High-Risk Car Insurance

If you’re considered a high-risk driver in Australia, finding affordable car insurance can be tricky. Whether it’s because of past accidents, traffic offences or limited experience behind the wheel, insurers will see you as a greater risk to cover and adjust their quotes to reflect this. But that doesn’t mean you’re out of options – while you might face more restrictions, there are still policies that could work for you.

What makes a driver ‘high risk’ in car insurance?

Insurers are more likely to label you ‘high risk’ if your past driving behaviour suggests a higher chance of claims, accidents or traffic offences. This might be because of:

• A history of at-fault accidents and insurance claims
• Multiple traffic violations
• DUI convictions
• Licence suspensions
• A criminal record, even if unrelated to driving
• A lack of driving experience
• Driving more than average and longer distances per year

If you tick any of these boxes, you may face more limited choices and higher premiums.

How can I get a car insurance policy as a high-risk driver?

Getting car insurance as a high-risk driver depends on why you're considered high risk in the first place.

If you're high risk simply because you're a younger driver on your Ps or because you drive a lot, most insurers offer cover, though you’re likely to pay more for your vehicle insurance. However, in other situations, obtaining insurance coverage as a high-risk driver can be more challenging. If you've been in a drink-driving accident and have DUI convictions, car insurers may refuse to cover you at all.  

While your insurance options may be more limited as a high-risk driver in certain situations, some insurance companies will still provide coverage. It’s important to see what options may be available to you, which you can do easily by comparing quotes online.

How much will I have to pay for my car insurance if I’m a high-risk driver?

High-risk drivers can expect to pay significantly more for car insurance – often hundreds of dollars more than lower-risk drivers – to reflect the increased likelihood of a claim in the eyes of insurers.

To illustrate the difference, we’ve used our partner’s comparison service to gather real quotes for both third party property damage (TPPD) and comprehensive cover, using the lowest prices available in May 2025.

Scenario	TPPD cover from	Comprehensive cover from	Provider options
No incidents or claims	$529	$1,611	Multiple
5 at-fault claims in 3 years	$828	$2,554	Single
5 not-at-fault claims in 3 years	$828	$2,554	Single
1 at-fault claim in 3 years	$653	$2,220	Multiple
1 not-at-fault claim in 3 years	$563	$2,011	Multiple
Younger driver – P1 (no claims)	$1,245	$3,410	Multiple
Younger driver – P2 (no claims)	$802	$2,431	Multiple

All quotes are based on a male driver born in 1995, driving a 2020 Toyota RAV4, with a full Australian licence, located in Adelaide (5000), and a $600 excess. For younger driver scenarios, the date of birth is adjusted to 2005 and licence type updated to match (P1 or P2).

As you can see, new drivers face the highest car insurance costs – but moving from P1 to P2 can significantly reduce premiums, with costs continuing to fall as the level of associated risk reduces.

When it comes to claims history, being at fault typically raises premiums more than not-at-fault claims. However, if you’ve made multiple claims within three years, insurers may treat you as high risk regardless of fault, with little to no difference in premiums. You’ll also find your provider choices restricted – in our research, only one insurer was willing to cover drivers with multiple recent claims.

What restrictions may be placed on high-risk car insurance?

Many car insurance policies have limitations due to the increased risk associated with insuring high-risk drivers. While the specific coverage details vary depending on the insurer and policy, restrictions could include:

• Higher premiums: as mentioned, insurers assess driving experience when processing insurance quotes. Young drivers and those with a bad driving record typically face higher insurance premiums.
• Limited provider options: not all insurers are willing to offer policies to high-risk drivers or if you’ve made multiple claims.
• Higher excess: policies for high-risk drivers may include higher excess amounts and may exclude certain types of cover, such as for specific drivers, vehicle uses or types of damage.

How long will I be considered high-risk by my insurer?

This can vary depending on your circumstances, your driving history and where in Australia you live, but demerit points from traffic offences generally stay on your driving record for at least three years. As time passes without any additional accidents or offences, your risk level may decrease.

Insurance providers typically review your driving record over a specific period, such as three to five years, to assess your risk. If you maintain a clean driving record and demonstrate responsible driving behaviour, you may eventually transition to a lower risk category and qualify for more affordable insurance options.