Does car insurance cost less for first time drivers over 25?

Numerous studies show that more young people are putting off learning to drive. For instance, in a 2019 report, Charting Transport revealed that licence ownership for 20 to 24-year-olds had declined considerably in Victoria and New South Wales.
Research from Monash University also released last year confirms this, showing that millennials are learning to drive at later ages and relying more on public transport.
Lead researcher at the university, Dr Alexa Delbosc says, “At this rate, only half of 18 to 23-year-olds in Melbourne will get a licence by 2025.”
Why are millennials taking longer to get behind the wheel?
In a 2015 report, the Royal Automobile Club of Victoria identified a number of reasons why young people might not be learning to drive. These included:
- being too busy to take lessons
- not being able to afford and maintain a vehicle
- the ability to rideshare with others
- preferring to walk or cycle
- preferring to use public transport
- concerns for the environment
Twenty-eight-year-old costume maker Catriona is a prime example of this. Catriona has only just started to learn to drive this year and she names not having enough time, the cost of driving lessons and being able to use public transport as her main reasons for putting it off until now.
Getting insurance as a first time driver over 25
With countless studies done on the subject, we take it for granted these days that younger drivers will pay more in insurance.
Allianz Australia’s general manager for automotive and mobility Keith Forster says, “Young drivers are a high risk due to both their inexperience and their risk taking behaviour. Insurers will take both of these into account when setting premiums.”
But what about first time drivers who are a little older?
Forster says that first-time drivers, regardless of age, are considered a higher risk by insurers. This is simply due to a lack of experience that may make them more likely to have an accident.
That said, despite the initial lack of experience, there is a likelihood that older drivers might be able to benefit from lower premiums faster.
“Older first time drivers, whilst inexperienced, are less likely to exhibit risk taking behaviour and therefore will not claim at the same rate as younger inexperienced drivers,” says Forster. “So an older, inexperienced driver might be expected to be rewarded for a good driving history more quickly in their first few years of driving.”
Of course, age and experience aren’t the only factors that will affect your car insurance premium.
Tips to help keep your premium down
As Forster says, purchasing certain cars such as high performance vehicles can also up the cost of your insurance premium.
“A new driver may be able to reduce their premium by purchasing a less expensive car, selecting a higher excess, or choosing a basic level of cover without including optional covers such as Rental Car,” says Forster.

- Driving safely. Lowering your premium costs isn’t the main reason to drive safely. However, it is an added perk to being a responsible driver. Most insurers have a no claims bonus or discount that is specifically designed to reward safe driving.
- Nominating drivers. Restricting the number of drivers is another way to save on your premium. The fewer, the better.
- Only nominating drivers over 25. As mentioned, drivers under 25 are generally seen as a higher risk. So, only nominating drivers over 25 could also help keep your premium down.
- Considering pay-as-you-drive car insurance. If you don’t intend to drive your car all the time, then you could consider pay-as-you-drive car insurance to reduce the overall costs.
- Shop around. Finally, compare car insurance policies from different insurers to make sure you’re getting the most bang for your buck.
Check out the comprehensive car insurance policies on offer below.
Compare car insurance - rates updated daily
Gold Comprehensive Car Insurance
- Monthly premiums
- Yes Costs Extra
- Choice of repairer
- Optional Extra
- Choice of excess
- $500 - $1,850
- Agreed or market value
- Agreed Or Market
Available discounts
- Online Discount Up To 15%
Gold Comprehensive Car Insurance
Get award winning Car Insurance. Save 15% ^ on your first year’s premium when you purchase a new policy online. Budget Direct offers tailor-made cover, new-for-old replacement, 24/7 claims, a highly-rated claims service, and get a hire car following a theft.
- New car if written off
- Yes - within 2 years or 40,000 kilometres of original registration, whichever comes first
- Rental car after theft
- Yes - Up to 14 days, max $1,000 total.
- Rental car after accident
- Not at fault - Yes. At fault - Optional Extra. Up to 14 days for at fault accidents.
- Windscreen cover
- Yes - standard excess. Option to reduce windscreen excess to $40 on every windscreen claim for an additional premium.
- Modifications
- Covered only if agreed in writing.
- Young driver excess imposed
- $600 for drivers under 21, $500 for drivers under 24, $600 for unlisted drivers, $500 for inexperienced drivers over 24.
- Roadside assistance
- Optional Extra
- Other benefits
- -
- Other restrictions
- -
Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
Read our Mozo Review to learn more about Budget Direct Gold Comprehensive Car Insurance
Comprehensive Car Insurance
- Monthly premiums
- Yes Costs Extra
- Choice of repairer
- No
- Choice of excess
- $800 - $2,000
- Agreed or market value
- Agreed
Available discounts
- No Claim Discount
Comprehensive Car Insurance
Stella have created a more intuitive experience and offer a product that’s been designed with women in mind; offering premium benefits, and optional extras and rewards for being a safe driver. Stella are back by QBE. Get a quick quote online in 40 seconds and insured in 4 minutes. Purchase a new comprehensive car insurance policy from Stella by 30th June 2022 and receive a $100 EGift Card*. T&Cs apply.
