How Does P1 vs P2 (Red vs Green P-Plate) Affect Insurance?
In a Nutshell: P1 (red P, typically age 17–18) drivers pay higher insurance premiums than P2 (green P, typically age 18–20) drivers. The difference is about 15–25% — not as big as the gap between Learner and P1, but still significant. By the time you get your full licence (green Ps or opens), premiums drop by another 20–40%.
P1 (Red P-Plate) — Highest Risk Group
| Licence Stage | Typical Age | Insurance Cost Level |
|---|---|---|
| Learner | 16–17 | Moderate (on parent's policy) |
| P1 (Red P) | 17–18 | Highest — 20–50% more than a full licence driver |
| P2 (Green P) | 18–20 | High — but 15–25% less than P1 |
| Full licence (opens) | 20–22 | Dropping — 20–40% less than P1 |
P1 vs P2 Premium Comparison
Same driver profile, same $20,000 car:
| Licence Type | Annual Comprehensive | Annual Third Party Property |
|---|---|---|
| Learner (on parent's policy) | $1,000–$1,500 | $250–$400 |
| P1 (Red P) — own policy | $2,000–$3,200 | $500–$750 |
| P2 (Green P) — own policy | $1,600–$2,600 | $400–$600 |
| Full licence (22yo) | $1,200–$1,800 | $300–$450 |
Why P1 Is More Expensive Than P2
| Factor | P1 (Red P) | P2 (Green P) |
|---|---|---|
| Driving experience | 3–12 months | 12–24 months |
| Accident rate (statistical) | Highest per km of any licence stage | Lower than P1 |
| Speed limits | Restricted (90–100 km/h depending on state) | Higher limits (100 km/h) |
| Passenger restrictions | Yes (most states) | Fewer restrictions |
| Zero BAC | Yes (mandatory) | Yes (mandatory) |
| Demerit point threshold | Lower (4 points typically) | Higher (7 points typically) |
💡 Insurers know this data: P1 drivers have the highest accident rate per vehicle km of any licence stage. The risk drops significantly after the first 12 months of solo driving.
P-Plate Restrictions by State (and Insurance Impact)
| State | P1 (Red) Age | P1 Restrictions | P2 (Green) Age | P2 Restrictions |
|---|---|---|---|---|
| NSW | 17–18 | 4 pts, max 90 km/h, no midnight passengers | 18–20 | 7 pts, max 100 km/h |
| VIC | 18 | 4 pts, max 90 km/h, no midnight passengers | 18–21 | 7 pts, max 100 km/h |
| QLD | 17–18 | 4 pts, max 90 km/h, engine restrictions | 18–19 | 6 pts, max 100 km/h |
| SA | 16–18 | 4 pts, max 100 km/h | 17–19 | 6 pts |
| WA | 17–18 | 4 pts, max 100 km/h | 18–19 | 6 pts, max 110 km/h |
Insurance note: Some insurers ask about licence type directly. Others only ask about age. But if you're P1 and age 17–18, insurers effectively know.
How P-Platers Can Save on Insurance
| Strategy | How Much It Helps |
|---|---|
| Stay on parent's policy as a named driver | Save 30–50% vs own policy |
| Drive a safe, cheap-to-insure car | Save 30–60% — avoid sports cars |
| Increase your excess | Save 15–25% |
| Build your no-claim bonus | Each claim-free year saves 10–20% |
| Complete a Safer Drivers Course | Some insurers offer 5–10% off |
| Garage parking | Save 5–15% |
| Limit kilometres | Save 5–15% if under 10,000 km/year |
| Pay annually | Save 10–15% on monthly fees |
What Happens When You Get Your Full Licence?
- Premiums drop immediately (you're no longer in the highest-risk category)
- Your no-claim bonus continues to build
- You can insure a wider range of vehicles
- Some insurers offer "full licence discount" — ask your insurer
Key Takeaway
- P1 (red P) drivers pay the highest insurance rates — 20–50% more than full licence holders.
- P2 (green P) drivers pay 15–25% less than P1, but still well above full licence rates.
- The best way to save: stay on a parent's policy as a named driver until you get your full licence.
- Choose a safe, cheap-to-insure car — avoid anything with a turbo or V8.
- Build your no-claim bonus from day one (even as a named driver, some policies offer this).
- Every claim-free year significantly reduces your premium when you move to your own policy.
Last updated: July 2026
Disclaimer: This article provides general information about how P1 and P2 provisional licence stages affect car insurance in Australia. Individual premiums vary by insurer, state, age, vehicle, and personal history.