CompareAll Business InsuranceCompare Business InsuranceOverseas Visitor CoverAll LoansCompare Loans
Young drivers can get the same car insurance as anyone else: comprehensive, third party fire and theft, or third party property damage. What changes under 25 is the price and the excess. Insurers charge more and add age-based and inexperienced-driver excesses, because young drivers are involved in more crashes.
The numbers behind that are stark. People aged 17 to 25 accounted for 219 of the 1,314 road deaths in Australia in 2025, about one in six. The good news is that the premium falls as you get older and build a claim-free record, and there are legitimate ways to pay less now.
By Better Rate Mate Editorial Team ยท Last reviewed
Insurers price on claims data, and drivers in their first years on the road have more crashes. BITRE's figures show 219 road deaths among 17 to 25 year olds in 2025, down from 240 in 2024 but still a large share of the total for an age group that covers only nine years.
Pricing generally falls through the early twenties as a driver builds experience and a claim-free history. It does not drop overnight at 25: insurers look at years licensed and claims record as well as age, and an inexperienced-driver excess can still apply after 25 if you have not held a full licence for long.
Excesses are where young drivers get caught out, because they stack on top of the basic excess. The names differ between insurers, but these are the common ones.
| Excess | When it usually applies | Stacks on top of the basic excess? |
|---|---|---|
| Basic excess | Most claims, whoever is driving | It is the base |
| Age or young driver excess | The driver is under a set age, often 21 or 25 | Yes |
| Inexperienced driver excess | The driver has held a full licence for less than a set period, often two years, regardless of age | Yes |
| Unlisted or undeclared driver excess | The driver is not named on the policy | Yes |
| High-performance vehicle excess | Some powerful cars carry a fixed extra excess | Yes |
| Voluntary excess | You chose a higher basic excess to lower the premium | It replaces the standard basic excess |
If you mostly drive a family car, being listed as a driver on your parent's policy is legitimate and usually the cheapest option. If you have your own car, you can be the policyholder and main driver on your own policy. Moneysmart notes some insurers offer a family discount to under-25s whose parents are insured with them, so ask.
The line you must not cross is fronting: naming a parent as the main driver of a car you drive most of the time. It is a misrepresentation. Insurers check who really drives a car when there is a claim, and the result can be a refused claim and a cancelled policy that you have to disclose to every future insurer.
The car can matter as much as the driver. Insurers price on repair costs, theft rates, power and safety. A young driver will usually pay less to insure a common, modestly powered small car or hatchback with a strong ANCAP safety rating and cheap, easily available parts than a performance car, a prestige brand or a model that is popular with thieves. If you are a P plater, check your state's prohibited vehicle rules too; in NSW that excludes cars with a power-to-tare-mass ratio above 130 kW per tonne (see car insurance for P platers). Get an insurance quote before you buy the car, not after.
For a cheap first car, third party property damage is a reasonable choice if you could afford to lose the car. It still protects you from the biggest risk, which is being liable for someone else's car. Third party fire and theft adds cover if your car is stolen or burns.
If the car is financed, or you could not replace it from savings, price comprehensive first. It is the only level that covers your own car when you cause a crash, hit an animal, or it is damaged by hail or flood.
These steps reduce the price without leaving you exposed:
There is no single cheapest insurer for young drivers; pricing varies widely. Compare several quotes with the same cover, excess and drivers, and consider being listed on a parent's policy if you drive the family car.
Young drivers are involved in more crashes, and insurers price on claims data. People aged 17 to 25 accounted for 219 of Australia's 1,314 road deaths in 2025. Premiums generally fall with age, experience and a claim-free record.
It is generally highest for the youngest, least experienced drivers and falls through the early twenties as experience and a claim-free record build up. Each insurer sets its own age bands.
Often, because many insurers' age excesses and loadings stop around 25. But experience matters too: an inexperienced-driver excess can still apply after 25 if you have not held a full licence for long, typically two years.
Yes, as a listed driver of their car. What you cannot do is have a parent named as the main driver of a car that you mostly drive. That is fronting and can lead to a refused claim.
List them honestly on your policy if they drive the family car, check whether your insurer offers a family discount, and if they are buying their own car, get quotes on a few modest, well-rated models before they choose.
