Insuring your car

How to pick the best car insurance if you’re under 25

Age is an important factor when choosing car insurance. Someone who is 20 years old will likely have different criteria than a 50-year-old, even people within the same age range can have very different needs. If you’re looking for car insurance for someone under 25, there are a few factors you can consider to help narrow it down.

Types of car insurance

If you’re shopping around for car insurance for the first time, get to know the differences between what’s on offer. GIO offers five main types of car insurance.

Compulsory Third Party

Every Australian driver must have insurance that covers driving-related injuries to third parties. In most states this takes the form of Compulsory Third Party (CTP) Insurance, also known as ‘Green Slip’ Insurance in some states. In the ACT, drivers are required to have Motor Accident Injuries (MAI) insurance.

CTP and MAI help you cover costs related to injuries you cause to other people while driving, such as medical costs and lost income payments — they don’t cover damage to your car or damage you might cause to other people’s cars/property. This is why it’s important to consider an optional insurance policy, like Third Party Property Damage or Comprehensive Car Insurance.

CTP insurance is often bundled into the cost of your registration, and doesn’t need to be arranged separately. However, in the following states, you need to take out your own CTP or MIA Insurance before you can register your vehicle:  

  • New South Wales
  • South Australia
  • Australian Capital Territory
  • Queensland

Third Party Property Damage

Third Party Property Damage Insurance covers you for damage you may cause to other people’s vehicles and property. At GIO, it can also cover you up to $5,000 for damage to your car by an uninsured driver, if you can prove they were entirely at fault and you can provide us with that person’s:

  • name
  • address, and
  • registration details

Third Party Fire & Theft

If you take out Third Party Property Damage Insurance, you can add Fire & Theft to your policy as an extra level of cover. This covers you for:

  • theft of your car
  • damage from an attempted theft, and
  • fire damage

It can also cover the cost (up to $1,000) of replacing accidentally lost or damaged personal belongings inside the car as a result of an insurable event. There are limits to this, such as not covering loss or damage to tools (e.g. those associated with your business). To see what’s covered in your policy, check out your relevant policy in our Product Disclosure Statement.

Comprehensive Car Insurance

Like Third Party Property Damage, Comprehensive Car Insurance covers damage you may cause to other people’s vehicles — but it can also cover damage to your own car. It can also help with associated costs, like towing, and gives you access to optional covers like Roadside Assist. 


Platinum Car Insurance includes the same coverage as Comprehensive Car Insurance but with a variety of extras and services. 


Explore GIO car insurance


Weighing up car insurance types for people under 25

1. Cost

Young drivers often choose basic car insurance coverage, like Third Party Property, because it’s cheaper than Comprehensive. But it’s worth remembering that Comprehensive Car Insurance can cover you for accidental damage, theft or if you’re in a collision. If your car is expensive or you’re considering its resale value, Comprehensive coverage might be worthwhile. 

2. Experience

It might make sense to choose a basic level of coverage as a younger driver, but younger drivers are often less experienced drivers. Consider the level of risk you want to take when purchasing car insurance – if you’re less experienced, do you believe you’re more likely to be in an incident that could damage your own car as well as another?

3. Vehicle usage 

Consider how often you drive and where you keep your car, as these factors can impact your car insurance premiums. 

Factors that can affect your premiums

Besides where you park your car and how often you drive it, there are some other factors that can impact the cost of your premiums which can help you decide between policies. 

1. Driving history

Prior infringements, such as speeding tickets or driving under the influence, can have an impact on your premiums. Completing safe driving courses is also considered by some insurers when assessing your premiums. 

2. Claims history

If you have a history of claims, an insurer may consider you a higher risk driver, which can affect your premiums. 

3. Type of car

If you’re under 25, the state or territory in which you live may have restrictions against driving a high-powered vehicle, especially if you’re a P-plater. Even if you are legally allowed to drive a high-powered vehicle, your insurer may consider this as a risk factor for an accident.

Besides this, an insurer will assess the value of your car and your premiums will reflect this calculation. 

Start the conversation

Your first step in getting the best price and coverage for your situation is to get a quote. We'llask you some simple questions that touch on the above to help us understand your needs so we can best present you with policy options.  

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AAI Limited Trading as GIO. Insured issued by AAI Limited ABN 48 005 297 807 trading as GIO. Registered office, Level 23, 80 Ann Street, Brisbane QLD 4000. 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 Dislosure Statement before you make any decision regarding this product. The Target Market Determination is also available. The information is intended to be of general nature only. We do not accept any legal responsibility for any loss incurred as a result of reliance upon it – please make your own enquiries.