Does a learner driver need to be insured?
If you or your child is learning to drive, insurance can provide important peace of mind.
By law, all registered vehicles in Australia must be covered by Compulsory Third Party (CTP) insurance (known as Green Slip insurance in NSW), which covers legal liability if someone is injured or killed in an accident. CTP insurance is tied to a vehicle, and automatically covers all drivers, including learners.
That said, CTP does not cover damage to cars or property, so if you want cover for this, you’ll need to purchase a separate insurance policy. There’s no specific product called ‘learner driver car insurance’, so to make sure a learner driver is covered, you’ll either need to add them to your existing car insurance policy, or take out a new one for them.
Should I add my child to my car insurance?
The decision to add a learner driver to your existing policy will likely come down to the vehicle they learn in. Your options are to:
- Add them to your existing policy: If your child is learning to drive in the family car, you can usually add them to your own policy. Some may automatically cover learners, but you’ll need to check your policy’s Product Disclosure Statement (PDS) or contact your provider directly to confirm this.
- Take out a separate policy: You’ll need to do this if your child has their own car to learn in and they’ll be driving it more frequently than anyone else.
Listing your child as a driver on your existing policy may add to the cost of your premiums and specific age and inexperienced driver excesses may also apply.
That said, a higher ‘young unlisted driver’ excess may also apply if they cause damage to your vehicle and are not listed on your policy, so adding them is usually worth the expense.
What types of optional car insurance can learner drivers get?
When comparing car insurance for learner drivers, you’ll usually come across different types like third party property damage, third party fire and theft, and comprehensive car insurance.
Third party property damage insurance
Covers the cost of damage to another person’s property, like their car or home. It's the most basic form of optional car insurance and usually the least expensive. It won’t cover damage to your own vehicle though, so it might be suitable if you’re not concerned about the replacement cost of the vehicle your learner is driving.
Third party fire and theft insurance
Covers you for damage to other people's property, but also covers your own vehicle if it’s damaged by fire or stolen by thieves.
Comprehensive car insurance
Covers you for the same things as third party fire and theft, as well as covering your own vehicle in a variety of situations like accidental damage, flooding, storm or hail damage, and theft. Comprehensive policies are generally the most expensive form of optional car insurance, but also offer the greatest peace of mind, especially if a learner is driving your family vehicle.
It’s worth doing your research to make sure you’re getting the best coverage and value for money. Keep an eye out for additional features like after-accident care, choice of repairer, windscreen excess cover, complimentary rental vehicle cover, and roadside assistance. These features may come as standard or as optional extras that you can add to the policy for an additional cost.
What excesses can apply to a policy with a learner driver?
An excess is an amount of money that you contribute when making a claim on your insurance. On top of paying a standard excess, your learner could also be charged an age or inexperience-related excess.
Depending on the policy, these can come in several forms:
- Age or younger driver excess: This is an additional excess applied to any driver under the age of 25.
- Learner driver excess: L-platers can sometimes have their own specific excess.
- Inexperienced driver excess: This type of excess typically applies to learner or provisional drivers over the age of 25 who have only held their licence for a limited time.
- Unlisted driver excess: Some policies require you to list a learner driver in order for them to be covered. This excess could be charged if an undeclared learner or other driver is involved in an accident and needs to make a claim.
- Vehicle-specific excess: An additional excess may come into play based on the type or age of the vehicle being driven. For example, high performance, imported, heavily modified, and/or vintage cars may incur special excesses.
What’s the best car insurance for learner drivers?
The best car insurance for a learner driver can come down to what you’re looking to cover. Think of it this way:
- If a learner is driving the family car, then the most cost-effective option will likely be to add them to your existing car insurance policy.
- If a learner is driving their own car, then the best option will be a standalone insurance policy for them.
