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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 6 driver profiles: 3 males (aged 18, 21 and 24 at the time of the quote) and 3 females (aged 18, 21 and 24 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.
- 18-year-old female
- 21-year-old female
- 24-year-old female
- 18-year-old male
- 21-year-old male
- 24-year-old male
How did we get these costs?
- Female and male driver
- Silver 2019 Toyota Corolla 4D Sedan Acsent Auto
- Safe driver with no claims made
- Drives 10,000-15,000 km per year
- Adjusted excess to $850 where possible
- Driver located in Sydney
- Policy starting September 2022
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.
We used our Finder car insurance awards data to determine our top picks. We filtered our data to look solely at quotes for 20-year olds. In total, we got 314 quotes from 20+ comprehensive car insurance policies. At $1,009 a year, Bingle had the cheapest policy on average.
To determine the top pick for value, 16 features were weighted and assessed for each product with the final score being a 40/60 split of the features and price score. Virgin came out on top.
We only looked at comprehensive car insurance policies and didn’t look at every provider on the market. Keep in mind that what's best for you might not be for someone else and your prices can differ based on where you live, your gender and the car you drive. Be sure to check the fine print to make sure it's the right policy for you.
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.
- The cheapest insurance brand for our 18-year-old female profile is Bingle if she's getting a comprehensive policy ($124.23) and CGU if she's looking for third party property cover ($47.66).
- For a 21-year-old female, the least costly is CGU for third party cover ($37.80) and Bingle for comprehensive ($98.86).
- For a 24-year-old female, the least costly is CGU for third party cover ($30.25) and Bingle for comprehensive ($84.76).
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.
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 ($151.84) and CGU for a third party property policy ($47.66).
- For our 21-year-old male, the cheapest policy is Bingle for comprehensive cover ($120.83) and CGU for third party cover ($37.80).
- For our 24-year-old male, the cheapest policy is Bingle for comprehensive cover ($103.62) and CGU for third party cover ($30.25).
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:
- The policy's standard excess
- Another excess because of the driver's young age
- 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:
Auto & General | $600 | $500 | $500 | $600 |
Insurance Australia Group | $800 | $450 | $400 | No excess |
Suncorp | $400 | $400 | $400 | $1,400 |
Hollard | $1,200 | $800 | $800 | $1,600- $2,000 |
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:
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.
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.
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.
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.
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.
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.
Pay for what you use
If you don't plan to drive a lot, look for a pay as you drive insurance policy.
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!
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.
| CTP |
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| Third party property |
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| Third party property, fire and theft |
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| Comprehensive |
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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:
| 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).
Use the map below to compare car insurance based on your location.
- WA
- NT
- SA
- TAS
- QLD
- NSW
- VIC
- ACT
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.
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?
| Male, 18 years old | $47.66 | $151.84 |
| Female, 18 years old | $47.66 | $124.23 |
| Male, 21 years old | $37.80 | $120.83 |
| Female, 21 years old | $37.80 | $98.86 |
| Male, 24 years old | $30.25 | $103.62 |
| Female, 24 years old | $30.25 | $84.76 |
These figures are based on the table data found higher on this page.
*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.