Discover why it can be challenging for young drivers to navigate car insurance and why it may come at a much higher cost.

In 2023, the 17-25 age group accounted for 22% of total driver fatalities in Australia (drive.com.au 2024). This is a worrying statistic that highlights the increased risk associated with young, inexperienced drivers which plays a part in contributing to higher costs of car insurance for this demographic.

As a young driver, or the parent or guardian of a young driver, it’s important to understand the factors that can influence car insurance rates. By having the relevant information, you can take the necessary steps to manage costs and ensure that adequate coverage is obtained while building a responsible driving record.

Higher car insurance for young drivers isn’t just about age discrimination. Several factors can influence these higher rates including statistically higher accident rates, lack of driving experience, and high-risk driving behaviours can all play a role in increased insurance. Making a conscious effort to address these behaviours can help reduce insurance premiums over time.

Key factors influencing higher car insurance for young drivers

By keeping a close eye on the factors that can influence higher car insurance rates for young drivers, you can make active changes that can help reduce premiums in the long run.

Inexperienced drivers are at higher risk of making mistakes while driving which increases the likelihood of accidents and insurance claims. Insurance companies consider young drivers to pose a higher risk on the road due to their limited exposure to driving and responding to different scenarios and conditions.

Youthsafe: Helping young people in Australia

Youthsafe is dedicated to empowering youth across Australia. Our wide range of programs and resources helps improve young driver safety and more including safety at work, while socialising, and during sporting events.

Our educational workshops, driver safety programs, and more are designed to create safe environments for young people. We aim to promote better responsibility and accountability for their safety and the safety of those around them by building a better support system that offers them the guidance they need.