Car insurance for P platers
P platers can buy any level of car insurance, from third party property damage to comprehensive, either as the main driver on their own policy or listed on a parent's policy. What makes P-plate insurance different is price and conditions: provisional drivers pay more, face extra excesses, and can lose cover altogether by breaking a licence condition.
Passing the test is the point where insurance gets expensive. A provisional driver drives alone, often at night and often with friends, and people aged 17 to 25 accounted for 219 of Australia's 1,314 road deaths in 2025. Here is how to get cover that actually pays out, without paying more than you need to.
By Better Rate Mate Editorial Team ยท Last reviewed
Do P platers need car insurance?
Only CTP is compulsory, and it comes with registration (or, in NSW, the Green Slip). It covers injury to people, not cars. Every P plater should have at least third party property damage, because a new driver who causes a crash is personally liable for the other car, and a late-model car can cost more to repair than a first car is worth. If you could not replace your own car from savings, or it is under finance, comprehensive is the level to price first.
Licence conditions and your insurance
Provisional licences carry legal conditions that differ by state: speed limits, passenger limits, mobile phone bans, zero alcohol and restrictions on high-performance vehicles. Most policies exclude cover when the driver was not licensed to drive that vehicle in those circumstances, so breaking a condition can put a claim at risk as well as the licence.
NSW shows how specific these rules are. Transport for NSW sets a 90 km/h maximum for P1 drivers, bans any mobile phone use including hands-free, requires zero alcohol, and says a P1 driver under 25 must not carry more than one passenger under 21 between 11pm and 5am. Other states have their own versions, so check your road authority: VicRoads, Queensland's Department of Transport and Main Roads, South Australia's Department for Infrastructure and Transport, the WA Department of Transport, Transport Tasmania, Access Canberra or the NT Motor Vehicle Registry.
| P1 condition (NSW) | The rule | Insurance risk |
|---|---|---|
| Speed | Maximum 90 km/h; any speeding offence suspends a P1 licence for at least 3 months | Driving while suspended is unlicensed driving, which policies exclude |
| Alcohol | Zero blood alcohol | Driving over the limit is a standard exclusion |
| Mobile phones | No use at all, including hands-free and speaker | Offences bring demerit points and can lead to suspension |
| Peer passengers | Under 25: no more than one passenger under 21 between 11pm and 5am | Driving outside a licence condition may be treated as not being properly licensed |
| Prohibited vehicles | No high-performance vehicles (see below) | A claim in a car you may not legally drive is at high risk of refusal |
P-plate conditions in each state
The conditions that most often matter for a claim are the peer passenger limit, the ban on high-powered vehicles and the zero alcohol rule. They differ between states, so check the rules where the car is registered and where you drive.
| State | Peer passengers | High-powered vehicles | Alcohol |
|---|---|---|---|
| NSW | P1 drivers under 25: no more than one passenger under 21 between 11pm and 5am | P1 and P2: banned if the power-to-tare-mass ratio is over 130 kW per tonne, or the engine has a significant modification | Zero |
| VIC | P1: no more than one passenger aged 16 to under 22 (a spouse, partner or sibling does not count) | P1 and P2: banned if over 130 kW per tonne, rated 'banned', or with a performance-modified engine | Zero |
| QLD | P1 drivers under 25, 11pm to 5am: one passenger under 21 who is not immediate family | P1 and P2 drivers under 25: restricted (for cars built from 2010, over 130 kW per tonne or an engine modification needing approval) | Zero |
| SA | P1 drivers under 25: no driving midnight to 5am, and no more than one passenger aged 16 to 20 (immediate family excepted) unless a qualified supervising driver sits beside you | Drivers under 25: no high-powered vehicles (for cars built from 2010, over 130 kW per tonne in tare mass, or any engine modification) | Zero |
| WA | Red P plates (first 6 months): one passenger only, with exemptions, and no driving midnight to 5am | Check with the Department of Transport and Major Infrastructure | Zero |
| TAS | P1: no more than one passenger aged 16 to 21; the limit ends when the driver turns 25 | Check with Transport Tasmania | Zero |
| ACT | One passenger aged 16 to 22 between 11pm and 5am, with exemptions for work, school and family | Check with Access Canberra | Zero |
| NT | No passenger limits | Check with the NT Motor Vehicle Registry | Zero |
Prohibited high-performance cars
Most states stop provisional drivers from driving some high-performance vehicles. In NSW a prohibited vehicle is one with a power-to-tare-mass ratio above 130 kW per tonne, or one with a significant engine modification, and the ratio is not rounded, so 130.01 kW per tonne counts. Check the car against your state's rules before you buy it, not after. Insuring a car a P plater is not allowed to drive does not make driving it legal, and a claim is likely to be refused.
