Why does car insurance for P-platers cost more?

  If you're a P-plater under the age of 25, statistically speaking, you're more likely to be involved in an accident due to a lack of driving experience.

• What's the best car insurance for young drivers?

  There is no universal best car insurance for young drivers because what you need will depend on your personal circumstances. To help find what's best for young drivers, it's worth looking at a range of insurers to understand how they treat young drivers. For example, RoLLiN' car insurance does not add an excess for claims involving a young driver as long as they're listed on the policy. Other insurers will charge an additional excess of around $600. There's no 'best' car insurance for young drivers but there certainly are features of policies - like excesses for those under 25 - that can be appealing for p-platers, and those may be worth considering in your search.

• What's the cheapest car insurance for p-platers?

  According to Finder's research of 9 different providers, Bingle offers the cheapest comprehensive car insurance policy for p-platers. On average, Bingle charges $1,351 a year while other providers charge between $2000-$3000 for their comprehensive policies.

• Do I have to get my own car insurance policy or can I stay on my parents' policy?

  There's no requirement for P-plate drivers to invest in their own car insurance policy, so there's no problem with remaining insured on your parents' policy (as long as they don't mind).

  It will often work out cheaper to share cover with mum and dad on the one family policy than for you to go out and purchase a separate policy. You'll need to be listed as a driver on your parents' policy and this will obviously mean their premiums will increase. They might ask you to chip in to cover the cost but if you're lucky they'll foot the bill. However, keep in mind that this option is only viable if the vehicle is owned by the policyholder and they're the main driver – it can't be done if you're the car's legal owner.

• Can I put insurance under my parents' names if they don't own the car?

  You might be tempted to save money on P-plate car insurance by putting the policy in your mum or dad's name even though they don't own the car. However, this practice, known as "fronting", is not a good idea. If you try to put your policy in a parent's name when you're the main driver, you run the risk of any claim you make being rejected or your entire policy voided, which can have expensive consequences.

• Does the type of car I drive affect my premium?

  Yes. The more expensive your car, the more it will cost to insure. Other vehicle-related factors that influence the cost of cover include:

  • Some vehicles stand up to collision damage more than others and are cheaper to repair
  • How easy it is to find the necessary parts to repair some vehicles
  • Security and alarm systems installed on your vehicle can deter thieves and lower the cost of premiums
  • Some makes and models are more popular with thieves and cost more to insure
  • Some makes and models are statistically more likely to be involved in an accident
  • Older cars are generally cheaper to insure because they have lost a lot of their value and cost less to replace

• Can I get discounts on my car insurance?

  Yes, there are often car insurance deals and discounts available which can be really helpful for p-platers who are looking to reduce the cost of their premium.
  

Written by

Gary Ross Hunter

Editor, Insurance

Gary Ross Hunter was an editor at Finder, specialising in insurance. He’s been writing about life, travel, home, car, pet and health insurance for over 6 years and regularly appears as an insurance expert in publications including The Sydney Morning Herald, The Guardian and news.com.au. Gary holds a Kaplan Tier 2 General Advice General Insurance certification which meets the requirements of ASIC Regulatory Guide 146 (RG146). See full bio

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