Car insurance for under-25s

How we calculate Car Insurance Finder Scores

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What different scores mean

9+

Excellent

These products offer the best value and outcomes considering various product features and price.

7+

Great

Competitive products within their group.

5+

Standard

But these products still offer reasonable value and have the basics sorted.

0+

Basic

Offering basic cover with limited features or higher pricing.

How much does insurance for under-25s cost?

5 of 5 results

Updated regularly

Sample quote
Promoted Bingle Comprehensive Finder Award	Sample quote $2,078.79	Get Quote More info Compare product selection Compare	loading
Promoted Coles Comprehensive Insurance Finder Award	Sample quote $1,826.97	Get Quote More info Compare product selection Compare	loading
Promoted Budget Direct Comprehensive	Sample quote $1,740.19	Get Quote More info Compare product selection Compare	loading
ING Comprehensive	Sample quote $1,757.36	Get Quote More info Compare product selection Compare	loading
Qantas Comprehensive	Sample quote $1,914.19	Get Quote More info Compare product selection Compare	loading

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How we picked these

• How we got these costs

  To get these costs, we sourced quotes from 30 different car insurers across 60 different driver profiles that included different ages, states and genders. Using this data, we have calculated the average cost per provider per age group and showcased the top 5 cheapest in each category. To know more about the driver profile used to source these quotes, see Finder's car insurance methodology.

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

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.

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.

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

Our expert says

"Younger people are often managing budgets for the first time, and car insurance might not make the cut – but I'd argue that car insurance is essential. It's much cheaper to pay for insurance than it is to fork out thousands for a new car after an accident. Shop around to compare and search for discounts to get the best possible value."

Sarah Megginson

Personal finance expert + media spokesperson

Expert insight

"Insurance for under-25s is specialist and expensive. That means it's both vital you get the best policy in the first place and you don't keep it long. As a young car owner, there could be cheaper deals available to you with each and every year of age and driving experience."

Nicole Pedersen-McKinnon

Freelance finance journalist

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:

Best car insurance for under-25s - our top pick

Top Pick: Bingle

Finding affordable car insurance as an under-25 can be tough. Insurers often consider young drivers higher risk, leading to steeper premiums and sometimes even exclusions. That's why we've focused on finding insurers that offer reliable coverage without breaking the bank.

Our top pick for the best car insurance for under-25s is Bingle. They stand out by providing accessible coverage options, including comprehensive and third-party policies, specifically tailored to young drivers. Crucially, unlike many insurers, Bingle doesn't shy away from covering this demographic.

Data from Finder consistently shows Bingle offers some of the most competitive rates for young drivers, providing significant savings compared to other insurers offering similar coverage. Bingle also won the most recent Finder car insurance award for the low cost category.

While Bingle might not have all the premium features of more expensive providers, they excel in what matters most to under-25s: affordability. If you're prioritizing value and reliable coverage, Bingle is a strong contender for the best car insurance for you.

FAQs

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

  Finder research shows the best value car insurance for under 25s is Budget Direct comprehensive car insurance. This is because it offers a thorough policy at a lower cost than competitors. For a policy that prioritises price only, then RoLLiN' is a good option for young drivers as it typically comes out cheapest. Keep in mind, the costs for this research are based off a fictional profile and your own quote will likely differ.

• Can I insure my car in my parents' name?

  Not if you drive the car more than they do. If you want to save money by piggybacking off of an experienced driver's policy, you can – but that driver needs to be the one who drives the car the most. In other words, your parents can't insure your car in their name just to save you money on your insurance. That is called car insurance fronting and is a form of fraud. If you have to claim at some point, your insurer has ways of finding out who really drives the car most. Just don't do it.

• Can young drivers get insurance for a modified car?

  Yes but it depends on the modification. Firstly, before buying a modified car, you should check to see if there is an insurer that will cover you. Make sure the modifications aren't considered dangerous or illegal – if they are, your insurance won't cover you.

  For small modifications, such as a roof rack, you will most likely need to list them as a non-standard accessory when you take out a policy. Insurers will usually ask you about this during the quote process.

• Do young drivers pay more for car insurance?

  Yes. Younger drivers have less driving experience and are statistically more likely to be involved in car accidents. Therefore, insurers see them as higher risk drivers and tend to charge higher premiums.

• Is there specialised car insurance for younger drivers?

  There aren't any providers who exclusively offer cover for younger drivers, however there are car insurance providers who may be better for young drivers than others.

  This can be influenced by; what premiums they charge for younger drivers, if they have a young driver excess and how expensive it is, how they may up the premium for a policy with a younger driver listed as an additional driver.

  Our research found that RoLLiN' is particularly good for young drivers as the premiums are competitive and it doesn't charge an age based excess, while many other insurers charge up to $600 for claims made by a younger driver.

• Can I get a discount on my car insurance?

  Yes, car insurance deals and discounts are often available, particularly on comprehensive plans. This can be great for young drivers looking to reduce their premium.

To make sure you get accurate and helpful information, this guide has been edited by Jason Loewenthal as part of our fact-checking process.

Written by

Gary Ross Hunter

Journalist

Gary Ross Hunter has over 6 years of expertise writing about insurance, including life, health, home, and car insurance. Having reviewed hundreds of product disclosure statements and published over 800 articles, he loves simplifying complex insurance topics for everyday readers. Gary has contributed to major outlets like Yahoo Finance, The Sydney Morning Herald, and news.com.au, and holds a Bachelor of Arts (Honours) in English Literature from the University of Glasgow, along with a Tier 2 General Advice certification, ensuring his work adheres to ASIC’s RG146 standards. See full bio

Gary Ross's expertise

Gary Ross has written 589 Finder guides across topics including:

• Health, home, life, car, pet and travel insurance
• Managing the cost of living