Car insurance for people under 25 (young drivers)

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Source: www.canstar.com.au. Based on comprehensive car insurance policies rated in Canstar’s 2022 Car Insurance Star Ratings and Awards. The bonuses include quotes for new and used cars for a range of scenarios, with a state-specific target excess ranging from $600 to $750.

If your parent or guardian owns the car you will be driving, you may be able to ask if you can be added to their car insurance policy. This will generally add an additional cost to the policy, and a higher deductible for drivers under 25 may apply in the event of a claim. Talk to your insurer to see if this is an option for you and to find out what you will and will not be covered for.

To give you an idea of ​​how costs might differ, Canstar Research crunched the numbers to find the average annual premium for comprehensive car insurance on our database for a family with a young driver, again based on policies considered in our Star Ratings research. .

State Medium
New South Wales $2,563
queensland $1,761
Victoria $2,305
southern australia $1,820
Western Australia $1,629
Tasmania $1,582
North territory $2,050

Source: www.canstar.com.au. Based on comprehensive car insurance policies rated in Canstar’s 2022 Car Insurance Star Ratings and Awards. The bonuses include quotes for new and used cars for a range of scenarios, with a state-specific target excess ranging from $600 to $750.

Based on these numbers, if you were to contribute half the annual cost of a family car insurance premium, it would, on average, be cheaper than buying your own policy.

For example, if you agreed with your parents to pay half the premiums for a family car insurance policy in New South Wales, it would cost you about $1,281.50 per year. That’s just over half the price you’d pay for your own policy as a young female driver ($2,436), or less than half what you’d pay as a male ($2,734), based on Canstar average premium data. Check with your insurer if any conditions apply and how they might impact the cost or coverage of your parent’s policy.

Also keep in mind that these are estimates based on average numbers. The exact amount you would be charged on a family or stand-alone under 25 policy will vary depending on the insurer and policy you choose, as well as your personal circumstances. Additionally, you may prefer to purchase your own auto insurance policy for reasons other than cost, such as if you live away from home and have your own car.

Another option for a family looking for a potentially cost-effective and convenient way to insure more than one vehicle (e.g. the parent’s car as well as the car driven by an adult child) is a multi-car insurance policy. .

How to save on the cost of car insurance

If you’re looking to lower your car insurance costs, you may be able to lower your premiums by:

  • increase your car insurance deductible (the amount of money you have to pay your insurer if you make a claim)
  • park your car in a safe place like a garage if possible, rather than on the street
  • install anti-theft devices like car alarms, immobilizers, or tracking devices
  • avoid modifying your car, especially modifications that alter the appearance or performance of your vehicle
  • pay your premiums annually rather than in instalments
  • purchasing your policy online.

→ Read more: 10 tips to save on your car insurance

Many insurers also offer bonuses, often in the form of premium discounts. These are designed to reward drivers who do not claim their insurance. They generally increase each year that you do not make a claim, up to the maximum number of years. Some insurers may also offer premium discounts if you take a safe driving course.

Although not possible for everyone, another way to reduce premiums is to change the type of car you drive. It is usually more expensive, for example, to insure cars that have a higher market value or cost more to repair.

Finally, you may be able to save on your auto insurance by comparing policies to find the right one for your situation and budget. You can compare a range of comprehensive car insurance policies on Canstar’s database.

Compare car insurance with Canstar

Additional reporting by Tamika Seeto.

Cover image source: Africa Studio/Shutterstock.com


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