What Is a Young Driver Excess in Australia?
In a Nutshell: A young driver excess is an additional excess that insurers apply when a driver under 25 (or sometimes under 21) is at fault in an accident. It's on top of your standard excess — and can add $300–$800 to your total excess. Some insurers waive it if certain conditions are met.
How Young Driver Excess Works
| Typically Applies To | Typical Amount | When It's Applied |
|---|---|---|
| Drivers under 21 | $400–$800 | In addition to standard excess |
| Drivers under 25 | $200–$600 | In addition to standard excess |
| Learner drivers (on parent's policy) | $200–$500 | If the learner is at fault |
| Red P-platers | $300–$600 | If the P-plater is at fault |
| Named driver (under 25) on a policy | $200–$500 | If the named driver is at fault |
Young Driver Excess by Insurer
| Insurer | Under 21 | Under 25 | Notes |
|---|---|---|---|
| NRMA | $500–$800 | $400–$600 | Waived if the young driver is a named driver with 3+ years of experience |
| AAMI | $400–$700 | $300–$500 | Waived if the young driver completes a Safe Driving Course |
| Allianz | $400–$600 | $300–$500 | Can be reduced by increasing voluntary excess |
| Budget Direct | $400–$600 | $300–$500 | Not waived under most circumstances |
| Youi | $300–$600 | $200–$500 | Varies based on individual risk profile |
| Bingle | $400–$600 | $300–$500 | Standard young driver excess applied |
| QBE | $400–$700 | $300–$500 | Check policy for conditions |
💡 Note: Young driver excess is applied PER CLAIM. If a 19-year-old at-fault driver has a $500 standard excess + $500 young driver excess, the total excess is $1,000.
Real Examples
| Scenario | Standard Excess | Young Driver Excess | Total Excess |
|---|---|---|---|
| 19yo own policy, at fault | $500 | $500 | $1,000 |
| 19yo named driver on parent's policy, at fault | $500 | $400 | $900 |
| 22yo own policy, at fault | $500 | $300 | $800 |
| 24yo own policy, at fault | $500 | $200 | $700 |
| 25+ (no young driver excess) | $500 | $0 | $500 |
When Is Young Driver Excess Waived?
| Condition | Typical Result |
|---|---|
| Young driver is NOT at fault | ✅ No excess applies (at-fault driver's insurer pays) |
| Young driver is over 25 | ✅ Standard excess only |
| Young driver has 3+ years of full licence experience | ⚠️ Some insurers waive it |
| Young driver completed a Safe Driving Course | ⚠️ Some insurers waive or reduce it |
| Young driver is the policyholder (not named driver) | ⚠️ Still applies in most cases |
| Theft of car — no fault of young driver | ✅ Standard excess only |
How to Avoid or Reduce Young Driver Excess
| Strategy | How Much It Helps |
|---|---|
| Wait until 25 to get your own policy | ✅ Avoids the excess entirely |
| Stay as a named driver on a parent's policy | ✅ Excess may be lower than on your own policy |
| Complete a Safe Driving Course | 5–15% chance of waiver (varies by insurer) |
| Choose an insurer with lower young driver excess | Up to $300 difference between insurers |
| Increase your voluntary excess | Reduces premium — doesn't remove young driver excess |
| Drive a safe, low-risk car | Reduces the premium and may reduce excess loading |
Is Young Driver Excess Legal?
| Question | Answer |
|---|---|
| Is it legal? | ✅ Yes — insurers are allowed to assess risk by age |
| Is it age discrimination? | ⚠️ It's a risk-based pricing practice, not unlawful discrimination |
| Can you negotiate? | ⚠️ Rarely — but comparing insurers can help you find lower amounts |
| Does every insurer charge it? | ✅ Most do — but the amount varies significantly |
Key Takeaway
- Young driver excess: $200–$800 on top of your standard excess.
- Applies to drivers under 25 (under 21 for higher amounts).
- Total excess for an at-fault young driver can be $700–$1,300.
- Some insurers waive it if the young driver has 3+ years of driving experience.
- Best way to avoid: stay on a parent's policy until 25.
- Comparing insurers can save $200–$300 in young driver excess.
- Safe Driving Courses may help reduce or waive it with some insurers.
Last updated: July 2026
Disclaimer: This article provides general information about young driver excess in Australian car insurance. Amounts and waiver conditions vary by insurer. Check your PDS or ask your insurer for specific details.