Car insurance for under 25s

Compare car insurance for under 25 year olds, choose from 30+ policies and save over $300 a month.

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Car insurance for under 25 comparison

Getting car insurance when you're young can be hard, but our comparison table makes it easier. It lets you filter by what’s important to you so you can pay as much or as little as you want. We can’t give you an exact price — because each policy is tailored to your circumstances — but keep scrolling for a cost analysis of the cheapest car insurance for under 25 year olds.

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: Awarded the 2021 Finder Award for Car Insurance - Value in QLD, SA, TAS, VIC, WA and Car Insurance - Features in NSW, VIC, WA, this policy offers solid coverage at a low cost. Budget Direct's claims service has received a 4.2/5 based on nearly 5,000 customer reviews.

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

Who it might be good for: People who want a comprehensive policy without breaking the bank.
Youi Comprehensive
Optional
Agreed or Market
Finder's summary: Youi Comprehensive Car Insurance is one of the few providers to include roadside assistance in its policy. You'll also get access to YouiRewards which gives you discounts on furniture, parking and more. Youi also has a live chat feature on its site to talk through any questions.

Who it might be good for: People over 25 who want comprehensive cover with a focus on customer service.
Qantas Comprehensive
Optional
Optional
Agreed or Market
Earn up to 20,000 Qantas Points
Finder's summary: You'll be able to choose how comprehensive you want your cover to be with optional extras like choice of repairer and the option of agreed or market value.

⭐ Current offer: Earn Qantas Points for joining and paying your premium. Sign up today and earn up to 20,000 Qantas Points (points awarded will be based on your premium). T&Cs and eligibility apply.

Who it might be good for: People who'd like to earn Qantas Points.
Coles Comprehensive
Optional
Agreed or Market
10% online discount
Finder's summary: With Coles comprehensive car insurance, you could earn double flybuys points at Coles supermarkets and you can get $10 off your Coles grocery bill every time you redeem 2,000 Flybuys points. If your car is damaged, you could benefit from a one-week turnaround on repairs.

⭐ Current offer: Get 10% off your first year's premium when you take out a policy online. T&Cs apply.

Who it might be good for: Coles customers and Flybuys collectors.
Bingle Comprehensive
Market
Finder's summary:Bingle consistently comes up as one of the cheaper insurers out there. It only covers the basics. You don't get to choose your own repairer, you're not covered for personal items in the car and unless you add it as an option, you won't get a hire car if your car is stolen. But this keeps its premiums low.

Who it might be good for: Someone who wants a low-cost option that covers them for the basics.
QBE Comprehensive
Green Company
QBE Comprehensive
Optional
Agreed or Market
$75 online discount
Finder's summary: QBE is a sustainable insurance company and also Finder's Green Insurer of the Year 2021 award winner. This policy offers the highest level of protection available from QBE including three-year new car replacement.

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

Who it might be good for: Those that are looking for a more environmentally friendly insurance choice.
Huddle Black Comprehensive
Agreed or Market
Finder's summary: Huddle's black comprehensive is its cover with highest limits and exclusive benefits. It includes roadside assistance. You can also get up to $2,000 for emergency travel and accommodation and up to $30 million legal liability cover.

Who it might be good for: Someone who wants a 24/7 claims processing.
ahm Comprehensive
Optional
Both
$50 Visa e-gift card
Finder’s summary: ahm comprehensive car insurance lets you choose higher excess to reduce your premiums. Its Fixed Kilometre Plan can save you up to 30% compared to its standard comprehensive cover.

⭐ Current offer: Sign up for ahm car insurance and you'll enjoy a $50 Visa e-gift card*. Offer ends 30 Jan.

Who it might be good for: People who drive less than 15,000 km per year.
Australia Post Comprehensive
Optional
Agreed or Market
$75 online discount
Finder's summary: Australia Post car insurance offers comprehensive cover for things like theft, fire, new for old replacement and emergency accommodation and transport. Cover also extends to anyone who uses your car, not just you.

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

Who it might be good for: If multiple people use the one car and you don’t want to worry about listing all drivers.
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Compare up to 4 providers

How much does insurance for under 25s cost?

The cost of car insurance varies for each individual – the amount you pay for your policy will be different to your mates. The table below shows real figures based on 4 driver profiles: 2 males (aged 18 and 21 at the time of the quote) and 2 females (aged 18 and 21 at the time of the quote).

Each is a Sydney-based driver who has no claims history and drives a Toyota Corolla. You can find our methodology below.

