How Much Is Car Insurance for Young Drivers in Australia?
In a Nutshell: Young drivers (18–24) pay the highest car insurance premiums in Australia — often $1,500–$3,800 per year for comprehensive cover. That's 2–3× what a 40-year-old would pay for the same car. But there are proven ways to reduce the cost significantly.
Young Driver Premiums by Age (2026)
| Age | Typical Comprehensive Premium (Car Value $15,000) | Typical Third Party Property |
|---|---|---|
| 18 | $2,800–$3,800 | $500–$800 |
| 19 | $2,400–$3,400 | $450–$700 |
| 20 | $2,000–$2,800 | $400–$650 |
| 21 | $1,600–$2,400 | $350–$550 |
| 22 | $1,400–$2,000 | $300–$500 |
| 23 | $1,300–$1,800 | $280–$450 |
| 24 | $1,200–$1,700 | $260–$420 |
💡 Good news: Premiums drop noticeably each year after 18. By 25, you'll pay significantly less.
Why Young Drivers Pay More
| Reason | Why It Increases Premium |
|---|---|
| Statistical risk | 18–24 age group has the highest accident rate per km driven |
| Inexperience | Less driving experience = higher chance of errors |
| No claim history | No established no-claim bonus — starts at zero |
| Night driving | Young drivers more likely to drive late at night (higher risk) |
| Vehicle choice | Young drivers are drawn to cheaper, older cars with fewer safety features |
| Speeding offences | Higher rate of speeding and demerit offences |
7 Ways Young Drivers Can Save Money
1. Be a Named Driver on a Parent's Policy
- Adding yourself as a named driver on a parent's policy can save 30–50%
- The policy is in the parent's name with their no-claim bonus
- You still build your own no-claim bonus on some policies
2. Choose the Right Car
| Vehicle | Annual Comprehensive (19yo) |
|---|---|
| Toyota Corolla (2018+) | $1,800–$2,400 |
| Hyundai i30 (2018+) | $1,700–$2,300 |
| Subaru WRX (any) | $2,800–$4,500 ❌ |
| Mazda 2 (2018+) | $1,600–$2,200 |
| Ford Falcon (2008+) | $2,000–$2,800 |
| Suzuki Swift (2015+) | $1,500–$2,000 ✅ |
3. Increase Your Excess
| Excess | Premium Saving vs $500 Excess (Young Driver) |
|---|---|
| $800 | Save 10–15% |
| $1,000 | Save 15–20% |
| $1,500 | Save 20–30% |
4. Drive Less
- Low-kilometre policies reward drivers under 10,000 km/year
- Can save 5–15%
5. Complete Driver Training
- Some insurers offer discounts for completing:
- Keys2drive program
- NRMA Safer Driving Course
- Your state's graduated licensing scheme
6. Park in a Garage
- Street parking adds 5–15% to premiums for young drivers
- Off-street or garage parking = discount
7. Pay Annually, Not Monthly
- Monthly payment plans add 10–20% in interest and fees
- Paying upfront saves this cost
Best Insurers for Young Drivers
| Insurer | Why It's Good for Young Drivers |
|---|---|
| Budget Direct | Usually cheapest base premiums |
| Youi | Offers personalised pricing — good if you're low risk |
| Bingle | Online-only, lower overhead = cheaper |
| AAMI | Good multi-policy discounts if you live with parents |
| NRMA | Good for named driver policies, roadside assistance included |
| RACV / RACQ / RAC | Club discounts for young members |
Key Takeaway
- Young drivers pay $1,500–$3,800 for comprehensive — 2–3× the average.
- Premiums drop every year until age 25, then fall more slowly.
- Cheapest strategy: be a named driver on a parent's policy.
- Car choice matters hugely — a Corolla can be half the price of a sports car.
- Increase your excess if you can afford to — biggest single saving.
- Compare 3–4 insurers specifically targeting young driver policies.
- Building a no-claim bonus from day one saves you thousands over time.
Last updated: July 2026
Disclaimer: This article provides general information about car insurance for young drivers in Australia. Individual quotes will vary. Always compare multiple insurers and read the PDS before purchasing.