Comprehensive car insurance for under 25s Background

Comprehensive car insurance for under 25s

The table below displays comprehensive car insurance policies from our Online Partners for drivers under 25.

Group Manager, Research & Ratings
Content Lead, Canstar
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The initial results in the table above are sorted by Star Rating (High-Low) , then Provider Name (Alphabetical) . Additional filters may have been applied, see top of table for details.

What types of car insurance for under 25 drivers are available in Australia?

There are four main types of car insurance for drivers under 25 years of age, and for  other drivers in Australia:

1. Compulsory third party (CTP) insurance

Compulsory third party (CTP) insurance covers the cost of compensation claims if you harm or fatally injure someone in an accident. You are legally required to have CTP insurance, regardless of which state or territory you live in. It is included in the cost of your car registration (except in New South Wales where you have to purchase it separately and it’s known as Green Slip insurance).

2. Third party property insurance

Third party property insurance covers damage to other people’s cars or other property. It does not cover damage to your own vehicle. It’s an optional cover.

3. Third party fire and theft insurance

Third party fire and theft covers damage to another driver’s car or property, as well as providing cover for your own car if it’s stolen or suffers fire damage. It’s an optional cover.

4. Comprehensive insurance

Comprehensive car insurance provides a higher level of cover for your car in a wider range of circumstances such as accidents, fires, floods, hail and storm damage and theft. It also provides protection for damage to other driver’s cars and property. It’s generally more expensive than third party property cover and third party fire and theft insurance. It’s an optional cover.

You can compare a range of comprehensive car insurance policies on Canstar’s database using the table at the top of the page.

What’s the best car insurance for under 25?

As with a driver of any age, the best car insurance for you if you are a driver under 25 is the one that best suits your circumstances and your budget. For example, you may find that comprehensive insurance is what you need for your car that is brand new and you are a brand new driver, still unsure on the road. Make sure you check out which best insurance policy suits you here.

Frequently Asked Questions about Car Insurance for under 25s

The younger you are, the more expensive your car insurance will generally be. This is because young drivers are statistically more likely to be involved in an accident. For example, according to the Queensland Government, young drivers and riders aged 16 to 24 years old are 60% more likely to be involved in a serious crash than drivers and riders aged 25 to 59 years old.

Young male drivers are also more likely to be involved in a car accident compared to young female drivers. According to statistics from the National Road Safety Partnership Program, the road fatality rate of young men aged 17 to 25 has historically been over three times as high as that of women of the same age bracket.

If your parent or guardian owns the car you’ll be driving, you may be able to ask if you can be added to their car insurance policy. This will typically add an additional cost to the policy, and a higher under-25 year-old driver excess may apply in the event of a claim. Speak to your insurance provider to see if this is an option for you and to find out what you will and won’t be covered for.

Alternatively, you might prefer to take out your own car insurance policy if you live out of home or have your own car.

Based on Canstar’s research, it is generally cheaper to get a comprehensive family policy with cover for a young driver than to buy your own comprehensive policy. If you were to contribute half of the annual cost, this would generally work out cheaper on average.

The exact amount you would be charged on a family or standalone under 25s policy will vary based on the provider and policy you choose, as well as your personal circumstances. Check with your provider  to see whether any conditions apply and how they could impact the cost or cover of your parents’ policy.

Another option for a family looking for a potentially cost-effective and convenient way to insure more than one vehicle (e.g. the parents’ car as well as one driven by an adult child) is a multi-car insurance policy.

If you’re looking to cut down on car insurance costs, you may be able to reduce your premiums by:

  • choosing a 5-Star Rated car insurance policy with Canstar.
  • increasing your car insurance excess (the amount of money you have to pay your insurer if you make a claim)
  • buying your policy online
  • paying your premiums annually rather than in instalments
  • checking for discounts, such as no-claim bonuses which reward drivers who do not claim on their insurance or discounts for completing a safe driving course
  • parking your car in a secure location like a garage if possible, rather than on the street
  • installing anti-theft devices like car alarms, immobilisers or tracking devices
  • avoiding modifying your car, particularly with modifications that change the look or performance of your vehicle.

→ Read more: 10 tips to save money on your car insurance

Lastly, you may be able to save on your car insurance by comparing policies to find one that suits your circumstances and budget. You can compare a range of comprehensive car insurance policies using Canstar’s comparison table at the top of the page.