Monthly cost for an 18-year-old female

CompanyThird party propertyComprehensiveApply

Budget Direct

$68.76
$190.20
Get quote
Bingle logo

Bingle

$67.27
$132.20
Get quote

NRMA

$78.36
$208.16
More info

AAMI

$79.18
$171.63
More info
Coles car insurance

Coles

$47.09$173.14Get quote
Virgin Money

Virgin Money

$76.40$205.79More info
Picture not described

GIO

$80.35$229.73More info
Picture not described

Suncorp

$121.40$279.29More info
QBE Logo

QBE

$73.86$356.48Get quote

Quotes obtained September 2021

How did we get these costs?

  • Female driver born 1/1/2003
  • Silver 2018 Toyota Corolla Hatchback Hybrid 5dr Auto
  • Licence acquired in 2020
  • Safe driver with no claims made in the past 2 years
  • Drives 10,000-15,000 km per year
  • Adjusted excess to $850 where possible
  • Driver located in Sydney
  • Policy starting September 2021

Monthly cost for a 21-year-old female

CompanyThird party propertyComprehensiveApply

Budget Direct

$49.53
$140.77
Get quote
Bingle logo

Bingle

$50.14
$105.18
Get quote

NRMA

$51.46
$124.90
More info

AAMI

$63.07
$111.71
More info
Coles car insurance

Coles

$45.73$166.99Get quote
Virgin Money

Virgin Money

$55.95$151.40More info
Picture not described

GIO

$64.12$153.71More info
Picture not described

Suncorp

$95.56$204.03More info
QBE Logo

QBE

$55.05$217.82Get quote

Quotes obtained September 2021

How did we get these costs?

  • Female driver born 1/1/2000
  • Silver 2018 Toyota Corolla Hatchback Hybrid 5dr Auto
  • Licence acquired in 2020
  • Safe driver with no claims made in the past 2 years
  • Drives 10,000-15,000 km per year
  • Adjusted excess to $850 where possible
  • Driver located in Sydney
  • Policy starting September 2021

Monthly cost for an 18-year-old male

CompanyThird party propertyComprehensiveApply

Budget Direct

$70.41
$184.38
Get quote
Bingle logo

Bingle

$85.08
$161.66
Get quote

NRMA

$88.68
$238.10
More info

AAMI

$102.69
$184.72
More info
Coles car insurance

Coles

$53.82$205.77Get quote
Virgin Money

Virgin Money

$78.26$200.10More info
Picture not described

GIO

$103.52$251.71More info
Picture not described

Suncorp

$158.67$306.34More info
QBE Logo

QBE

$95.62$414.94Get quote

Quotes obtained September 2021

How did we get these costs?

  • Male driver born 1/1/2003
  • Silver 2018 Toyota Corolla Hatchback Hybrid 5dr Auto
  • Licence acquired in 2020
  • Safe driver with no claims made in the past 2 years
  • Drives 10,000-15,000 km per year
  • Adjusted excess to $850 where possible
  • Driver located in Sydney
  • Policy starting September 2021

Monthly cost for a 21-year-old male

CompanyThird party propertyComprehensiveApply

Budget Direct

$50.90
$137.26
Get quote
Bingle logo

Bingle

$63.33
$128.61
Get quote

NRMA

$56.87
$141.58
More info

AAMI

$70.90
$113.24
More info
Coles car insurance

Coles

$52.33$187.28Get quote
Virgin Money

Virgin Money

$57.53$147.54More info
Picture not described

GIO

$71.84$161.44More info
Picture not described

Suncorp

$107.97$214.15More info
QBE Logo

QBE

$67.53$238.62Get quote

Quotes obtained September 2021

How did we get these costs?

  • Male driver born 1/1/2000
  • Silver 2018 Toyota Corolla Hatchback Hybrid 5dr Auto
  • Licence acquired in 2020
  • Safe driver with no claims made in the past 2 years
  • Drives 10,000-15,000 km per year
  • Adjusted excess to $850 where possible
  • Driver located in Sydney
  • Policy starting September 2021
Your cost will differ depending on your circumstances. Some things that can affect the cost of your quote include your gender, the type of car you drive, the colour of the car, how long you have been driving, the amount of cover you need, plus more. Be sure to read the PDS to find cover that suits you.

What is the cheapest car insurance for under 25 females?

  • The cheapest insurance brand for our 18-year-old female profile is Bingle if she's getting a comprehensive policy ($132.20) and Coles if she's looking for third party property cover ($47.09).
  • For a 21-year-old female, the least costly is Coles for third party cover ($45.73) and Bingle for comprehensive ($105.18).

