Young drivers car insurance

Under 25? Then you’re probably already aware of the cost of living - and the cost of being a young driver. That is of course when it comes to your car insurance. There are ways around it of course.

We’ve heard of young drivers recruiting parents to take ownership of their car insurance while nominating themselves as a young driver on the policy. Sure it may save you some dough in the long run, but do you want to jeopardise a family member’s no claim bonus if you’re the cause of an accident? Not to mention the fact that you’d be missing out on building up discount loyalty and no claim bonus of your own. It pays to be independent, doesn't it? Let’s explore other factors of car insurance you need to be aware of.

How can I get added to the family policy?

First things first. The family member that owns the car insurance policy will have to do the calling, not you. So set aside some time where you can discuss adding your name to the policy before they make the call. You both need to ask: make sure it will benefit both of you? Do they understand the impact it may have on their policy if you cause an accident?

Every insurer is different, and so they’ll need to advise them of your age, gender and license type, car type, any mods and where it’s parked before getting an idea of how much the premium will be, not forgetting the excess cost too.

Let’s hope you chip in with your share of the cost of having your car insured! Otherwise, the premium could become relatively unaffordable, just by adding an extra car to the policy.  

Stand alone policy options for young drivers

You may be a young driver with a potentially costly car insurance policy under your belt, but if you’ve been driving everyday since you were 17 and you’re now 23 years old, then that’s six years driving experience. If you’ve had a pretty good track record, then you could be entitled to a cheaper car insurance. No harm in asking.

The price you pay will be determined by the underwriter’s assessment of your personal situation. So if you can prove that you’re not a typical high-risk young driver then you could save big bucks on your car insurance.

As mentioned before, if you set up your own loyalty discount and no claim bonus discounts, it won’t affect your pocket just now, but for years to come.

Car insurance exclusions

There are more restrictions as a young driver than you probably imagined, from passenger restrictions, types of car models you’re allowed to drive, to time of day your insurance will cover you for. If you want to get your head round what the restrictions are like, you can start by reading up on the licence rules handed out by the RTA as a good starting point.

Young driver and car insurance exclusions

Road rules and car insurance policies go pretty much hand in hand. They’re similar in the way they expect society to follow the rules, and under 25s are no exception. Fail to do so and not only do you risk forfeiting your policy, but in some cases you can risk losing your license altogether for a period of time. If you’re at fault in a car accident, here are some factors that could affect either your driver’s license or your car insurance policy:  

Learner Driver P1 P2
-You have been found with any amount of alcohol or illicit drugs in your system.

-You are driving unsupervised or supervised by an unsuitable person i.e. learner, provisional license holder or someone with a disqualified license.

-Exceeding permitted speed limit

-Using a tow-bar

-Use your mobile in any way, including hands-free

-You mislead your insurer with the type of car you drive.
So to qualify for adequate car insurance you are not allowed to drive a powerful car or one with modifications.
-You have been found with any amount of alcohol or illicit drugs in your system.

-Exceeding permitted speed limit

-You mislead your insurer with the type of car you drive.
So to qualify for adequate car insurance you are not allowed to drive a high-performance car

-Use your mobile in any way, including hands-free

-Exceed the permitted weight when using a tow-bar

-Carry passengers under the age of 21 during restricted times.
-You have been found with any amount of alcohol or illicit drugs in your system.

-Exceeding permitted speed limit

-Supervise a Learner driver

-Drive a high-performance car.


Whether you’re a young driver or over 25, being caught with alcohol in your system will nearly always restrict your car insurance policy from covering you if you’re at fault in an accident. Sure enough there are alcohol allowances for full licence holders, but no matter what age you are, if you maintain a zero policy when it comes to getting behind the wheel, you’ll be setting up a pretty outstanding standard for the rest of your driving life. Safer driving for everyone!

Is this your first car insurance policy?

Finally becoming independent is certainly an exciting time. That includes having your own car and insurance policy. But as you already know, your premium is likely to be incredibly expensive compared to a driver with a good driving record and a full license. Road toll stats on young drivers and recorded accidents play a large role in the heavy price you pay. Some of the key features you need to be aware of include:

Basic car, basic premium

The simpler your car, the less you pay. In most instances, you will not be allowed to drive a high-powered car till you have your full license. If caught driving one, you may lose your license, get penalised and if at fault in an accident, your insurer may void your policy altogether. Basic all the way.

Keep it clean

Your ability to drive safely is assessed by a team of professionals who value safe driving. So if you have a clean driving record while driving on your Ps, which you may be rewarded with a discount on your policy. Complete a ‘safe driving course’? Expect further discounts on your conscientious driving skills. Think of yourself as an asset on the road. Imagine if everyone was a safe driver!

Compare quotes

Sure it’s super exciting - you have your P plates now and you’re one step closer to getting yourself on the road, on your own. Your car insurance is probably the last step before getting out there, but it’s nothing to rush. Take the time to compare quotes. Some people save more than $1000 per year, just by comparing! The car make and model will have a huge impact on your premium which is why Mozo vouches for simpler cars to begin your driving experience. Why not try Mozo’s car insurance comparison tool to help get you on the road faster?

How to choose a car insurance policy: price versus features

Still a little overwhelmed? Don’t worry, you’re not alone. There are so many companies out there that claim to be offering the same sort of thing. But are they? It’s one thing to simply compare prices, and it’s another to compare value for money. It may even be worth paying a little extra to get the features you really need for your car insurance.

Some car insurance companies will offer all or some of these features. So if you’ve narrowed down your search and are hung up on a couple of these features, make sure you ask if it’s already in an existing policy. Remember to ask if there are other features they have that can be tailored to your needs.

Below is a rough breakdown of features you may want to consider:

Emergency assistance

Many car insurance policies come with emergency assist. Others you’ll have to pay extra for.

Optional car hire

Mostly an addition to your policy, but some will cover you one or two days. Check with your insurer what they will do for you.

Optional rating protection

Not a common feature, but one that’s worth asking about: if you’re in an accident, you may pay an annual fee to keep your premium or no claim bonus intact.  Check the small print on this one.

Market value vs agreed value

If your car is only worth $9000 and you insure it for $20,000, then that’s an agreed value. Some insurers will cap the agreed value. Bear in mind that event the agreed value may depreciate on your policy from the day you insure it for. The catch is, your premium may remain the same. A little unfair, no?

Easy payment

The good news is, some insurers will offer a discount if you pay your policy for the year in one lump sum. If it’s out of budget, then we recommend paying in installments. You may miss out on a discount, but your payments will be easier on the pocket in their long run. Want to save even more? Purchase your car insurance online. Even organising payments by monthly or quarterly instalments online can save you a few dollars. Give it a go.

Insurance Tip: Do you know the difference between third party property and comprehensive car insurance? It’s a good idea to read Mozo’s comparison of the two options to help you get your head around car insurance before making a purchase. Not as simple as it seems! But the more you read up and compare policies the more you’ll comprehend the essentials.