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Car insurance for under-25s

Compare policies and see how you could save on your car insurance.

Car Insurance Compare
1 - 5 of 40
Name Product Roadside assistance Accidental damage Storm Choice of repairer Agreed or market value Bonuses
Bingle Comprehensive
Market
Finder's summary: Our data shows it’s the cheapest comprehensive policy. It just covers the basics such as damage to your car, theft and storms – it doesn’t go in for add-ons and extras.

Who it might be good for: Those wanting a low-cost, no-frills policy.
Budget Direct Comprehensive
Optional
Optional
Agreed or Market
15% online discount
Finder's summary: The 2024 winner of our Best Value Car Insurance award. It's cheaper than most, plus you can lower costs by adding age restrictions.

⭐ Current offer: 15% off your first year's premium when you take out a policy online. T&Cs apply.

Who it might be good for: Anyone who wants a good value policy.
QBE Comprehensive
Green Company
QBE Comprehensive
Optional
Agreed or Market
$75 online discount
Finder's summary: Our best-rated Car Insurer for Customer Satisfaction in 2021/2022 and Green Insurer for the last 3 years.

⭐ Current offer: Save $75 when you purchase a new comprehensive policy online. T&Cs apply.

Who it might be good for: Those who want a trustworthy insurer and more cover than other brands, such as 3-year new car replacement (e.g. they'll give you money for a new car for up to 3 years if yours is written off).
Qantas Comprehensive
Optional
Optional
Agreed or Market
Earn up to 30,000 Qantas Points
Finder's summary: You need car insurance so why not get one that lets you earn Qantas Points? It's good value too (it's underwritten by the same insurer as Budget Direct).

⭐ Current offer: Earn up to 30,000 Qantas Points with every car insured by 30 September. Plus save 15% on your 1st year’s premium when you purchase online. T&Cs apply.

Who it might be good for: People who want more bang for their buck with Qantas Points.
Australia Post Comprehensive
Optional
Agreed or Market
$75 online discount
Finder's summary: Covers a little more than other insurers. You don’t need to pay an excess for windscreen repairs and cover applies to anyone who uses your car.

⭐ Current offer: Get $75 off your first year's comprehensive car insurance premium when you buy online. T&Cs apply.

Who it might be good for: Multiple people using one car.
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Car insurance for under-25s comparison

1 - 8 of 40
Name Product Roadside assistance Accidental damage Storm Choice of repairer Agreed or market value Bonuses
Budget Direct Comprehensive
Optional
Optional
Agreed or Market
15% online discount
Finder's summary: The 2024 winner of our Best Value Car Insurance award. It's cheaper than most, plus you can lower costs by adding age restrictions.

⭐ Current offer: 15% off your first year's premium when you take out a policy online. T&Cs apply.

Who it might be good for: Anyone who wants a good value policy.
QBE Comprehensive
Green Company
QBE Comprehensive
Optional
Agreed or Market
$75 online discount
Finder's summary: Our best-rated Car Insurer for Customer Satisfaction in 2021/2022 and Green Insurer for the last 3 years.

⭐ Current offer: Save $75 when you purchase a new comprehensive policy online. T&Cs apply.

Who it might be good for: Those who want a trustworthy insurer and more cover than other brands, such as 3-year new car replacement (e.g. they'll give you money for a new car for up to 3 years if yours is written off).
Qantas Comprehensive
Optional
Optional
Agreed or Market
Earn up to 30,000 Qantas Points
Finder's summary: You need car insurance so why not get one that lets you earn Qantas Points? It's good value too (it's underwritten by the same insurer as Budget Direct).

⭐ Current offer: Earn up to 30,000 Qantas Points with every car insured by 30 September. Plus save 15% on your 1st year’s premium when you purchase online. T&Cs apply.

Who it might be good for: People who want more bang for their buck with Qantas Points.
ROLLiN' Comprehensive
Agreed
Finder's summary: One of the most cost-effective insurers for under 25s, according to Finder research, with no aged-based excess.

Who it might be good for: Young drivers looking to keep costs down and anyone who’d like to get more flexibility from their car insurance.
Budget Direct Third Party Property, Fire and Theft
Optional
Market
15% online discount
Save 15% on your first year's premium when you purchase a new policy online. T&Cs apply.
Budget Direct Third Party Property Only
Optional
15% online discount
⭐ Current offer: Save 15% on your first year's premium when you purchase a new policy online. T&Cs apply.

Who it might be good for: Drivers who only want cover for damage to another person’s vehicle and up to 15% off your first year.
QBE Third Party Property Damage
Market
Who it might be good for: Drivers who want a relatively cheap policy and a more environmentally-friendly brand – QBE was the 2022 Finder Green award winner.
Qantas Third Party Property Only
Optional
Market
Earn Qantas Points
Earn Qantas Points when you sign up. T&Cs apply.
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How much does insurance for under-25s cost?

