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How to find affordable car insurance for young drivers

Mark Bristow avatar
Mark Bristow
- 4 min read
How to find affordable car insurance for young drivers

Car insurance is usually more expensive for young drivers, as insurers consider them to be more at risk of being in an accident. But there are ways you can try to lower the cost.

In Australia, finding affordable car insurance for young drivers can be tricky as they’re statistically the group that’s most often involved in road accidents. While it might not be easy to find great car insurance for young drivers, you may be able to take advantage of discounts on specific policies or take other steps to bring down premium costs.

If you’re under 25 and looking for more affordable car insurance, you may want to take a few steps towards improving your car’s security, or demonstrating that you’re a safe driver and less likely to be involved in a car crash. You could also ask someone in your family that’s older than 25 to add you as an additional driver rather than buying your own insurance policy.

When does car insurance get cheaper for young drivers?

Generally speaking, car insurance costs more for men who are between the ages of 18 and 24, with car insurance for young drivers under 21 costing the most. But you should remember that the cost of car insurance also depends on a wide range of other factors, including:

  • where you live
  • your driving history
  • the car you drive
  • how much driving you do

If you’ve been in an accident as a young driver under 25, you may find that this is affecting your car insurance premium as much as, or more than, your age.

How can young drivers get cheaper car insurance?

You may want to compare cheap car insurance quotes online for young drivers or read car insurance reviews by your peers to check how to lower the cost of car insurance.

Sometimes young drivers who have smaller, more commonly-bought cars pay lower premiums, sometimes by buying only the most basic insurance policy. All cars in Australia require Compulsory Third Party (CTP) insurance, but you could choose a more affordable Fire and Theft policy rather than a Comprehensive car insurance policy.

  • Other options to help lower the cost of your car insurance include:
  • Trying not to file insurance claims where possible
  • Being careful about where you usually park the car and where you drive
  • Opting to pay a higher excess when making a car insurance claim 

How can I get car insurance deals for young drivers?

Even if you aren’t sure where to get cheap car insurance for young drivers, you can try to see if you are eligible for some discounts, such as a discount for buying the car insurance policy online.

Some insurance providers may also offer a reduced rate if you purchase policies covering more than one car, or bundle more than one policy, such as a home insurance and car insurance policy. If you haven’t filed any insurance claims for a few years, you may be eligible for a lower premium for that reason as well. 

Your insurer may also offer you a lower rate if you install extra security for your car, to minimise the chances of theft or vandalism, or enrol in a defensive driving course. 

You could also consider checking if a ‘pay as you drive’ policy will suffice for you in case you only plan to drive occasionally. In some cases, it may also help to add a driver older than 25 to your insurance policy as it indicates some responsibility on your part.

What is the average cost of car insurance for young drivers?

The cost of car insurance for young male drivers is usually well above the national average and can go upward of $1,700 for a comprehensive car insurance policy.

However, you can compare the car insurance quotes for young drivers offered by various insurers to see which policies are most affordable. You may need to provide specific personal details, including your postcode, exact age, and gender, to get an accurate quote.

While some insurers may provide quick car insurance quotes for young drivers based on less information, you may need to check the policy offered to make sure it reflects your circumstances correctly.

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Product database updated 15 Jun, 2024

This article was reviewed by Personal Finance Editor Peter Terlato before it was published as part of RateCity's Fact Check process.