If you’ve suddenly discovered that insurers may consider you a “high-risk driver”, you may be experiencing some anxiety and confusion. Perhaps it’s come about because of a recent licence suspension, a few too many speeding tickets, or simply because of the year you were born.
In reality, your risk profile is one of the measures insurers typically use to assess your eligibility for cover and help calculate your premium. A “high risk” status doesn’t just apply to young or inexperienced P-platers; it can also apply to senior drivers navigating changing health requirements, or everyday commuters who have accrued a recent string of traffic infringements.1
Your risk as a driver on the road changes from when you begin driving to when you start driving less – and the same can be said about car insurance risk changing too.
In recent years, road traffic crashes have been a leading cause of death in young people aged 15-29 years,2 an age bracket typically deemed as “higher risk” and which can often attract higher insurance premiums than older drivers.1,2
At the opposite end of the age spectrum – where perhaps people are beginning to slow down and drive less – road deaths for people aged 65 and older have increased over 14% in the last decade.3
High risk car insurance has a number of different elements in play, from your age to your driving record, which can all impact your risk factor. But how do you know if you’re considered “high risk”?
In this article, we’ll break down the elements of high risk car insurance to help you better understand insurance for high-risk drivers and how premiums may change. We’ll also explain how insurers actually assess your profile and what your disclosure obligations are and share some practical steps you might wish to consider to help shake the “high risk” label.
What does “high-risk driver” mean for car insurance?
There isn’t a specific policy called “high risk car insurance”; however, insurers may offer a regular policy with a higher premium if they perceive you as high risk.1
From specific pieces of information – such as your age and driving experience – an insurer determines whether you pose a higher risk on the road. Insurance companies do this because a policy transfers part of your risk to them.4 However, there are some risks insurers won’t cover, such as if you caused a car accident because you were drink driving.4
How insurers assess your risk will depend on their individual products and policies. Where one insurer considers something higher risk another may not.
What can make someone a higher-risk driver?
There isn’t one single thing that makes someone a higher-risk driver, it may be a combination of things. The factors that insurers take into consideration and may impact your risk profile might include:1
- Driving history and experience
- Age
- Gender
- Your claims history
- How often you drive your car.1
Age and risk profile for insurance
Your car insurance risk may change as you age. When you’re under 25, your car insurance risk will be assessed based on your age as well as your driving experience – which may increase your premium.1
The risks associated with younger drivers – such as P-platers – have a lot to do with inexperience.1 Many drivers under 25 would’ve received their provisional licence from around 17 onwards, giving them only a few years of experience on the road.
Older drivers who first got their licence much later in life may also have their experience considered.1 For drivers aged 70 and over, insurers may take additional factors into account when assessing their risk profile. While experienced drivers can often benefit from lower premiums, some insurers may charge higher premiums for older drivers based on factors such as health-related risks and claims trends.
As drivers age, changes in their health may affect their driving ability.5 Additional testing may help to make sure they are still fit to drive and won’t pose a higher risk on the road. In most states and territories, from around 75 years old, drivers take annual medical and driving assessments to renew their licence.5-7 This may vary from state to state, so it may be worth checking your local government site for specific details.
Driving history and your risk category
If you’ve perhaps taken a few risks on the road – and inevitably been caught doing so – your driving history may be made up of driving offences which could include:8
- Exceeding the speed limit
- Driving under the influence (DUI) of drugs or alcohol
- Careless driving or dangerous driving.
- Unlicensed driving8
Insurers take offences like these into consideration when determining your premium costs and policy terms. If you have a history of speeding fines or multiple traffic violations, you may be considered higher risk.1
Claims history and my risk category
Insurers may also look at your previous claims with them or with another insurer.1 Your car insurance claim history shows that your risk has changed9 and – depending on how many claims you’ve made – how high that risk has become.
Whether you’re deemed at fault or not at fault can also impact your risk.1 If you’re deemed at fault, it could be due to negligence caused by increased speed, or drink driving; therefore, you may have been the higher-risk driver in the scenario.10
If you have a no claim bonus, making a claim could affect it.1 A no claim bonus typically provides a discount on your car insurance premium, with the discount often increasing for each year you don’t make a claim.1,11 However, not all insurers offer a no claim bonus, and for many insurers, most policyholders are already on the highest discount rating available.11
Can a high-risk driver get cover?
Typically speaking, yes.1 Depending on the insurer, there may be restrictions in place for your insurance such as higher excesses and premiums or limited policy options.1
If you’re deemed higher risk, the cover you’re offered may include additional policy-based exclusions alongside the general exclusions listed in the car insurance Product Disclosure Statement (PDS).1 While exclusions vary between insurers and policies, common examples may include:12
- Driving under the influence of drugs or alcohol
- Driving without a valid driver’s licence
- Intentional acts by you such as a hit-and-run or vandalism
- Drag and street racing or using your car for motorsports
- Illegally leaving the scene after an accident.12
Being considered a higher-risk driver doesn't necessarily mean you won't be able to get cover, but it may affect the type of cover available to you, the cost of your premium and the conditions of your policy.
Does losing demerit points affect insurance?
Demerit points can impact your car insurance in both premium costs and your perceived risk as a driver, however this may vary from insurer to insurer.1,13 How long your demerit points are considered to impact your risk will depend on the individual insurer also.
Do demerit points affect CTP insurance?
