Car Insurance Australia Advice – Under 25 and ready to drive? Before you head out on a cruise or a late-night snack run, we’ve got you covered with car insurance, covering everything from fender benders to big potholes.
Whether you have a private car under the age of 25 or a family vehicle, the starting point in Australia is the same: compulsory third party insurance (CTP) is a legal requirement for all drivers. If you drive your own car, you need your own CTP policy, which protects you from civil liability if you injure someone in an accident. However, if you only drive the family car, you may not need a CTP policy. In this case, you need to convince your parents to put you on the list of drivers. Younger drivers are statistically riskier to take out insurance, so be aware that this may increase their premiums. CTP only covers injuries (not your car or other property) so you can get a higher level of cover. This is what we will discuss next.
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After meeting the CTP requirements, additional insurance options will appear, all of which are optional. For CTP, if you primarily drive a car owned by your parents, you can be covered under their policy. However, if you own your own car and decide to get this high level of coverage, you will need your own policy.
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A third-party lien is the primary protection against having someone else’s vehicle or property towed. While it won’t cover your driving damages, it can save you out-of-pocket expenses if you’re involved in an accident that damages someone else’s vehicle or even their fenders.
TPFT is a tier above basic third party property insurance and covers everything covered by third party property insurance, but offers very little protection for your car. Does it protect your car? You guessed it: arson and theft. If you don’t want to splurge on a composite roof, but live in a fire-prone or crime-prone area, this is a good option.
Comprehensive car insurance not only covers everything covered by third party insurance, but is also a complete package to protect your car against accidents, theft, fire, hail storms, falling trees, etc. You spent a lot of money on your seat, it’s the way to go. This is the most expensive option, but offers the most comprehensive coverage.
All other things being equal, car insurance for young drivers is usually higher than average because young drivers are more likely to be involved in accidents.
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However, experience also plays a role. For example, if you’re under 25 with P-Plates, you’ll find yourself at the very top of the premium tier. Waiving these fees to get a full license can offer some cost savings, but you should expect to pay more than middle-aged adults.
Of course, it’s not everything that plays a role: the car you drive, where you live, parking conditions, and even your gender are taken into account.
So while we can’t tell you the exact price, we’ve identified the best value insurance policies for young drivers. Let’s see:
We host our annual Expert Choice Awards, where we recognize insurance providers who consistently offer lower premiums than the competition. Here are the top 2023 premium picks for young drivers looking for affordable policies and manageable excess.
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As you can see, getting cheap car insurance for a young driver is definitely a must; However, it’s important to note that other factors, such as your age, where you live, and the make and model of your car, can affect the price of your policy.
And it’s not always about the price! Sometimes the best young driver car insurance isn’t always the cheapest option. While price is important, it’s also important to consider the overall value you’re getting from the policy. Getting the balance right is important.
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It’s one thing to simply compare insurance premiums, it’s another to compare value for money, and it’s all about what your auto insurance will cover you and the dollar limits of that coverage. Some auto insurance companies offer these features or only some of them in their standard policies.
So if you’ve narrowed your search and are stuck on a few options, be sure to ask if it’s in your current policy.
It’s for when you break down on the highway and need engine help. With a comprehensive policy, you have to cover roadside assistance and pay extra or outsource it entirely to another company.
If you need replacement shipping after an accident or theft, many policies will cover you for a certain period or dollar amount. Others will include the rental car as an accessory after the accident, regardless of whether you were at fault for the accident. Check your Product Disclosure Statement (PDS) for more information.
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It’s not a common feature, but it’s worth asking. If you are involved in an accident, you can pay an annual premium to keep your premium bonus. Check out the fine print on this one.
If your car is only worth $9,000 (according to the insurance provider) and you insure it for $20,000, that’s a negotiated price. Market value is the amount the insurance company thinks you can sell your car for when you take out the policy. Not all policies allow you to choose between these options, and choosing one may cost you more. Read more about this feature in our Market and Negotiated Car Insurance guide.
You usually have to pay for your annual policy in one lump sum, but some insurance providers offer the option of paying in monthly or weekly installments. Some providers offer this for free, but other providers have a processing fee, but it’s easier to manage your payments.
As a young driver in Australia, your premium is likely to be more expensive than an older driver with good driving experience and a full licence. Let’s take a look at some important car insurance factors for young drivers.
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In general, the simpler your car, the less you pay for car insurance. In most cases, you are not allowed to drive a high performance vehicle without a full license. If someone is caught driving, you can lose your license, face fines, and if you are at fault for the accident, your insurance company can cancel your entire policy.
If you have a driving license on your P plate, you will be rewarded with a discount on your policy. If you’ve completed a ‘safe driving course’, you can get a bigger discount for your honest efforts.
If you’ve been driving every day for 17 years and you’re now 23, that’s six years of driving experience. If you have a good record of safe driving, you can get a discount on your car insurance premiums. It’s okay to ask.
Car insurance is the last thing on your mind when shopping for a new car, but never rush it. By taking the time to compare prices, you can save big every year by finding the best price