As a learner driver, there’s nothing quite like the feeling of removing those bright yellow L plates from the car and replacing them with a crisp set of Ps once you’ve passed your driving test.
Swapping lessons for the open road can bring a thrilling sense of independence; while for watching parents, it’s often a proud yet nerve-racking milestone.
But whether you’re a new P-plater or the parent of a teen driving your car, you’ll probably want to make sure you’re all sorted on the car insurance front before that first solo drive, right? And that often entails finding answers to a bunch of first-time questions.
For starters, how does car insurance for P-platers work? Are they automatically covered by a car’s existing policy or do young drivers need their own P-plate insurance? And either way, how are premiums for P-platers calculated and what type of car insurance is available for newly minted drivers? What if you need to make a claim? Is there an additional P-plater excess?
We’ve put this guide together to answer these questions – and more – starting with some general questions any family with a new young driver might have.
Does car insurance cover P-platers?
Yes. Even though provisional licence holders may have extra road rules to follow, including speed limit and passenger restrictions depending on where you live, young drivers are eligible for car insurance cover.1,2
“This remains the case regardless of whether a P-plater needs their own car insurance policy because they have their own car, or they want to be listed on someone else’s policy – for example, if they drive their parents’ car occasionally, instead of having their own vehicle,” explains Marni Jackson, Youi’s Head of Product – Vehicle and Lifestyle.
What type of car insurance is available for P-platers?
Every car, regardless of the driver’s licence type, must have Compulsory Third Party (CTP) insurance, which covers injuries to people caused by car accidents and is a mandatory requirement before you can register the vehicle.3 Aside from this essential cover, there are three levels of additional car insurance that young drivers can get.
- Comprehensive: This covers damage to your car and other people’s cars or property, even if you caused the accident, as well as cover for other events, including if your car’s stolen or damaged by fire.3 At Youi, Comprehensive car insurance also covers some severe weather events, such as hail and floods,4 and Roadside Assist is included as standard.5
- Third Party Fire & Theft: This covers your car if it’s stolen or damaged by fire, as well as damage to other people’s cars or property caused by an accident that’s your fault.3
- Third Party Property Only: This covers damage to other people’s cars or property caused by an accident that’s your fault.3
What’s the best car insurance for P-platers?
There are a number of things to consider before you decide which type of car insurance might be best for you, including how old your car is,6 and whether or not you owe money on it.7
For example, while Comprehensive insurance offers a lot more cover than Third Party policies, it’s also the most expensive type of car insurance.8 So if you’re a P-plater driving an older car with plenty of kilometres on the odometer, you may decide that a Third Party Fire & Theft or a Third Party Property Only policy suits you better.1,8
On the other hand, while the cheapest car insurance for P-platers is likely to be a Third Party policy,1,8 you might decide a Comprehensive policy is worth it if you still have finance owing on your car.3,7 Otherwise, if you have an accident and your car gets written off, you could be left with the debt but no car to show for it.7
“At the end of the day, the level of cover that suits you best will always depend on your individual needs and circumstances,” says Jackson.
Why does car insurance for young drivers often cost more?
Car insurance for under 25s and P-platers usually costs more because, compared to other types of drivers, young drivers have less experience behind the wheel, which means they’re seen as a bigger risk to insurers.2
And research backs that up, showing that the riskiest time for being involved in a potentially fatal crash is in the first 3-6 months of graduating to a provisional licence.9
How are P-plate insurance premiums calculated?
Insurers take a few different things into account, in addition to age, when they’re calculating premiums for young drivers.
As well as the level of car insurance cover, these may include:2
- The make and model of your car
- Where you live
- Your claims history, if you have one.2
Gender may also play a role for some insurers.2 For example, on average, and as of February 2026, under 25 car insurance premiums cost $3,075 for males compared to $2,521 for females in the same age range.1
Parents’ FAQs about car insurance for P-platers
From deciding whether to add a P-plater to your car insurance policy to understanding how a young driver might impact your excess if you need to make a claim, here are the answers to a few common questions you might have as a parent.
What excess might apply if my P-plater has an accident while driving my car?
It can depend on your insurer and your specific policy,1 but at Youi, there are a few different excesses that may apply to claims involving P-platers:
- Basic excess: This is what you pay in relation to each and every claim made under your policy, no matter who was driving the car.10 At Youi, when you purchase a policy, you’re typically given the option to choose your basic excess amount from a range of options.10
- Driver specific excess for listed drivers: If the claim relates to an incident where a driver under the age of 25 who’s listed on your policy was behind the wheel, an additional excess would apply, on top of your basic excess.11
- Driver specific excess for unlisted drivers: If the claim relates to an incident where a driver under the age of 25 who isn’t listed on your policy was behind the wheel, an additional much higher excess would apply, on top of your basic excess.11
Will my premium go up if I add a P-plater to my car insurance?
Probably. Young drivers are considered a higher risk to insure, so adding a driver who’s under the age of 25 to your policy is likely to increase your premium.1
“However, as outlined above, if you need to make a car insurance claim for an incident when your P-plater was behind the wheel, the additional driver specific excess for an unlisted driver under the age of 25 could be significantly higher than for listed drivers in the same age bracket,” says Jackson.
How can I add a P-plate child as a listed driver to my existing car insurance policy?
“At Youi, policy-holders can add drivers, including P-platers and other young drivers, to their car insurance policy simply by logging into their account online or giving us a quick call on 13 9684,” explains Jackson.
“And you can use the exact same process if and when you want to remove a P-plater from your policy – for example, if they’ve bought their own car and are no longer driving yours.”
