Provider | Average cost | Apply |
|---|---|---|
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.
It's not all bad news though. There are ways that younger drivers can save on their car insurance premium. See below.
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.
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 & tested tip by Finder's insurance team.
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.
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
Managing editor at Finder
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:
Car | Which insurance? |
|---|---|
You bought a new car or you drive an expensive one | Comprehensive insurance is likely the best level of insurance for you since it will cost you dearly if your car is totalled. It covers your car in a wide variety of situations including accidents you cause, natural disasters and uninsured drivers. Plus, if you bought your car with finance, your lender will probably require that you have comprehensive cover. |
You have an expensive car and you drive long distances | The best policy for you would probably be a comprehensive policy, with all the options. Besides giving you the full protection of a comprehensive policy, it can also include some extra selling points such as a hire car after a bingle (if you cause the accident), sending a tow truck to you if you break down and replacing your windscreen without requiring you to pay an excess. Always check the PDS (the terms and conditions) for an insurance policy so you know exactly what's included in each one. |
Your car isn't super expensive but you live in a high-risk area | Third party fire and theft is likely the best policy for someone who lives in a high-crime area or somewhere that's prone to bushfires – but doesn't need the full cover of a comprehensive policy. It'll cost you less than comprehensive insurance, but it still protects your car against fire and theft. Again, check the PDS of the insurance policy you're considering to make sure exactly what's covered and what's excluded. |
You drive a banger | Third party property damage is probably the best cover for you if your car isn't worth much and you can afford to replace it. Third party property damage doesn't protect your car, but it does protect you if you damage other people's stuff – like their cars or property. |
You live with your parents | If you don't mind driving your parents' car (and you drive it less than they do), the best option for you is to stay on your parents' policy so you can save some money. Make sure you don't end up committing insurance fraud though by having your parents do something called "fronting". |
Top Pick: Bingle
Finding affordable car insurance as an under-25 can be tough. Insurers often consider young drivers higher risk, leading to steeper premiums and sometimes even exclusions. That's why we've focused on finding insurers that offer reliable coverage without breaking the bank.
Our top pick for the best car insurance for under-25s is Bingle. They stand out by providing accessible coverage options, including comprehensive and third-party policies, specifically tailored to young drivers. Crucially, unlike many insurers, Bingle doesn't shy away from covering this demographic.
Data from Finder consistently shows Bingle offers some of the most competitive rates for young drivers, providing significant savings compared to other insurers offering similar coverage. Bingle also won the most recent Finder car insurance award for the low cost category.
While Bingle might not have all the premium features of more expensive providers, they excel in what matters most to under-25s: affordability. If you're prioritizing value and reliable coverage, Bingle is a strong contender for the best car insurance for you.
Drivers who text are 10 times more likely to crash yet a large number of Australians still do it.
Need free towing? Here's which car insurance policies include it.
Discover how to get covered for pothole damage with this guide.
Discover if your car insurance policy will cover you for paint damage with this guide.
Discover if RACV car insurance is right for you with our handy review.
Discover how roadside assistance does so much more than simply helping you out if you have a breakdown with this handy guide.
Find out what short term car insurance options are available in Australia.
Find affordable and comprehensive car insurance for P-platers with this handy guide.
Steps to prepare for a claim if your car is damaged in a storm. Find out what to avoid and what to do in a claim.
My son is 17. Can I insure a Subaru Forester 2007 XT turbo with him as the second driver? If so, who will insure him? Thanks
Hi,
Thanks for reaching out to us. Please note that we are not affiliated with any company we feature on our site and so we can only offer you general advice.
You’re actually already on the correct page on where you can get helpful information and where you can compare your options for your son. You may click on the name of your preferred insurance on the list to see more details then you may click on the green ‘Get Quote’ button to get in contact with them and inquire. You should be able to inquire with them on what will be the requirements.
Best regards,
Rench