Compulsory Third Party (CTP) insurance is a mandatory insurance across Australia.14 As with some other insurance, having demerit points on your record can impact your CTP premium.15 Other ways this may affect your CTP can vary from state to state.
Do I have to tell my insurer about my driving infringements or offences?
Yes. You have a duty of disclosure when you enter an agreement with an insurance company. Your duty of disclosure means if an insurer asks, you must tell them everything about your situation that is relevant to their decision to insure you.16
If a false statement or misrepresentation was made or someone hasn’t complied with the duty of disclosure, an insurance company may void your policy, adjust the premiums or impose conditions on your agreement.17,18
“When you’re completing a car insurance quote at Youi, we’ll ask a series of questions to determine your risk, eligibility for cover and premium,” says Marni Jackson, Youi’s Head of Product – Vehicle and Lifestyle.
“We’ll ask questions about your driving history, claims history as well as the history of any other drivers you wish to include on your policy – so it can be helpful to gather this information in advance before you start a quote with us."
“It’s important that you answer all questions accurately and completely and take reasonable care not to make a misrepresentation. If you were to make a misrepresentation, this may affect your cover and the outcome of a claim”.
Can I get car insurance after my licence has been suspended?
You may still be able to get car insurance even when your licence is suspended, but some insurers require a valid licence to provide cover.1 If you already have a policy and your licence is suspended, the terms of your cover may be affected, depending on your insurer and policy conditions.1
For example, some policies may also include a responsibility to notify your insurer if your licence is cancelled, suspended, disqualified or restricted.1
Will a DUI or drink driving offence stop me getting cover?
The short answer is no, car insurance for DUI offenders in Australia may still be an option, but because you’ll be perceived as a higher risk, you could face higher premiums and have fewer options when choosing an insurer.19
How long will I be considered high risk by insurers?
The time period you’ll be considered a higher risk for will vary from insurer to insurer. It may be helpful to discuss with an insurer their policies around risk to get an idea of the timeframes you may be looking at.
Can I add a high-risk driver to my policy?
This will also depend on individual insurers. If they’re willing to add an additional driver who is considered higher risk, you may pay a higher premium or excess.1
What kind of insurance is available for high-risk drivers?
As there is no specific product for high-risk drivers, you may be able to take out a standard insurance policy. The three main types of insurance available in Australia are comprehensive insurance, third party fire and theft or third party property only.20 There is also Compulsory Third Party (CTP) insurance – called a Green Slip in NSW21 – which is mandatory in every state and territory in Australia.
Here’s what is generally covered under each type of car insurance:
- Comprehensive car insurance – Typically the highest level of cover, it covers damage to your car and other people’s cars or property in an accident. It also covers your vehicle if it’s stolen or damaged by fire or some other severe weather events.20
- Third party fire and theft – This includes cover to your vehicle if it’s stolen or damaged by fire as well as damage to other people’s cars or property.20
- Third party property only –This does not cover any damage to your car but covers damage to other people’s cars or property in an accident.20
Compulsory Third Party – This covers your legal liability if your vehicle causes injury or death to someone in an accident.14
While standard car insurance may be available to high-risk drivers, it’s worth remembering you may not have the exact same cover and you may pay a higher premium.1 To explore options, you might like to discuss with your insurer which type of cover is available for you if you’re considered high risk.
How do I reduce my risk as a driver?
To move out of the higher risk category, you can do a few things including driving safely to reduce your perceived risk.1 Practising safe driving habits can help to keep yourself and others safer on the road.
Another way to bring your premium down could be by driving less where you can as some insurers may offer lower premiums to those who use their car less often.1
If you’ve been perceived as a higher risk to insurers, you may still be able to find cover to suit your situation. If you are exploring insurance options or want to know more about the cover options at Youi, consider starting a quote online or giving our friendly team a call on 13 9684.
1 Source: Canstar – Car insurance for high-risk drivers: What to consider, April 2025
2 Source: Australian Government – Younger Australians, June 2026
3 Source: Australian Government – Road safety of older people, June 2026
4 Source: Financial Rights Legal Centre – Understanding your Insurance Policy, January 2023
5 Source: NSW Government – Your licence from age 70, n.d.
6 Source: ACT Government Access Canberra – Medical conditions and fitness to drive, n.d.
7 Source: Qld Government – Driving when you’re 75 and over, December 2024
8 Source: Legal Aid Queensland – Traffic offences, April 2025
9 Source: Financial Rights Legal Centre – High Insurance Premiums or Cover Refused, February 2026
10 Source: Legal Aid New South Wales – Who is at fault in a car accident?, n.d.
11 Source: Moneysmart – No claim bonus on car insurance, n.d.
12 Source: Canstar – What does car insurance not cover?, January 2025
13 Source: Canstar – Do demerit points affect your car insurance premiums?, April 2026
14 Source: Motor Accident Insurance Commission – About CTP Insurance, November 2024
15 Source: NSW Government State Insurance Regulatory Authority – Use the Green Slip price check, January 2026
16 Source: Insurance Council of Australia – What is duty of disclosure?, n.d.
17 Source: Legal Services Commission South Australia – The insured’s duty of disclosure, March 2021
18 Source: Financial Rights Legal Centre – Car Insurance Claim Refused, April 2026
19 Source: Finder – Car insurance with a criminal record, April 2026
20 Source: Moneysmart – Choosing car insurance, n.d.
21 Source: NSW Government State Insurance Regulatory Authority – Compulsory Green Slip insurance, April 2025