The big takeaway is what's cheapest for you at one stage in life is not necessarily going to be the cheapest throughout your life, especially as your needs change. That's why it's a good idea to compare policies every so often and switch if you find a better deal elsewhere.

What is the cheapest car insurance for under 25 males?

Among the brands we compared, the cheapest policies for our male profiles are different for almost every combination of age and policy type. Here is what we found:

  • For our 18-year-old male, the cheapest policy is Bingle for comprehensive cover ($161.66) and Coles for a third party property policy ($53.82).
  • For our 21-year-old male, the cheapest policy is Bingle for comprehensive cover ($128.61) and Budget Direct for third party cover ($50.90).

As you can see, prices can vary widely based on your age and your needs, so make sure you compare your options as a habit to make sure you're getting the best deal.

Under 25 insurance tip: Look for policies with low age excesses

An excess is what you pay when you make a claim. There's more than one type of excess and these can quickly add up for young drivers.

For example, if your mate crashes your car while on a Maccas run, you could be on the hook for 3 excesses:

  1. The policy's standard excess
  2. Another excess because of the driver's young age
  3. And another one based on the fact that the driver isn't listed on your insurance policy.

This table shows 4 different examples of excesses you could be responsible for and how much the 4 major underwriters charge for each. So before you sign on the dotted line, carefully look at what excesses you'll pay if you want to claim:

UnderwriterDriver under age 21Driver aged 21-24Inexperienced driverUnlisted driver

Auto & General

$600

$500

$500

$600

Insurance Australia Group

$800

$450

$400

No excess

Suncorp logo new

Suncorp

$400

$400

$400

$1,400

Hollard

$1,200

$800

$800

$1,600- $2,000

8 ways young drivers can save on car insurance

While it's more expensive to insure an under 25 driver, there are ways you can reduce the cost of your premium. These include the following:

  1. Choose the right car. The type of car you drive plays a major role in how much you'll pay for insurance at any age. Smaller, cheaper and lower performance vehicles are great for cutting the cost of insurance. Other factors may include whether the type of car is commonly stolen, if it was made in Australia, if it has a good safety rating and if it's statistically regularly involved in accidents.
  2. Do you need to claim? Be smart when deciding to make a claim. It might save you money in the short term, but it will wipe out any no claims bonus you may have and put a black mark on your claims record.
  3. Bundle where you can. If you're insuring multiple vehicles or have an existing home insurance policy, check if the insurer offers multi-policy discounts.
  4. Increase your excess. Paying a higher excess is a tried and true way to lower your premium. However, you're playing a risky game should you ever need to make a claim, so make sure the excess isn't more than you can afford.
  5. Secure your car. Parking in a garage or off the street can help lower your premium. Installing security systems such as alarms, tracking devices and immobilisers can also help you save on car insurance.
  6. Take a safe driving or defensive driving course. Some insurers are willing to extend discounts to those who have completed them. Some insurers even offer approved driver training programs for under 25s. You could receive up to a 10% discount.
  7. Pay for what you use. If you don't plan to drive a lot, look for a pay as you drive insurance policy.
  8. Shop around. Always shop around and compare car insurance, doing so can save you substantially (between the most and least expensive policies). Some insurers may offer an online discount too!

Under 25 car insurance: What kind of cover can I get?

Everyone in Australia, no matter what age, is required to have compulsory third party insurance (CTP) to cover injury and death to other drivers. That helps, but it leaves you wide open to tons of other expenses, like damaging someone's property or if your car gets damaged.

For extra protection, you should seriously consider adding one of these 3 levels of cover on top of your CTP.

TypeInjuries or death to other peopleDamage to other people's property (like their car)Damage to your car as the result of theft or fireDamage to your car as the result of an accident
CTP
  • Yes
  • No
  • No
  • No
Third party property
  • No
  • Yes
  • No
  • No
Third party property, fire and theft
  • No
  • Yes
  • Yes
  • No
Comprehensive
  • No
  • Yes
  • Yes
  • Yes

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 one.Comprehensive insurance is 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 distances.The 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 like 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 product disclosure statement (the terms and conditions) for an insurance policy so you know exactly what's included in each policy.
Your car isn't super expensive, but you live in a high-risk area.Third party fire and theft is the best policy for someone that 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 banger.Third party property damage is 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 parents.If 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".