Young drivers’ FAQs about car insurance for P-platers
If you’re confused about whether you need your own policy, want to know more about what car insurance for young drivers costs or have questions about whether CTP insurance provides enough cover, you might find the answers you’re looking for here.
Am I covered by my parents’ car insurance?
This can depend on the type of insurance you’re talking about.
Whenever you’re behind the wheel of their car, you’re automatically covered by the car’s CTP insurance, because that type of insurance is attached to the vehicle rather than an individual driver.12-15
As for additional car insurance cover – including Comprehensive insurance or a Third Party policy – if you’re driving a parent’s car occasionally, it’s best to check with their insurer to see if you’re automatically covered or whether you need to be listed on the policy.1
Should I buy my own policy or get listed on my parent’s policy?
It depends. If you have your own car and you’re the person who drives it most often, it’s important that the insurance policy that covers the car lists you as the primary driver – this applies regardless of whether you actually own the car or not.2,8
Likewise, if you’re now the main driver of a parent’s car, the car insurance policy should list you as the primary driver.1
In both cases, failing to do this could affect your insurance coverage in the event that you need to make a claim, potentially leaving you to cover any costs yourself.2
“However, if you only drive a parent’s car occasionally and they’re still the car’s primary driver, getting listed on their policy could be the better option for you,” says Jackson.
Is CTP insurance enough for a P-plater?
CTP insurance is the only type of car insurance that’s mandatory in Australia,3 so whether or not you decide to take out an additional car insurance policy is an individual choice.8
To help you decide, it may be worth remembering that CTP insurance doesn’t cover any damage to your car, or anyone else’s.3 This means that if you only have CTP insurance and your car gets stolen or written off after an accident and you wanted to replace it, you’d need to find the funds yourself.8
Similarly, if you damage someone else’s car in an accident that’s your fault and all you have is CTP insurance, you might be left to cover the repair bill for their car yourself.8
How much is car insurance for a P-plater?
The cost of car insurance depends on a wide range of factors, including the level of cover you choose.
However, as of February 2026, on average for drivers under 21, car insurance costs $3,609 per year in Australia, while those aged 21 to 24 pay $2,556. This average drops to $2,099 for 25-year-old drivers.1
To get a more accurate idea about car insurance costs, you might like to consider starting a quote online or by giving us a call on 13 9684.
How can I reduce the cost of P-plate insurance?
In addition to choosing the level of car insurance cover that best suits your needs, there are some steps you can take that may help to reduce car insurance costs for young drivers.2
“For example increasing your policy’s basic excess and maintaining a safe driving record might all help contribute to a lower premium,” says Jackson.
Other strategies that may help include:
- Not buying a high-performance car. These vehicles are typically more expensive to insure.1
- Resisting the temptation to make modifications to your car. Additions such as alloy wheels, a spoiler or a custom paint job could also be more expensive to insure.16
- Paying your insurance annually. While monthly premiums may be more manageable, paying your premium annually might reduce the cost of your car insurance.2
Figuring out the ins and outs of car insurance for P-platers, including deciding whether or not they need their own policy, may seem confusing. Hopefully, now that you know a bit more about how car insurance for young drivers works, you feel better equipped to decide what suits you and your car best – whether you’re driving on a provisional licence or you’re a parent of a P-plater who’s ready to get behind the wheel.
And, if you’re keen to find car insurance that’s a bit more you-shaped after reading this guide, including under 25 or under 21 car insurance, why not consider starting a quote online or by giving us a call on 13 9684.
1 Source: CHOICE – Best car insurance for drivers under 25, February 2026
2 Source: Canstar – Car insurance for P-platers, April 2025
3 Source: Moneysmart – Choosing car insurance, n.d.
4 Exclusions and limits may apply. Where you have increased your cover or reduced your excess within 72 hours of a flood, storm, hail or bushfire occurring, cover will be limited to the amount that was effective prior to the change. Loss, damage or legal liability caused by, resulting or arising from flood, storm, hail or bushfire during the first 72 hours of your policy first being purchased is excluded unless certain conditions apply. For full details, see the PDS, TMD and your policy schedule.
5 Youi Roadside Assist available with Comprehensive policies only. Exclusions, limits, waiting periods and additional fees may apply. Cover not available within 24 hours of taking out or upgrading to Comprehensive cover. Product issued by Youi Pty Ltd. Consider our PDS when deciding if the product is right for you. PDS, T&Cs & TMD available at youi.com.au.
6 Source: Canstar – Is comprehensive car insurance worth it?, May 2025
7 Source: Drive – Is third-party car insurance worth it? Here’s the honest truth, November 2024
8 Source: CHOICE – How to find the best car insurance policy, 2026
9 Source: Transport Accident Commission – P plate drivers, n.d.
10 Exclusions, limits and additional fees may apply. For full details, see the Car Insurance PDS.
11 Special conditions and restrictions may apply and will be stated on your policy schedule (for example, for some cars, we may restrict cover to the listed and regular drivers only, or apply a special condition of ‘no cover for drivers under 30 years of age’. The driver specific excess dollar amounts listed are current as of January 2026. For full details, see the PDS.
12 Source: Youth Law Australia – Car insurance, February 2024
13 Source: NSW Government State Insurance Regulatory Authority – Cancelled policy refunds, December 2024
14 Source: SA Government CTP Insurance Regulator – CTP Regulator 2019-20 Annual Report, 2025
15 Source: Insurance Commission of Western Australia – Insurance policy, n.d.
16 Source: Canstar – How is car insurance calculated in 2025?, January 2025
