Young drivers on provisional licences are paying the highest comprehensive car insurance premiums in Australia, with new research suggesting some motorists in higher-risk age groups could face insurance bills more than $1,200 apart depending on the insurer.
Analysis by Compare the Market found 17-year-old P1 licence holders attract the highest average annual premium at $3,897, around $580 more than 16-year-old learner drivers, whose supervised driving is associated with a lower risk profile. Premiums then fall sharply for 18-year-olds on P2 licences before gradually declining through middle age.
The research examined comprehensive insurance quotes from eight insurers for the same 2026 Toyota Corolla Ascent Sport Hybrid and a standardised driver profile across ages 16 to 99. Average premiums reached their lowest point at age 64 before rising steadily through older age groups, peaking at $2,755 for 99-year-old drivers.
Compare the Market Economic Director David Koch said insurers based pricing decisions on historical claims data.
“They say the best predictor of the future is the past, and basically every time someone makes a claim it adds to the tapestry of data insurers use to calculate future risk,” Mr Koch said. “Young drivers starting out on their provisional licence are less experienced on the roads and statistically much more likely to be in a serious crash. The higher the risk of an accident, the higher the premium.”
The analysis found average premiums drop by about $1,000 between ages 17 and 18 before continuing to ease over the following decades. By age 64, the average quoted premium was $1,332, after which prices began to climb again each year.
Mr Koch said motorists in age groups viewed as higher risk should still compare policies because insurers assessed risk differently.
“All insurers have different risk appetites, and some will even cater to higher risk groups,” he said, adding that although younger and older drivers generally paid more, “there were often much cheaper premiums available.”
“In one case we found a $1,219 difference between quoted premiums for a 17-year-old P-plater. That’s not a bad bit of pocket money for 15 minutes of legwork.”
The comparison service also suggested mature-aged motorists could reduce premiums by restricting the age of nominated drivers on their policy and adjusting their excess.
The research was based on quotes obtained on 21 May 2026 for a Brisbane-based female driver with no claims history, a $900 basic excess and no vehicle modifications, using a next-day policy start date.
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Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.