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 leaner 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 if they need to make a claim.
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.
When choosing a stand-alone policy, keep in mind that third-party insurance covers damage they may do to others’ vehicles or property, while comprehensive insurance provides the maximum protection, covering their own vehicle as well as others’ property.
You’ll need to carefully weigh up the pros and cons of third party vs comprehensive insurance. While a third-party policy may have lower premiums, it doesn’t cover repair or replacement costs if the driver damages their own vehicle.
How much does it cost to insure a learner driver?
The cost to add a learner driver to your policy or for them to take out their own will depend on several factors:
- The age, genders, and experience levels of the drivers on the policy
- The make, model, and age of the car and whether it has any non-standard features, accessories, or modifications
- Where the car is kept during the day and at night, including where it’s parked and its proximity to natural disaster risks and crime
- How often and far you and the drivers on the policy drive and if the car is driven during peak hours
- The claims and driving history of the drivers on the policy
- The chosen excess
- Any optional features you/the learner chooses to add to the policy
You can also explore how much you can expect to pay on average for comprehensive car insurance by age, gender, and state/territory and see how the price of two separate policies could compare to adding the learner to your existing policy.
Why is car insurance more expensive for learner drivers?
Learner drivers in Australia sit in what insurers consider to be a high-risk group, which means they’ll typically pay more for car insurance. This is usually due to their lack of experience on the road and higher likelihood of making a claim.
How do you add a learner to your car insurance?
Typically, you can add a learner to your existing car insurance policy by contacting your provider and asking them to make the change, or doing it yourself via their app or online portal.
Depending on your insurer and the policy you have, you may need to remove any driver age restrictions in place, and add the name of the learner driver to the policy.
Keep in mind that your insurer may adjust your premiums to account for the additional risk of having an inexperienced driver on your policy.
How can I get cheap car insurance for learner drivers?
A few ways you could lower your car insurance premium when insuring a learner driver are:
- Parking your car in a secure location like a lockable garage rather than on the street.
- Considering low kilometre or ‘pay as you drive’ policies if you drive under certain kilometre thresholds (e.g., under 10,000 kilometres per year).
- Increasing your excess, which can lower your premium (making sure you can afford the higher excess amount in the event of a claim).
- Accessing available discounts you may be eligible for – including loyalty, safe driver/no-claims, multi-policy, and discounts when you buy a new policy online.
- Paying premiums annually, as this may be cheaper overall than paying month-to-month.
- Insuring your vehicle for its market value, rather than an agreed value.
- Considering whether including certain optional extras on your policy is worthwhile. You might want to look at how much it would cost to buy the add-on coverage separately rather than as part of your policy.
- Some providers may offer discounts for having security devices like alarms and immobilisers.
