Student car insurance

Car insurance can be costly on a student's budget. But that doesn't need to be the case. While there's no specific type of student car insurance available, there are ways to keep things affordable, from the car you drive to specialist telematics policies.

Does being a student affect my car insurance?

You don't necessarily pay more because you're a student – it's more because of how old you are. Students are likely to pay more than others for their car insurance often because they are younger. If you are under 25, you are considered a young driver by insurers.

Expert insight

"Age is a really interesting one, because a lot of insurance providers have a lot of data they refer to, and it can impact the insurance that you pay. For example, younger drivers generally do have higher premiums than older, more mature drivers. That's why it's really important to do your research. "

Queenie Tan

Licenced financial creator

What else affects the cost of car insurance?

Age isn't the only factor used when calculating your premiums. In fact, there are loads of things that will affect how much you're charged for car insurance. This can include:

• Where you live and where you park your car
• How often you're driving and whether you're on the road during peak hour
• What kind of car you have and if it's modified or includes any other kinds of enhancements
• How long you've been licensed for and if you have a good or bad driving record (specifically demerit point offences)
• What level of cover you purchase. Comprehensive insurance is more expensive than third party cover.
• How many kilometres you travel in a year
• Your gender. Young men tend to be charged more than young women because they're seen as riskier drivers

Do insurance companies ask if you're a student?

Typically, yes. Insurance companies will often ask what your occupation is, so you'll have to let the insurer know that you are a student.

You must be truthful in your application so don't be tempted to lie — it won't do you any favours.

Are there any specific policies dedicated to students?

No, there is no specific car insurance providers for students, nor are there any student discounts.

Unfortunately, if you're a younger driver, that just means you're likely to face higher premiums. This is because the insurer perceives younger drivers as risky and allocates the price as such.

However, car insurance providers often have discounts on offer for new customers and you can take advantage of those.

Car insurance options for students

Being a student shouldn't hinder what type of car insurance you're able to get. Regardless of your student status, car insurance requirements stay the same. So compulsory third party (CTP) is still mandatory, comprehensive, third party property damage and third party fire and theft policies are still optional (but certainly a good idea).

Comprehensive car insurance is typically more expensive so if you're a student on a budget and you don't need top tier coverage, it could be worth looking into a third party property damage policy or a fire and theft policy.

Does being on my Ls or Ps affect the cost of insurance?

Yes. L-plate and P-plate drivers fall into a high-risk group, which means you'll typically pay more for your car insurance. However, some car insurers don't require learner drivers to be listed on an existing car insurance policy (for example, a parent's) at all, so you might not have to pay higher premiums whilst you learn. You should always check with your insurer beforehand to see if this is the case.

Which car insurance is best for students?

Students are often on a tight budget so a policy that's within your budget is essential. There's a range of things you can do to find cheaper car insurance.

How students can save money on their car insurance policy

• • Take advantage of sign up offers. Some providers offer up to 10 or 15% off which can translate to over $100 in savings.
  • Compare your options. The best thing you can do is compare multiple quotes so you've got an idea of what your options look like. Quotes vary hugely, it's always worth researching.
  • Be willing to get on the phone. Often, car insurers are open to negotiate on the cost of insurance. If you just get on the phone and ask for pricing flexibility, you'll be surprised by how much you can save.
  • Adjust your excess. The higher your excess, the lower your premium will be. Just make sure you can still afford your excess in the event that you actually have to pay it.

FAQs

• Are there any student discounts for car insurance?

  No, not for students specifically but there are general deals and discounts on offer that you can take advantage of.

• Who has the cheapest car insurance for students?

  According to Finder research, RoLLiN', Budget Direct and Bingle were at the more affordable end of the spectrum when we got quotes for people around 20 years old. The cheapest option for you will depend on your personal profile and this should be used as a guide only.

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

Gary Ross's expertise

Gary Ross has written 644 Finder guides across topics including:

• Health, home, life, car, pet and travel insurance
• Managing the cost of living

Co-written by

Peta Taylor

Publisher of Insurance

Peta Taylor is a publisher at Finder, working across all of insurance. She's been analysing product disclosure statements and publishing articles for over 2 years. Peta is passionate about demystifying complex insurance products to help users make well educated decisions with confidence. Peta is part of Finder's insurance awards team and works alongside editorial and insights experts to bring users the best insurance products every year. See full bio