How to get cheap car insurance for teens

When buying car insurance for teens, the price of the policy can be a considerable concern as drivers under 25 are often charged the highest car insurance premiums among all age groups. As insurance providers generally don’t offer exclusive, affordable car insurance for teens, getting a suitable policy can require extensive research. 

One option is to look for discounts or policies with specific conditions that can lower the car insurance premium. An alternative option is for parents to add their teenager to their existing car insurance policy. You’ll need to check whether doing so requires you to pay more than one kind of car insurance excess, which is the amount you agree to pay towards any claims.

How much is car insurance for teens likely to cost?

Younger drivers under 25 years of age can easily find themselves paying a few hundred dollars more than the average car insurance cost for drivers over 26. Many families may not find this affordable and may instead prefer that the teenage drivers get some driving experience in the family car under the family’s car insurance policy before buying their own car insurance policy.

If you need to buy a car insurance policy as a teenager, you might consider opting for a policy with only the most necessary coverage to keep the cost low. For example, you may decide you don’t need comprehensive car insurance, and instead stick to cheaper Compulsory Third Party (CTP) insurance. 

The cost of a car insurance policy can also vary based on several factors apart from your age. For example, even for older drivers, car insurance premiums for male drivers may be higher than those for female drivers, depending on the insurer. 

As the type of car can also make a difference to the premium, you may want to consider driving a cheaper, more commonly-available vehicle that shouldn’t cost much to repair or replace. You can also agree to a higher car insurance excess to bring down your premium but remember that as a younger driver your excess may already be relatively high.

You can also check if an insurer may give you a discount for fulfilling certain terms and conditions, such as taking defensive driving lessons. Buying a policy from the same insurer as others in your family might get you a discount too, as may buying the policy online. 

Once you have a few years of safe driving under your belt, you may become eligible for a no-claims discount, which rewards you for not making insurance claims in the past few years. Also, if you don’t plan to drive too often, you can go for a ‘pay as you drive’ policy which can cost less over the longer term.

Which policies are likely among the better car insurance plans for young adults?

Although you may not find insurance policies meant specifically for teens, you can compare car insurance quotes for teens to find a policy that works for you. However, you may need to know which type of policy is most suitable before comparing quotes. 

If you’re buying insurance for a shiny new car which costs a good amount of money, you may want to buy a comprehensive car insurance policy which also covers most natural incidents, theft, and vandalism, though the premiums may cost more. 

If you drive a cheaper car, but live in a neighbourhood prone to bushfires, a third-party fire and theft insurance policy may cover the risk of fire damage to your car, and cost less too.

What are my options if I can’t find affordable car insurance for young adults?

Most insurance providers do not offer specific car insurance plans for young adults, which means there’s a chance you may not be able to find affordable car insurance. If you live with your parents, you could consider asking them to add you to their car insurance policy. 

However, your parents may need to check with their insurer about the costs involved in adding you to their policy. This could involve paying a young driver excess in addition to the usual car insurance excess. Also, your parents will have to ensure you are listed on the car insurance certificate or risk paying an unlisted driver excess.

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