Car insurance for under-25s

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Promoted Finder Score 8.3 Great Bingle Comprehensive	Sample quote $2,078.79	Get Quote View details Compare product selection Compare	loading
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Promoted Finder Score 9.9 Excellent Budget Direct Comprehensive Finder Award	Sample quote $1,740.19	Get Quote View details Compare product selection Compare	loading
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How we picked these

• How we got these costs

  To get these costs, we sourced quotes from 30 different car insurers across 60 different driver profiles that included different ages, states and genders. Using this data, we have calculated the average cost per provider per age group and showcased the top 5 cheapest in each category. To know more about the driver profile used to source these quotes, see Finder's car insurance methodology.

Why is car insurance for under 25s so expensive?

Car insurance for young drivers, specifically those under 25 years old, is so expensive because insurers see these drivers as risky and will therefore inflate the premium to cover this risk. If you're a young driver with a perfect driving record, you'll likely still find that insurance is expensive. If you're a young driver with a a bad driving history then you might find it difficult to get cover at all.

Can I get a cheaper policy if I use my parent's name?

Sharing the car with your parent is typically the cheapest way to get lower car insurance premiums. In this situation, the insurance policy is valid if your parent is the main driver and you have permission to use the car.

It’s important to remember that you’re only covered by your parent’s car insurance policy if you use the car less than them. Also, an age-based excess may apply, which means the regular excess might be $700, but the excess for drivers under 25 is $1,500.

3 other ways young drivers can save on car insurance

Look for sign up discounts

Many car insurers offer sign up discounts that can translate to $100 or more in savings. Instead of auto-renewing your exisiting policy, it can be so worth shopping around and seeing what other providers can offer you. Keep in mind, a percentage discount will often be more valuable than just a cash amount discount. Take time to run the numbers.

Be willing to make a phone call

Some insurers will be happy to negotiate on price over the phone, all you've got to do is call and tell them you're thinking of switching providers. Do some research prior so you can prove that similar products are available at a cheaper rate, if asked. This is a tried and tested tip by Finder's insurance team.

Choose a higher excess

Choosing a higher excess will lower the cost of your premium. Just be aware that this is the amount you'll have to pay if you ever need to make a claim, so be sure you can afford it.

Expert tips about getting car insurance for under-25s

Our expert says

"Younger people are often managing budgets for the first time, and car insurance might not make the cut – but I'd argue that car insurance is essential. It's much cheaper to pay for insurance than it is to fork out thousands for a new car after an accident. Shop around to compare and search for discounts to get the best possible value."

Sarah Megginson

Personal finance expert + media spokesperson

Expert insight

"Insurance for under-25s is specialist and expensive. That means it's both vital you get the best policy in the first place and you don't keep it long. As a young car owner, there could be cheaper deals available to you with each and every year of age and driving experience."

Nicole Pedersen-McKinnon

Freelance finance journalist

What's the best car insurance for under-25s?

The best car insurance for a young driver is one that suits your circumstances and offers you the most value. That means the policy that's right for one person will be different from the one that's right for someone else.

Here's how to find the best policy based on your situation:

Who has the cheapest car insurance for young people?

For cheap car insurance for young people in Australia, the cheapest policies for newer drives often come from insurers like AAMI, Budget Direct, Bingle and Coles.

However, that depends on the inclusions you want, the excess you choose and discounts, and the absolute lowest price depends on your personal details. Comparing quotes from multiple providers is recommended, as policies can vary widely between insurers.

FAQs

• What's the best car insurance for under 25?

  Finder research shows the best value car insurance for under 25s is Budget Direct comprehensive car insurance. This is because it offers a thorough policy at a lower cost than competitors. For a policy that prioritises price only, then RoLLiN' is a good option for young drivers as it typically comes out cheapest. Keep in mind, the costs for this research are based off a fictional profile and your own quote will likely differ.

• Can I insure my car in my parents' name?

  Not if you drive the car more than they do. If you want to save money by piggybacking off of an experienced driver's policy, you can – but that driver needs to be the one who drives the car the most. In other words, your parents can't insure your car in their name just to save you money on your insurance. That is called car insurance fronting and is a form of fraud. If you have to claim at some point, your insurer has ways of finding out who really drives the car most. Just don't do it.

• Can young drivers get insurance for a modified car?

  Yes but it depends on the modification. Firstly, before buying a modified car, you should check to see if there is an insurer that will cover you. Make sure the modifications aren't considered dangerous or illegal – if they are, your insurance won't cover you.

  For small modifications, such as a roof rack, you will most likely need to list them as a non-standard accessory when you take out a policy. Insurers will usually ask you about this during the quote process.

• Do young drivers pay more for car insurance?

  Yes. Younger drivers have less driving experience and are statistically more likely to be involved in car accidents. Therefore, insurers see them as higher risk drivers and tend to charge higher premiums.

• Is there specialised car insurance for younger drivers?

  There aren't any providers who exclusively offer cover for younger drivers, however there are car insurance providers who may be better for young drivers than others.

  This can be influenced by; what premiums they charge for younger drivers, if they have a young driver excess and how expensive it is, how they may up the premium for a policy with a younger driver listed as an additional driver.

  Our research found that RoLLiN' is particularly good for young drivers as the premiums are competitive and it doesn't charge an age based excess, while many other insurers charge up to $600 for claims made by a younger driver.

• Can I get a discount on my car insurance?

  Yes, car insurance deals and discounts are often available, particularly on comprehensive plans. This can be great for young drivers looking to reduce their premium.