Pay attention to what's covered by your policy by reading the PDS

Looking through a product disclosure statement (PDS) isn't going to be fun, but it's the only way to know exactly what an insurance policy covers you for. By reading it, you'll also learn the costs you have to pay after a smash. Here are some of the main things to check:

  • Coverage. This explains what's covered by your policy. For example, third party damage provides you with financial compensation if you have to pay for repairs to someone else's property, while a comprehensive policy will do this – in addition to providing you with cover for your car.
  • Limits. The limit is the maximum payout amount for your policy. For example, you might get car insurance that covers you for up to $5,000 worth of accidental damage. This means the insurance company will fork over for up to $5,000 in repairs. You'll also want to check what liability cover is packaged in. Some policies will go above $20 million.
  • Exclusions. These are conditions attached to the policy that can render it null and void under certain circumstances, meaning the insurer doesn't have to pay out. Some exclusions are obvious, such as the insurer won't pay out if at the time of an accident you were under the influence of drugs or alcohol. Others are more sneaky, such as no cover for drivers that are not listed on the certificate of insurance.
  • Excess. An excess is a fee you have to pay when making a claim. There are 3 types of excesses. Basic excess is an amount you say that you will pay to the insurer in the event of you lodging a claim. If you choose a higher excess, you'll pay less for your monthly premium and vice versa. An age excess is a fee you pay for young drivers like yourself. A special excess is an amount specific to you based on your claims history, driving record and the type of car you drive.
  • Premium. The premium is the regular, ongoing amount you pay for cover. Typically, you'll pay this either monthly or annually – it's the main cost of an insurance policy (unless you have a smash).
  • Fees. These are additional costs you must pay on top of your premium. Your policy may require you to pay admin fees, cancellation charges, support costs and, of course, excesses (see above).
  • Discounts. There are many discounts available for car insurance policies. Some of the most common include pay-as-you-drive policies, multi-policy discounts, buying online and no claims bonuses (driver ratings).

Compare car insurance by state

Use the map below to compare car insurance based on your location.

Not sure what car to buy?

If you are looking for a new vehicle, but you're not sure what to get (or you've narrowed your choice down to a few models), check out Finder's car reviews. We compare cars against each other in an easy to understand table, while also publishing comprehensive car reviews.

Do I really need comprehensive cover?

It depends on your circumstances. If your parents bought you a brand new car for your 21st, then comprehensive is absolutely the way to go as it's the only level of insurance that ensures your car is covered for almost any type of damage. This includes crashes you cause, storm damage, being hit by an uninsured driver and car park bumps.

If you drive an inexpensive (relatively speaking) hand-me-down that you can easily replace, it may be safe to skip the comprehensive and go with third party property damage cover instead.

What's the price difference between comprehensive and third party insurance?

Under 25s car insurance average monthly costThird party propertyComprehensive
Male, 18 years old$53.82$161.66
Female, 18 years old$47.09$132.20
Male, 21 years old$52.33$128.61
Female, 21 years old$45.73$105.18

These figures are based on the table data found higher on this page.

Want to save on your car insurance?

ahm Car Insurance Deals
Deal

Get $50 gift card when you purchase a new car insurance policy.

Expires 30 Jan 2022
Sign up for ahm car insurance and you’ll enjoy a $50 Visa e-gift card*. T&Cs apply.
Budget Direct
Deal

15% online discount on car insurance

Receive 15% off your first year's premium when you purchase a new policy online. T&Cs apply.
Qantas Car Insurance Deals
Deal

Earn up to 20,000 Qantas Points

Earn up to 20,000 Qantas Points on signing up or switching to comprehensive car insurance with a minimum spend of $1,550. Eligibility criteria, terms and conditions apply.
Coles Car Insurance Deals
Deal

Save 10% + Collect double flybuys points

Get 10% off when you buy online plus collect double flybuys points at Coles supermarkets when you take out a Coles car insurance policy (excluding third party). T&Cs apply.
Australia Post Car Insurance Deals
Deal

Get $75 discount when you buy online

Save $75 on your first year’s premium when you buy comprehensive car insurance online. T&Cs apply.
QBE Car Insurance Deals
Deal

Save $75 on new Comprehensive Car Insurance

Buy online and save up to $75. Terms & Conditions apply.

Car insurance for under 25s: Other questions you may have


*The products compared on this page are chosen from a range of offers available to us and are not representative of all the products available in the market. There is no perfect order or perfect ranking system for the products we list on our Site, so we provide you with the functionality to self-select, re-order and compare products. The initial display order is influenced by a range of factors including conversion rates, product costs and commercial arrangements, so please don't interpret the listing order as an endorsement or recommendation from us. We're happy to provide you with the tools you need to make better decisions, but we'd like you to make your own decisions and compare and assess products based on your own preferences, circumstances and needs.


Picture: GettyImages

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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 Customer Care
        RenchJuly 9, 2017Staff

        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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