Worked quotes and renewal checklists
Young driver car insurance in Australia: L and P platers, age excess and listing drivers
How car insurance works for learner and provisional drivers in Australia, with age and inexperienced driver excesses, listing vs not listing, and a worked comparison.
Young drivers cost more to insure because they are statistically more likely to crash, so Australian insurers add premium when a driver under a set age (often 25) is listed and apply an age excess if they crash. Drivers recently licensed, including older drivers new to an Australian licence, may also trigger an inexperienced driver excess. The safest approach is to list every young driver who regularly drives the car: the premium is higher, but leaving them off usually means a larger unlisted driver excess or a refused claim. Learner drivers are often treated differently, so read the PDS.
This guide sits in the renewal checklist section.
Learner and provisional drivers
Each state runs a graduated licensing system with learner (L) and provisional (P1/P2, or red and green P) stages. Car insurance does not follow these stages directly; insurers use the driver's age and the number of years they have held a licence. Common patterns:
| Driver | How insurers often treat them |
|---|---|
| Learner driving with a supervising licensed driver | Many policies waive the age or inexperienced excess, or treat learners differently, if the supervisor is in the car; conditions vary |
| P plater, listed on the policy | Higher premium; age excess and possibly inexperienced excess in a claim |
| P plater, not listed, occasional driver | Unlisted driver excess on top of age excess, or no cover under some policies |
| Under 25 with a driver age restriction on the policy | May not be covered at all if the policy excludes drivers under the restricted age |
| Driver over 25 newly licensed in Australia | Inexperienced driver excess may apply, depending on the insurer and overseas licence history |
Check the PDS and the certificate of insurance for exact ages, licence periods and amounts.
Listing vs not listing: a worked example (illustrative)
The Nguyen family car has comprehensive cover. Their daughter Linh, 19, holds a P2 licence and drives the car about twice a week. Policy terms (illustrative):
- Basic excess: $750
- Age excess, drivers under 25: $1,300
- Inexperienced driver excess (licensed under 2 years): $800
- Unlisted driver excess: $2,000
- Premium without Linh listed: $1,280
- Premium with Linh listed: $1,890
Annual difference: $610.
Claim: Linh causes $7,500 damage in a crash. She has held her licence for 18 months.
| Linh listed | Linh not listed | |
|---|---|---|
| Premium | $1,890 | $1,280 |
| Excesses | $750 + $1,300 + $800 = $2,850 | $750 + $1,300 + $800 + $2,000 = $4,850 |
| Insurer pays | $4,650 | $2,650 |
| Family's total cost for the year | $4,740 | $6,130 |
Not listing her saves $610 in a claim-free year but costs $1,390 more in a year she has an at-fault claim. More importantly, if the insurer asked who regularly drives the car and the family answered without Linh, that is likely to be a misrepresentation. The insurer could reduce the claim further or, in serious cases, refuse it. See misrepresentation and underinsurance.
Ways to manage the cost legitimately
- List the young driver on the car they actually drive. Insuring a cheaper, older car for the young driver, with that driver listed, can cost less than listing them on an expensive car.
- Compare insurers. The loading for young drivers differs widely between insurers. Compare quotes with the same drivers listed.
- Consider a higher basic excess, remembering it adds to the age excess. See choosing your excess.
- Check telematics or kilometre-based policies if the young driver drives little. Read the conditions on how driving data is used.
- Remove them when they stop driving the car. If they move out and buy their own car, update the policy.
The young driver's own first policy
When a young driver buys their own car, they will usually start with a low no claim bonus, which makes the premium high. Ways to keep it manageable:
- Choose a car that is cheaper to insure: get quotes before buying.
- Consider fire and theft or third party property if the car is cheap and could be replaced, but at least third party property cover to protect against large liability claims. See fire and theft vs comprehensive.
- Ask whether being a listed driver on a parent's policy for some years counts towards their own rating with that insurer.
- Pay annually if possible; see paying monthly or annually.
Checklist for parents
- Who drives each car, and how often?
- Are all regular drivers listed, with correct licence dates?
- Does the policy have a driver age restriction that would exclude a young driver?
- What total excess would apply if the young driver crashed?
- What happens if a learner drives with a supervisor?
- Does the young driver know what to do after an accident? See car insurance mistakes.
Frequently asked questions
Is a learner driver covered on my car insurance?
Many policies cover learners driving with a licensed supervisor, sometimes without an age excess, but terms vary. Read the PDS or ask the insurer before the first lesson.
At what age does the young driver excess stop?
It depends on the insurer; common thresholds are 21 or 25. Check the PDS.
Does CTP cover a P plater?
Yes. CTP is attached to the vehicle and covers injuries caused by any driver of the registered vehicle, under the scheme's rules, regardless of licence stage.
Can I insure the car in my name if my child is the main driver?
You must answer the insurer's questions about the main or regular driver accurately. Listing yourself as the main driver when you are not can be a misrepresentation.
Sources
- Moneysmart — insurance for young drivers
- Service NSW — NSW licensing stages
- VicRoads — Victorian licensing
- ASIC — misrepresentation and disclosure guidance
- Australian Financial Complaints Authority — disputes about driver excesses
