Car insurance for P-platers and young drivers 


There’s no better feeling than when you’ve just got your probationary licence. It’s finally time to slap your P-plates on the back of your car and enjoy some independence on the road. But just as you’re getting the hang of driving, it’s also worth thinking about your car insurance.

This article will explore the different types of car insurance and explain how it affects P-plate drivers.

Check to see whether you’re already covered

If you’re planning to drive a relative or guardian’s car as a P-plater, some insurers might allow for additional drivers on the policy, though this may impact the excess you have to pay in the event of a claim. This could apply if you’re under a certain age or if the insurer defines you as an inexperienced driver. To find out, it’s worth having a chat with your relative or guardian about their insurance policy cover.

Explore your cover options

There are different types of car insurance options. So it’s worth considering what’s going to suit your needs.

Compulsory Third Party (CTP) Insurance

In Australia, CTP Insurance is required by law. CTP provides cover for compensation claims from people injured in a motor vehicle accident. Although it does not cover damage to your vehicle, other vehicles or property. 

In Victoria, Western Australia, Tasmania and the Northern Territory, CTP Insurance is included in the price of your vehicle registration. In Queensland and South Australia you can choose a CTP insurer when you register your car or renew your registration. 

In the ACT, Motor Injury Accident (MAI) Insurance covers all people injured in a motor accident, regardless of fault, for up to 5 years. You can choose a MAI insurer when you register your car or renew your registration.

In New South Wales – where CTP is better known as ‘Green Slip’ —, you must buy CTP insurance before you can register your car.


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Third Party Car Insurance

Third Party Car Insurance covers the costs of repairing damage to another car involved in an accident, or someone’s property in an incident where the driver of your car was at fault.

It’s important to note that this type of insurance usually has a cap on how much can be paid out and varies with each policy.

If you’re at fault you will have to pay an excess that you agreed to when buying your car insurance. Say if you’re involved in a minor prang that causes $2,000 worth of damage to the other car, your insurance could cover this damage, but you’ll have to pay your excess.  

Comprehensive Car Insurance

With Comprehensive Car Insurance, you might be covered regardless of who’s at fault in an accident. This type of insurance is on the pricier end of the insurance scale, but covers you in a variety of situations, like:

  • Accidental loss or damage cover from an accident.
  • Your legal liability for damage to other people’s property (which is also included in Third Party Insurance).
  • Any transport, towing and storage costs after an accident.

When buying Comprehensive Car Insurance  

When you’re shopping for Comprehensive Car Insurance, you’ll want to keep a few things in mind. For starters, consider the amount of excess (the amount you have to pay upfront) you’ll be willing to pay if you have to make a claim.

Most insurers have a standard excess that applies to every claim, while a voluntary excess can be chosen, with the option for you to reduce or increase your premium. You’ll need to talk to your insurer and consider whether the excess is something you can afford when an accident happens.

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Most insurers apply an age excess if you’re under the age of 25. This is because you’re likely to have less experience driving on the road and therefore you’re more at risk of having an accident.

For that reason, it might be worth picking a policy that allows you to adjust your excess to help lower your premium (the amount you pay monthly or yearly). AAMI Flexi-Premiums excess allows you to reduce your premium. It may suit you if you need to save on the cost of your car insurance now. It does mean that you will have a higher excess if you need to make a claim.

It’s also important to think about whether your car is insured for market value or for an agreed value.

You can either choose to insure your vehicle for its market value or the ‘amount covered’ which allows you to set the amount you want your car to be insured for. Say if your car is 5 years old, it could be insured for an ‘amount covered’ of $14,000. This figure is the maximum amount paid for loss or damage to your car caused by an insured incident.  

Know when you’re not covered

As a P-plater, you have to abide by specific rules until you receive your full licence. These rules are not only important to follow for your safety, but also because, if you have an accident while breaking one, your insurer may refuse to pay your claim. These rules include:

  • driving under the influence of alcohol
  • speeding
  • misleading your insurer with the type of car you drive
  • using your mobile phone, including hands-free
  • carrying passengers under 21 during restricted times (each state may have varied laws, so make sure you check), and
  • supervising a learner driver.

If you’re as excited about driving as we are about insurance, you’ll be able to find a policy that suits your needs. Explore cover you when you need it the most, and get an AAMI Car Insurance quote. You can contact AAMI when convenient or simply ask us a question on Messenger. Still need time to explore your options? Browse our car insurance online today!

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AAMI Car Insurance, NSW and ACT CTP Insurance, and Caravan Insurance are issued by AAI Limited ABN 48 005 297 807 AFSL 230859 (AAI) trading as AAMI. Any advice has been prepared without taking into account your particular objectives, financial situation or needs, so you should consider whether it is appropriate for you before acting on it. Please read the relevant Product Disclosure Statement before you make any decision regarding this product. The Target Market Determination is also available.