ProviderAverage costApply
Rollin' car insurance

ROLLiN'

$1,226
Get a quote
Budget direct logo

Budget Direct

$1,339
Get a quote
Bingle logo

Bingle

$1,364
More info
Hume Bank Logo

Hume Bank

$1,395
More info
Virgin money

Virgin Money

$1,472
More info

Why is car insurance for under 25s so expensive?

Car insurance for young drivers, specifically those under 25 years old, is so expensive because insurers see these drivers as risky and will therefore inflate the premium to cover this risk. If you're a young driver with a perfect driving record, you'll likely still find that insurance is expensive. If you're a young driver with a a bad driving history then you might find it difficult to get cover at all.
It's not all bad news though. There are ways that younger drivers can save on their car insurance premium. See below.

3 ways young drivers can save on car insurance

Number 1

Look for sign up discounts

Many car insurers offer sign up discounts that can translate to $100 or more in savings. Instead of auto-renewing your exisiting policy, it can be so worth shopping around and seeing what other providers can offer you. Keep in mind, a percentage discount will often be more valuable than just a cash amount discount. Take time to run the numbers.

Number 2

Be willing to make a phone call

Some insurers will be happy to negotiate on price over the phone, all you've got to do is call and tell them you're thinking of switching providers. Do some research prior so you can prove that similar products are available at a cheaper rate, if asked. This is a tried & tested tip by Finder's insurance team.

Number 3

Choose a higher excess

Choosing a higher excess will lower the cost of your premium. Just be aware that this is the amount you'll have to pay if you ever need to make a claim, so be sure you can afford it.

Expert tips about getting car insurance for under-25s

What's the best car insurance for under-25s?

The best car insurance for a young driver is one that suits your circumstances and offers you the most value. That means the policy that's right for one person will be different from the one that's right for someone else.

Here's how to find the best policy based on your situation:

CarWhich insurance?
You bought a new car or you drive an expensive oneComprehensive insurance is likely the best level of insurance for you since it will cost you dearly if your car is totalled. It covers your car in a wide variety of situations including accidents you cause, natural disasters and uninsured drivers. Plus, if you bought your car with finance, your lender will probably require that you have comprehensive cover.
You have an expensive car and you drive long distancesThe best policy for you would probably be a comprehensive policy, with all the options. Besides giving you the full protection of a comprehensive policy, it can also include some extra selling points such as a hire car after a bingle (if you cause the accident), sending a tow truck to you if you break down and replacing your windscreen without requiring you to pay an excess. Always check the PDS (the terms and conditions) for an insurance policy so you know exactly what's included in each one.
Your car isn't super expensive but you live in a high-risk areaThird party fire and theft is the best policy for someone who lives in a high-crime area or somewhere that's prone to bushfires – but doesn't need the full cover of a comprehensive policy. It'll cost you less than comprehensive insurance, but it still protects your car against fire and theft. Again, check the PDS of the insurance policy you're considering to make sure exactly what's covered and what's excluded.
You drive a bangerThird party property damage is probably the best cover for you if your car isn't worth much and you can afford to replace it. Third party property damage doesn't protect your car, but it does protect you if you damage other people's stuff – like their cars or property.
You live with your parentsIf you don't mind driving your parents' car (and you drive it less than they do), the best option for you is to stay on your parents' policy so you can save some money. Make sure you don't end up committing insurance fraud though by having your parents do something called "fronting".

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FAQs

Jason Loewenthal's headshot
To make sure you get accurate and helpful information, this guide has been edited by Jason Loewenthal as part of our fact-checking process.
Gary Ross Hunter's headshot
Editor, Insurance & Innovations

Gary Ross Hunter was an editor at Finder, specialising in insurance. He’s been writing about life, travel, home, car, pet and health insurance for over 6 years and regularly appears as an insurance expert in publications including The Sydney Morning Herald, The Guardian and news.com.au. Gary holds a Kaplan Tier 2 General Advice General Insurance certification which meets the requirements of ASIC Regulatory Guide 146 (RG146). See full bio

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Gary Ross has written 730 Finder guides across topics including:
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2 Responses

    Default Gravatar
    liddellfamily@live.com.auJuly 8, 2017

    My son is 17. Can I insure a Subaru Forester 2007 XT turbo with him as the second driver? If so, who will insure him? Thanks

      AvatarFinder
      RenchJuly 9, 2017Finder

      Hi,

      Thanks for reaching out to us. Please note that we are not affiliated with any company we feature on our site and so we can only offer you general advice.

      You’re actually already on the correct page on where you can get helpful information and where you can compare your options for your son. You may click on the name of your preferred insurance on the list to see more details then you may click on the green ‘Get Quote’ button to get in contact with them and inquire. You should be able to inquire with them on what will be the requirements.

      Best regards,
      Rench

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