Finding the best car insurance isn’t always easy. Not only do insurers make it hard to compare prices, but their policies and deals change depending on things such as your age, driving history, or even where you leave your car parked.
Unfortunately, car insurance premiums for drivers under the age of 25 are typically more expensive than for other age groups. Why? Well young drivers are a risk for insurers – they statistically have more claims than adult drivers, and this is why annual costs are higher than standard car insurance.
So to help you get the best bang for your buck, we’ve compiled a list of the best car insurance providers for young drivers.
Each year, we release our car insurance awards, covering winners for Insurer of the Year, Outstanding Value, and Most Satisfied Customers. As part of our award results, you can view our Outstanding Value Star Ratings for different age groups, to help you find the best car insurance for you and your family. Below is our 4-Star and 5-Star winners for drivers under 25. Click here to view our complete car insurance Star Ratings for all age groups.
NZ Under 25-year-old Male: Full/Comprehensive Cover
NZ Under 25-year-old Female: Full/Comprehensive Cover
Car insurance for drivers under 25: What’s the story?
Most drivers in this age bracket are still gaining driving experience. Even if they’ve been driving since they were 16, it takes time and experiencing various driving conditions to become a safe and confident driver.
Young drivers are often perceived as being more prone to risky behaviors such as speeding, distracted driving, and driving under the influence of alcohol or drugs. These behaviors contribute to a higher accident risk and higher insurance premiums.
So, even if you’re a responsible driver with no demerits, you’ll still have to pay higher premiums until you’re out of the under 25 age bracket. Fortunately there’s plenty of tips and tricks that can help you save on insurance.
How to save on insurance
Some tips to help you get the best deal on car insurance include:
- Choose a higher excess – doing so means you’ll have to pay more when making a claim, but will bring down premiums
- Pay upfront – instead of paying monthly, you can pay for the whole year up front for a discount
- Shop around – compare providers to find which ones could be best for you. Then, get a few quotes from those providers to get the best price
- Keep your car secure – if you have a garage or secure off-street parking, your car is at less risk of break-ins. Which can bring down the price of insurance
- Drive safely – accidents or even road violations can impact your insurance. A clean driving history can get you better deals, and benefits like no claims bonuses
- Limit who can drive your car – excluding cover for young drivers can help you save on premiums
- Bundle your insurance – does your provider also have home and contents insurance? Bundling both can earn you a discount
- Insure your car for its market value – this means instead of insuring your car for a fixed price (agreed value) your car is insured for what it is worth at the time of any accident. Roughly, what the car would’ve sold for on Trade Me
- Choose your extras carefully – there are plenty of add-ons to be had. But if they come at an extra cost, make sure they’re worth it
- Buy online – most of us buy online anyway. But if you’re one of the few people going in-store to get your insurance, you’re probably paying more than you have to
About the author of this page
This report was written by Canstar Content Producer, Caitlin Bingham. Caitlin is an experienced writer whose passion for creativity led her to study communication and journalism. She began her career freelancing as a content writer, before joining the Canstar team.