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Car insurance tips for young drivers


Most young drivers looking to buy car insurance are often left paying more than experienced drivers. We get it. You want insurance that suits your needs without paying through the roof. 

Explore these tips and tricks to help you understand your car insurance options and save a few dollars along the way too.   

Know what each level of cover does 

AAMI offers a range of car insurance options to suit your needs. Whether you’re after comprehensive, third party or CTP insurance cover, you’re in good hands. 


Explore AAMI Car Insurance 

Let’s break down what each insurance cover means: 

Comprehensive Car Insurance 

Comprehensive Car Insurance is your ‘bells and whistles’ cover and is a popular option for many motorists. It provides a higher level of cover for accidental damage or loss, letting you enjoy the full protection of your vehicle even if you’re deemed at-fault in the accident. 

It’s important to remember that there is an amount you’ll need to pay, regardless of what car insurance you have, when making a claim on your policy. 

Third Party Car Insurance

Third Party Car Insurance covers you in the event of an accident for damage to another vehicle or property, if you’re found to be at fault. It can be a handy insurance to have when you know that you can’t afford to repair damage out-of-pocket. 

Third Party Fire & Theft Insurance

An optional extra for damages sustained to your vehicle on top of third party. You guessed it – this provides cover against fire, theft or attempted theft. 

Compulsory Third Party (CTP) 

CTP Insurance covers the driver of a car for personal injury caused to someone else. However, it doesn’t cover damage to your own vehicle or someone else’s vehicle or property, so you could still be out-of-pocket if you don’t have additional car insurance and you’re in an accident.

Become an additional driver 

Driving someone else’s car could qualify you as an additional driver on their insurance policy. This is acceptable when you don’t own the car, but drive it regularly. Although, the policy holder may have to pay a higher premium simply because there’s more risk involved. 

Be careful! Don’t confuse this with insurance fronting. If you own a car and decide to list your parent or guardian as the primary driver – and leave your name off the insurance policy – this is against the law, and is called insurance fronting. Not only is it illegal and considered fraud, it can also lead to big out-of-pocket costs when your claim is rejected and your insurance becomes void. 

Work out what cover you may need 

Your individual needs are going to be totally different. But there are some things we think everyone should consider. These include: 

  • The condition of your car, such as age and model, how many kilometers travelled, service history, and its price on the market.  
  • How often you’re using your car and what you’re using it for, such as travelling to work or getting to the shops and back.  
  • How much could you afford to pay in the event of an accident.  
  • Any future plans with your car. You might have plans to sell and therefore, you want to maintain its resale value. 

Understand the insurance lingo  

Curious about ‘insurancy’ terms like premium and excess? Here’s a quick run down to turn you into an expert:  

  • Premium: the amount you pay each billing cycle for your car insurance policy. 
  • Excess: an amount that you must pay towards a claim. You’re able to vary your excess on your policy, so it’s worth exploring further.

Save on your car insurance  

We all love a bargain and when it comes to car insurance you can save a little money, too. 

You can jump online and grab an insurance quote, and get $50 off your new quote for an online policy. This discount is only for online customers, so it’s easy to save yourself the hassle of phone call, when you can apply directly online. 

AAMI also offers a Skilled Drivers Course that’s available to comprehensive policy holders under 25 years old at your own cost. If you complete the course and you’re a listed driver, you could get a up to a 10% discount on your policy. Check out the terms and conditions for more details.    

Get the low-down on what you’re buying  

Nobody likes reading between the lines. But it’s worth reading up on our Product Disclosure Statement and the Additional Information Guide. These guides contain information about the financial product, such as its risk and benefits.

You can also explore things such as: 

  • Who and what is covered within your insurance policy. 
  • What policy exclusions and limitations apply.
  • How much the coverage costs, including premium and excess cover.  

Evaluate your needs each year 

Most people’s needs constantly change. Whether you’re at studying or learning a trade, it’s important to ensure that you’re covered even when your needs change. 

It can be a good idea to check your policy before the end of the renewal period, either through your online account or by contacting us.

Manage your policy online

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AAMI Car Insurance, Motorcycle 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. Consider the Product Disclosure Statement before making a decision about this insurance. This advice has been prepared without taking into account your particular objectives, financial situations or needs, so you should consider whether it is appropriate for you before acting on it.