Car Insurance for Students

Compare online car insurance quotes side-by-side as a student today.

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, updated on February 15th, 2024       

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Car Insurance Banner - Young woman smiling while driving a car.

Are you a student in Australia looking for car insurance? As a student driver, finding affordable car insurance tailored to your needs can be a challenge. Many insurers consider students to be at higher risk of making a claim due to their age and limited driving experience. That’s why it’s important to survey the market closely before you buy. 

Comparing car insurance quotes online allows you to weigh up a variety of plans from leading insurers side-by-side, helping you determine which is the best possible coverage option available for you.

Can I get cheap car insurance as a student?

You’re unlikely to find a cheap car insurance policy as a young student in Australia. This is because car insurance premiums are higher for young or inexperienced drivers, as their risk of an accident is deemed to be greater than older drivers, such as those over 50, who have more experience on the road. However, there are still ways to help you reduce your car insurance premium, including:

  • Maintain a good driving record: building a clean driving history without any accidents and traffic offences can positively impact your insurance premium.
  • Avoid repeated small claims: the more claims you make, the greater your car insurance policy is likely to cost when it comes time to renew your coverage. Because of this, if you have a few dings and scratches which may cost less than your excess to fix, it might be worth handling it yourself for the sake of your policy’s cost.
  • Increase your excess: opting for a higher excess, which is the amount you contribute towards a claim, can lower your insurance premium. Just ensure you can afford the excess amount if you need to make a claim.
  • Pick a cheaper car to insure: if you’re looking to buy your first car, the make and model you choose can have an impact on the cost of your policy. More expensive and rarer models can attract higher premiums, so keep this in mind when choosing your car.
  • Compare quotes: shop around and compare quotes from different insurance providers. This will help you find the cheapest deal from our panel of lenders which offers the coverage you need, such as if you want cover for hail damage.

Remember, it's important to find a balance between affordability and the level of coverage you need. Be sure to read the product disclosure statement (PDS) carefully to understand what’s covered and any exclusions that may apply.

What factors affect the cost of car insurance for students?

Several factors can influence the cost of car insurance for students in Australia. Some of the key variables include:

  • Age and driving experience: as mentioned, being younger and having limited driving experience can result in higher insurance premiums due to the perceived higher risk associated with less driving history.
  • Type of vehicle: the make, model and age of the car you drive can impact your insurance costs. High-performance or luxury vehicles often come with higher premiums, as they’re considered more expensive to repair or replace.
  • Location: the area where you live and park your car can affect insurance rates. Areas with higher rates of crime, accidents or extreme weather may have increased insurance costs.
  • Claims history: your previous insurance claims or driving history can influence the cost of insurance. If you have a history of accidents or claims, it’ll likely lead to higher premiums.
  • Usage of the vehicle: how often and for what purposes you use your car can impact insurance costs. If you use your car for commuting long distances or to get to work (or for work itself if you’re a delivery driver), it may result in higher premiums than someone who catches the bus to university every day.
  • Car parking: how your car is parked can also impact your premiums, with insurance for parking on the road potentially costing more than for a car parked in a garage or private driveway.
  • Security measures: equipping your vehicle with security features like alarms, immobilisers or GPS tracking systems can help reduce the risk of theft and potentially lower your insurance costs.

It's important to note that insurance providers assess drivers differently, so the weight given to each factor may vary, which is why it’s important to obtain and compare various quotes before you buy your policy.

Can I buy a car insurance policy as a student with a learner’s permit?

It’s generally possible to purchase a car insurance policy as a student with a learner's permit in Australia. However, insurers may have specific requirements or restrictions for drivers with learner's permits, most often additional excesses which apply in the event of a claim.

It's important to check with different insurance providers to understand their specific policies and any limitations they may have for drivers with learner's permits. It’s also important to keep in mind that insurance premiums for drivers with learner's permits may be higher due to the limited driving experience and increased risk associated with novice drivers. Comparing quotes from different insurers can help you find a policy that suits your needs and budget while complying with the legal requirements for driving with a learner's permit.

Types of car insurance you can choose from

Third party property damage (TPPD)

The most basic type of optional cover available, TPPD insurance can offer protection for damage caused by your vehicle to other people's property. However, no damage to your vehicle will be covered.

Third party fire and theft (TPFT)

A step up from TPPD, TPFT insurance can also cover damage to your vehicle sustained due to a fire or theft (or attempted theft) in addition to third-party property damage if you're in an at-fault accident.

Comprehensive

The most extensive (and expensive) form of cover, comprehensive car insurance can also offer cover for damage to your vehicle in an accident, collision and certain weather events on top of the areas TPFT covers.

Frequently asked questions about car insurance for students

Can international students get car insurance in Australia?

International students may be able to get car insurance in Australia. However, it'll likely depend on factors such as the length of their stay and the type of visa they hold. You’ll also need to ensure your driver’s licence is valid in Australia and that your vehicle is registered in your state or territory, as driving unregistered is against the law and can void your car insurance coverage. Enquire about your eligibility and any specific requirements.

Are there any discounts available on car insurance for students?

In Australia, insurers don’t generally offer discounts for students. However, it’s still important to compare policies to help you find one which is the best fit for your needs and budget.

Can I be added to my parents' car insurance policy as a student?

As a student who uses their parents’ vehicles, you may be able to be added to their car insurance policy. Many insurers allow family members living in the same household to be added as additional drivers. However, it's important to check with your parents' insurer to understand their specific policy regarding adding student drivers. If you own and operate a vehicle yourself, though, you’ll likely need to take out a policy on your own.

If I don't drive much, are there any cheaper car insurance options available?

If you don't drive much, there may be cheaper car insurance options available. Some insurers offer usage-based policies, such as pay-as-you-drive insurance, where premiums are based on the distance you drive. These policies may be more affordable for students who have limited driving needs. However, it's advisable to inquire with insurance providers about such options and compare quotes to find the most suitable and cost-effective coverage for your driving habits.

What is CTP insurance?

Compulsory third party (CTP) insurance, also known as a Green Slip in some states, can cover personal injury liability and compensation for people injured or killed in motor vehicle accidents. It’s a mandatory requirement and must be purchased separately from your chosen car insurance policy, with some states offering this as part of your vehicle registration.

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