- New car if written off
- Yes - within 3 years and 60,000 km of original registration
- Rental car after theft
- Yes - Up to 14 days.
- Rental car after accident
- Not at fault - yes. At fault - Optional Extra. Up to 14 days.
- Windscreen cover
- Yes - standard excess. Option to reduce windscreen excess to $0 on every windscreen claim for an additional premium.
- Modifications
- Covered only if agreed in writing.
- Young driver excess imposed
- $600 for listed drivers under 25. $1,600 for unlisted drivers under 25
- Roadside assistance
- Optional Extra
- Other benefits
- Receive a $100 eGift card for new Comprehensive Car Insurance policies purchased from Stella by 30th June 2022.
- Other restrictions
- -
Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
Read our Mozo Review to learn more about Stella Comprehensive Car Insurance
Comprehensive Car Insurance
- Monthly premiums
- Yes
- Choice of repairer
- No
- Choice of excess
- $500 - $5,000
- Agreed or market value
- Agreed Or Market
Available discounts
- Pay As You Drive Cover With Pricing Tiers Available For Limited Kms.
Comprehensive Car Insurance
Huddle Car Insurance, Pay as you drive & save up to 30% (T&Cs apply). 24/7 claims lodgement and new-for-old replacement (under 2 years).
- New car if written off
- Yes - within 2 years of original registration
- Rental car after theft
- Yes - Up to 14 days, max $70 per day.
- Rental car after accident
- Not at fault - Optional Extra. At fault - Optional Extra. Up to 10 days, max $70 per day.
- Windscreen cover
- Yes - standard excess. Option to reduce excess for first windscreen claim each year to $0 for an additional premium.
- Modifications
- Most modifications covered automatically
- Young driver excess imposed
- $1,200 for listed drivers under 21, $800 for listed drivers under 24, $2,000 for unlisted drivers under 21, $1,600 for unlisted drivers under 24, $800 for inexperienced drivers over 24, $800 for learner drivers.
- Roadside assistance
- Optional Service
- Other benefits
- -
- Other restrictions
- -
Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
Read our Mozo Review to learn more about Huddle Comprehensive Car Insurance
Comprehensive Car Insurance
- Monthly premiums
- Yes
- Choice of repairer
- No
- Choice of excess
- $500 - $5,000
- Agreed or market value
Available discounts
- Pay As You Drive Cover With Pricing Tiers Available For Limited Kms.
Comprehensive Car Insurance
Enjoy flexible car insurance with ahm. Whether you’re driving thousands of kms, or just a few, ahm has cover that could suit your needs. Set up a policy in just minutes. Enjoy adjustable excess options to suit different budgets. Get 24/7 emergency help when you need it. Sign up by 30 June 2022 and receive free roadside assistance* for 12 months. T&Cs apply.
- New car if written off
- Yes - within 2 years of original registration
- Rental car after theft
- Yes - Up to 14 days, max $70 per day.
- Rental car after accident
- Optional Extra
- Windscreen cover
- Yes - standard excess. Optional extra for excess-free windscreen cover.
- Modifications
- -
- Young driver excess imposed
- $1,200 for listed drivers under 21, $800 for listed drivers under 24, $2,000 for unlisted drivers under 21, $1,600 for unlisted drivers under 24, $800 for inexperienced drivers over 24, $800 for learner drivers.
- Roadside assistance
- Optional Service
- Other benefits
- Get free roadside assistance for 12 months when you sign up by 30 June. T&Cs apply.
- Other restrictions
- -
Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
Read our Mozo Review to learn more about ahm Comprehensive Car Insurance
Comprehensive Car Insurance
- Monthly premiums
- Yes
- Choice of repairer
- No
- Choice of excess
- $800 Flat Excess Fee
- Agreed or market value
- Agreed
Available discounts
Comprehensive Car Insurance
Easier, better, smarter car insurance. Say g’day to ROLLiN'. They've taken the complicated out of car insurance and created a new route that's simple, u-turn free and keeps you in the driver’s seat. No cancellation fees, 24/7 online claims service and a policy that’s pay monthly. Buy now and boost your single car value under your policy by 15%. Excesses Apply.
- New car if written off
- Yes - within 15,000km of original registration
- Rental car after theft
- Yes - Up to 21 days, max $80 per day
- Rental car after accident
- Yes - Up to 21 days, max $80 per day
- Windscreen cover
- Yes - $0 windscreen excess
- Modifications
- Covered only if agreed in writing.
- Young driver excess imposed
- No additional excess for young drivers. $3,000 for unlisted drivers
- Roadside assistance
- No
- Other benefits
- Optional benefit to boost the Single Car Value by 15%, it will be shown on your Insurance Certificate
- Other restrictions
- -
Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
Read our Mozo Review to learn more about ROLLiN' Comprehensive Car Insurance
* Terms, conditions, exclusions, limits and sub-limits may apply to any of the insurance products shown on the Mozo website. These terms, conditions, exclusions, limits and sub-limits could affect the level of benefits and cover available under any of the insurance products shown on the Mozo website. Please refer to the relevant Product Disclosure Statement and the Target Market Determination on the provider's website for further information before making any decisions about an insurance product.
^See information about the Mozo Experts Choice Car Insurance Awards