KEY POINTS:
- Learner and young drivers can either take out their own car insurance policy, or be added to a parent’s policy.
- If the learner or young driver has their own car, they need their own policy.
- Car insurance cover for inexperienced drivers tends to come with higher excesses and premiums.
You don’t have to take out car insurance. But accidents do happen … and a lot of them. According to the Insurance Council of New Zealand, over $2 billion in vehicle insurance claims were made last year.
And for young and inexperienced drivers, the likelihood of incidents is much higher. So if you value your car, it’s crucial that you arrange cover for any young driver who gets behind the wheel.
Can you get car insurance for a learner driver?
Yes, you can get car insurance for a learner driver. However, there isn’t a specific insurance plan for learner drivers. Instead, you need to either include cover for your child on your insurance, or arrange for their own individual cover.
What does car insurance for learner drivers cover?
If you arrange individual cover, it will be like any other car insurance policy, although with a steeper excess and premiums, to account for younger drivers’ higher levels of risk.
Policy rules are also tighter for learner drivers, as insurance cover is only provided if the driver doesn’t break the conditions of their licence. And there are far more conditions attached to learner and restricted licences. These include:
Learner licence
- There must be a supervisor in the front passenger seat, somebody who has held a full licence for at least two years
- L plates must be displayed at all times
- If the driver is under the age of 20, they can’t drive with any alcohol in their system. For those 20 and above, the limits are:
- 50mg of alcohol per 100ml of blood
- 250mcg of alcohol per litre of breath
Restricted licence
- Can drive solo between the hours of 5am-10pm. Outside of these hours, a supervisor must be in the front seat
- The above alcohol restrictions apply
- Cannot carry passengers unless a supervisor in the front seat
- Exemption to the above rule applies if the passenger(s) being carried are a:
- Spouse or partner (married or in a civil union)
- Financially dependent child
- Parent or guardian
- Relative(s) that lives at same address and is on a social security benefit
- Person for which you are the primary caregiver
Does a learner driver need their own car insurance?
This depends on the car being used. If you buy a car for your child to use, and they are its main driver, then the insurance must be in their name. You can’t put the insurance in your name if you’re not the car’s main driver(s). This is called fronting, and is considered fraud. Car insurance must be in the name of the vehicle’s main driver(s).
But if your child is using a family car to learn to drive, they don’t require their own policy, and can be covered by yours.
How do I include my child in my cover?
Most car insurance policies have restrictions on drivers under the age of 25, who have to be specifically named on a policy. Adding your child to your policy will only take a call to your insurance provider, but expect your premiums to go up.
Best Car Insurance for Learner and Young Drivers
If you’re looking for great value car insurance for you and your family, Canstar can help. Each year we release our Car Insurance Awards, which include detailed Star Ratings of the best car insurance policies and providers across a range of driver profiles.
Below are the insurance companies that our expert research panel judged as providing Outstanding Value Comprehensive Cover Insurance for Families with Young Drivers. And also those that offer the best individual policies for young female and male drivers.
Families with Young Driver: Comprehensive Cover
| Provider | Star Rating |
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See here for our ratings methodology. The table above is an abridged version of our research. For the full results of our latest Car Insurance Ratings and Award, click here.
Best Cover for Young Drivers
As we mention above, if a young person is the main driver of a vehicle, they must have their own car insurance cover. And younger drivers can expect to pay higher premiums, especially if they are male. But that doesn’t mean a policy has to be poor value for money.
Below are snapshots of Canstar’s latest Outstanding Value Car Insurance ratings, revealing the best insurers for both under-25 female and male drivers.
Under-25 Female: Comprehensive Cover
| Provider | Star Rating |
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Under-25 Male: Comprehensive Cover
| Provider | Star Rating |
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See here for our ratings methodology. The table above is an abridged version of our research. For the full results of our latest Car Insurance Ratings and Award, click here.
About the author of this page
Bruce Pitchers is Canstar NZ’s Content Manager. An experienced finance reporter, he has three decades’ experience as a journalist and has worked for major media companies in Australia, the UK and NZ, including ACP, Are Media, Bauer Media Group, Fairfax, Pacific Magazines, News Corp and TVNZ. As a freelancer, he has worked for The Australian Financial Review, the NZ Financial Markets Authority and major banks and investment companies on both sides of the Tasman.
In his role at Canstar, he has been a regular commentator in the NZ media, including on the Driven, Stuff and One Roof websites, the NZ Herald, Radio NZ, and Newstalk ZB.
Away from Canstar, Bruce creates puzzles for magazines and newspapers, including Woman’s Day and New Idea. He is also the co-author of the murder-mystery book 5 Minute Murder.
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