Why Young Drivers Pay More
At age 20, the average comprehensive premium is $2,387/year, compared to $1,293 at age 30 and $899 at age 60. Insurers price this way because claims data consistently shows younger, less experienced drivers have a higher accident rate — it's a statistical reality of the risk pool, not something specific to any individual driver.
Ways to Reduce the Cost
- Get added to a parent's policy as a named driver rather than taking out your own standalone policy, where the household has an established no-claims history
- Choose an insurer that waives age-based excess — some providers, like ROLLiN', specifically don't charge extra excess for drivers under 25
- Pick a lower-risk car — smaller, cheaper-to-repair vehicles with good safety ratings typically cost meaningfully less to insure than a high-performance or luxury model
- Build a no-claims history — most insurers reward a clean claims record with a discount that compounds year over year
- Increase your voluntary excess if you can comfortably afford it, since this often has an outsized effect on premiums for higher-risk driver categories
- Compare quotes directly rather than accepting an auto-renewal — young-driver pricing varies more between insurers than for any other age group
Named Driver vs. Your Own Policy
Being added as a named (occasional) driver on a parent's or partner's policy is almost always cheaper than a standalone policy in your own name, but it comes with a trade-off: you won't build your own no-claims history as quickly, and some insurers restrict how often a named driver can use the car. Weigh the upfront saving against the longer-term goal of having your own clean record.
This page is for educational purposes and isn't personalised financial advice. Premiums, terms and eligibility vary by insurer, state and individual circumstances — always check the Product Disclosure Statement (PDS) before buying.