How to find affordable car insurance for young drivers

How to find affordable car insurance for young drivers

Buying car insurance for young drivers is usually more expensive as they are more at risk of being in an accident, but you can try to lower the cost.

In Australia, finding affordable car insurance for young drivers can be tricky as they’re usually the ones 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 the premium.

If you’re under 25, you may want to take a few steps towards improving your car’s security and demonstrating that you’re a safe driver and less likely to be involved in a car crash. You may also want to ask someone in your family 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 where you live, your driving history, the car you drive, and how much driving you do.

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

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. You may find that young drivers who have smaller, more commonly bought cars are paying lower premiums, sometimes by buying only the most basic insurance policy.

It is also possible that most people your age or younger are trying not to file insurance claims, or being careful about where they usually park the car and where they drive. Some younger drivers may also opt for a higher excess in order to reduce the car insurance premium. 

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. 

Some of the more usual car insurance tips for young drivers include understanding the details of various policies and only buying the necessary amount of insurance. For instance, if you’re driving a low-cost car, you might not need to buy a comprehensive car insurance policy, which can cost a lot more than, for instance, a third party fire and theft policy.

You should 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 an older than 25 driver 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 $1,500 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.

Did you find this helpful? Why not share this article?



Money Health Newsletter

Subscribe for news, tips and expert opinions to help you make smarter financial decisions

By signing up, you agree to the Privacy & Cookies Policy and Terms of Use, Disclaimer & Privacy Policy


Learn more about car insurance

Can you insure your car for 6 months?

Most Australian insurers won’t offer you a 6-month car insurance policy, so you may need to buy a policy that covers your car for damages and cancel it after six months. You will need to purchase comprehensive car insurance to protect your car from accidental damage, theft, vandalism, or natural disasters.. 

Consider checking whether your 6-month comprehensive car insurance will cost more if you pay monthly or six-monthly premiums instead of a one-time annual premium. Another question to ask the insurer is whether you’ll need to pay administration or cancellation fees when you cancel the policy.

Alternatively, you can look for a suitable ‘pay as you drive’ car insurance policy, which usually offers you the coverage of a comprehensive car insurance policy but only requires you to pay for the distance driven. Such a policy may not be the ideal 6-month car insurance plan as it is based on how much you drive rather than for how long. If you need to drive a lot, you may end up paying more than you’d pay for regular car insurance. 

Does insurance cover a stolen car if keys were in the car?

A car insurance policy that covers the theft of your car, such as third party fire and theft insurance, usually covers a stolen car, even if the keys were in the car’s ignition.

However, your insurer may deny the claim if you live in an area where there have been several car robberies reported recently. They will see you leaving the keys in the car as a case of negligence. In such cases, your insurance provider may even expect you to have installed anti-theft security measures in your car. 

You may need to confirm whether or not you left your keys in your car, and if they had been stolen or misplaced, before filing your car insurance claim. The loss or theft of your car keys may be covered by a comprehensive car insurance policy, but usually as an optional item.

If you can confirm that your car keys were stolen, mention this in your claim as this will help establish that your car was not stolen as a result of your negligence.