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About our car insurance experts

Mandy Beaumont, Content Lead, Canstar

Mandy Beaumont
Canstar’s Content Lead, Mandy Beaumont, has had a long career in the publishing and university sector as an award-winning author, journalist and creative writing academic. She’s been a course convenor in creative writing and ­­­­communications at Griffith University for more than a decade, holds a PhD and a master’s in creative writing from RMIT and QUT respectively, and has written for The Big Issue, Melbourne Writers Festival, the Australian Council of Trade Unions the Queensland Nurses and Midwives’ Union, as well as many other well-known newspapers and journals in Australia and overseas. Mandy’s short fiction writing and her novels have won, been shortlisted and longlisted for prestigious prizes and awards such as The Stella Award, the QLD Literary Awards, the Richell Prize, the Dorothy Hewitt Award and the MOTH International Short Story Award. Mandy will have a new novel out with one of Australia’s largest publishing houses, Hachette Publishing in early 2025 called The Thrill of It. After many years of working with trade unions and renting, Mandy has a keen interest­­­ in superannuation (particularly worker’s capital) and the housing market in Australia.

Joshua Sale, Group Manager, Research & Ratings

Joshua Sale

As Canstar’s Ratings Manager, Josh Sale is responsible for the methodology and delivery of Canstar’s Car Insurance Star Ratings and Awards. With tertiary qualifications in economics and finance, Josh has worked behind the scenes for the last five years to develop Star Ratings and Awards that help connect consumers with the right product for them.

Josh is passionate about helping consumers get hands-on with their finances. Josh has been interviewed by media outlets such as the Australian Financial Review, news.com.au and Money Magazine.

You can follow Josh on LinkedIn, and Canstar on Twitter and Facebook.


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Important information

For those that love the detail

This advice is general and has not taken into account your objectives, financial situation or needs. Consider whether this advice is right for you.

Canstar may earn a fee from its Online Partners for referrals from its website tables, and from sponsorship or promotion of certain products. Fees payable by product providers for referrals and sponsorship or promotion may vary between providers, website position, and revenue model. Sponsorship/promotion fees may be higher than referral fees. If a product is sponsored or promoted, it’s an ad and it is clearly marked as such. An ad might appear in different places on our website, such as in comparison tables and articles. Ads may be displayed in a fixed position in a table, regardless of the product's rating, price or other attributes. The location of an ad doesn’t indicate any ranking or rating by Canstar. Payment of fees for ads does not influence our Star Ratings. See How We Get Paid to find out more.

The Car Insurance Star Ratings were awarded in June 2023 and data in the table is current as at that date, updated from time to time to reflect product changes notified to us by product issuers. The results don’t include every provider in the market and we may not compare all features relevant to you. You can find a description of the initial sort order below the table. You can use the sort buttons at the top of each column to re-order the display. Learn more about our Car Insurance Star Rating Methodology. The rating shown is only one factor to take into account when considering products.

The products and Star Ratings in the table might not match your exact inputs in the selector. Sometimes the methodology uses profiles with categories or bands (e.g. income, loan amount or monthly spend), but sometimes a single methodology, without any categories or bands, is applied. The results will show the products that most closely match your selection, based on our profiles. If you are unsure about any terms used in the comparison table please refer to the glossary.

What is a Target Market Determination?

A Target Market Determination (‘TMD’) is a document that explains which people particular financial products may be suitable for (the target market) and sets out any conditions around how financial products can be distributed to consumers.

Why do product issuers provide Target Market Determinations?

From 5 October 2021, TMDs are compulsory for most financial products.

Issuers and distributors of financial products must take reasonable steps that are likely to result in financial products reaching consumers in the target market defined by the product issuer.

We recommend that you consider the TMD before making a purchase decision. Contact the product issuer directly for a copy of the TMD.

Any advice on this page is general and has not taken into account your objectives, financial situation or needs. Consider whether this general financial advice is right for your personal circumstances. You may need financial advice from a qualified adviser. Canstar is not providing a recommendation for your individual circumstances. If you decide to apply for an insurance policy, you will deal directly with the provider, not with Canstar.   It’s important you check product information directly with the provider. Consider the Product Disclosure Statement (PDS) and Target Market Determination (TMD) before making a purchase decision. Contact the product issuer directly for a copy of the PDS and TMD. For more information, read our Detailed Disclosure.

If you are seeking to replace an insurance policy, you should consider your personal circumstances, including continuing the existing cover until the replacement policy is issued and cover confirmed. Your current policy may have different features to products currently on the market. Please consider what features are right for you when comparing insurance products and refer to the provider for further details on a policy.

Companies listed in the table, or in ads, may use or be used by another company to arrange, issue, distribute or sell its insurance policies to customers. For more information on the issuer of the policy, please read the Product Disclosure Statement.