The excesses P platers face
Alongside the basic excess, most insurers add an age excess when the driver is young, and an inexperienced-driver excess for drivers who have not held a full licence for long. RACQ, for example, applies an inexperienced-driver excess to drivers aged 25 or over who have not held a full Australian licence for the preceding two years, and notes that learner drivers are generally the exception, with no additional excess. The Financial Rights Legal Centre gives an under-21 excess as a common example of an extra excess.
These stack. A P plater who crashes a parent's car may face the basic excess, an age excess and, if they were not listed on the policy, an unlisted-driver excess. Add them up before you choose the policy, because the combined figure is what you would actually pay. Our car insurance excess guide explains each one.
Your own policy, or a parent's?
A P plater can be the policyholder and main driver on their own car's policy, or listed as a driver on a parent's policy for a family car. Both are legitimate. Moneysmart notes that some insurers offer a family discount to drivers under 25 whose parents are insured with them. Our guide to car insurance for young drivers covers the choice in more detail.
What is not legitimate is naming a parent as the main driver of a car the P plater mostly drives. This is often called fronting. It is a misrepresentation, and insurers look for it at claim time, when the consequence is a refused claim and possibly a cancelled policy you have to disclose to future insurers.
After a crash on your Ps
The steps are the same as for any driver. Stop, check whether anyone is hurt (call 000 if they are) and swap details with the other driver: names, addresses and phone numbers, licence and registration numbers, insurers, and each car's make, model and colour. Moneysmart also suggests taking photos of the scene.
Then be careful what you say. AAMI's PDS tells policyholders "Do not admit fault to anyone", and RACQ's says you must not admit fault to any other party or agree to repair anyone else's property. Leave liability to the insurers, contact yours as soon as you can, and answer its questions truthfully, including about passengers and the time of the crash: wrong information can lead to a refused claim.
How P platers can pay less
The price comes down over time as you build a claim-free record, but these steps help now:
- Choose the car with insurance in mind: a common, modestly powered car with a good safety rating and inexpensive parts costs far less to insure.
- Compare several insurers on identical cover, excess and drivers. Pricing for young drivers varies a lot between insurers.
- Consider a higher voluntary excess, but only one you could pay without borrowing.
- Give an accurate, not optimistic, estimate of annual kilometres, and garage the car if you can.
- Pay annually if you can; Moneysmart reports instalments can cost 10% to 20% more.
- Think before claiming for minor damage. A small at-fault claim can cost more in lost no claim bonus than the repair.
What to watch for
- Zero alcohol applies to provisional drivers, and driving over the limit voids cover under almost every policy.
- Check the car against your state's prohibited vehicle rules before you buy it.
- Licence conditions such as passenger and phone rules can affect a claim, not just the licence.
- Add up the basic, age and any unlisted-driver excess. That total is your real cost of a claim.
- Never list a parent as the main driver of a car you drive most. Fronting leads to refused claims.
Common questions
Does car insurance cost more for P platers?
Yes. Provisional drivers are young or inexperienced, and insurers price on claims data, so premiums and excesses are higher. The price falls as you build a claim-free record and move to a full licence.
Do P platers need to be insured?
Only CTP is compulsory. But without at least third party property damage you are personally liable for damage you cause to other people's cars and property, which can easily run to many thousands of dollars.
What is the best car insurance for P platers?
The best policy is one that covers the risks you face with an excess you can afford. For most P platers with a car they rely on, that is comprehensive from whichever insurer quotes best on identical cover. Compare the combined excess for a young driver, not just the premium.
Can a P plater drive any car?
No. Most states restrict provisional drivers from some high-performance vehicles. In NSW that means a power-to-tare-mass ratio above 130 kW per tonne or a significant engine modification. Driving a prohibited vehicle risks both the licence and any claim.
What should you not say after a car accident?
Do not admit fault or offer to pay. AAMI and RACQ both tell policyholders not to admit fault, and not to agree to pay for, repair or settle anyone's damage before contacting the insurer. Swap details, take photos and let the insurers decide who was at fault.
Do I need to tell my insurer when I get my Ps?
Yes. Moving from L to P plates changes your risk and often your excess, and if you are listed on a policy as a learner the insurer needs up-to-date details. Out-of-date driver details can affect a claim.
