For many young women in Australia, owning a car is an exciting milestone. But one of the biggest challenges for women under 25 is finding affordable car insurance. Drivers in this age group often pay the highest premiums because insurers see them as higher‑risk.
Fortunately, there are ways to lower your costs while still getting good coverage. In this guide, we explain everything you need to know about the cheapest car insurance for women under 25 in Australia in 2025.
We cover the best providers, what affects your premium, how to save money, and which policies are worth considering. By the end, you’ll know how to secure the right insurance at the right price.
Why Is Car Insurance Expensive for Women Under 25?
Car insurance for young drivers especially those under 25 tends to cost more because:
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Young drivers have less experience and are statistically more likely to have accidents.
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Repair costs for newer drivers’ cars can be high.
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Insurers factor in age, driving history, and car type when calculating premiums.
While women under 25 often pay less than men in the same age group, premiums are still higher compared to older drivers.
How Much Does Car Insurance Cost for Women Under 25?
On average in Australia, a woman under 25 can expect to pay between $1,800 and $3,200 per year for comprehensive car insurance. This depends on:
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Where you live
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The make and model of your car
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Whether you park on the street or in a garage
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Your driving record
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The type of policy you choose
Best Insurance Providers for Women Under 25 in Australia (2025)
We’ve researched the most affordable insurers offering competitive rates and good service for young women.
1. Bingle
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Why it’s good: Very low‑cost policies for budget‑conscious drivers.
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Average premium: $1,800 – $2,400/year
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Features:
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No‑frills comprehensive cover
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Fast claims process
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Good for drivers with simple insurance needs
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2. Budget Direct
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Why it’s good: Known for affordable premiums and great discounts.
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Average premium: $1,900 – $2,600/year
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Features:
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Discount for no claims
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Choice of repairer options
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24/7 claims support
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3. Youi
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Why it’s good: Personalized policies that reward low‑risk drivers.
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Average premium: $2,000 – $2,800/year
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Features:
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Tailored quotes based on how you drive
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Discounts for low‑km drivers
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Flexible excess options
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4. Allianz
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Why it’s good: Trusted brand with solid cover and discounts.
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Average premium: $2,200 – $3,000/year
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Features:
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Comprehensive cover with roadside assistance
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Flexible payments
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High customer satisfaction
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5. AAMI
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Why it’s good: Flexible coverage and generous benefits.
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Average premium: $2,100 – $2,900/year
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Features:
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Lifetime repair guarantee
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Option to reduce premium with higher excess
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Coverage for new car replacement if written off
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Summary Table: Cheapest Car Insurance for Women Under 25 in Australia (2025)
| Provider | Average Annual Premium | Key Features |
|---|---|---|
| Bingle | $1,800 – $2,400 | Budget‑friendly, fast claims |
| Budget Direct | $1,900 – $2,600 | Discounts, flexible repairs |
| Youi | $2,000 – $2,800 | Personalized cover, low‑km discounts |
| Allianz | $2,200 – $3,000 | Roadside assist, flexible payments |
| AAMI | $2,100 – $2,900 | New car replacement, lifetime repairs |
What Does Comprehensive Car Insurance Cover?
For women under 25, a comprehensive policy is often the best choice because it covers:
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Damage to your car in an accident
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Damage to other people’s property
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Theft or vandalism
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Fire and natural disasters
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Towing and emergency repairs
It’s more expensive than third‑party insurance but gives you much greater peace of mind especially if you’re driving a newer car.
Tips to Get the Cheapest Car Insurance as a Woman Under 25
If you’re looking to save on your premiums, here are proven ways:
1. Choose a Cheaper Car
Cars with smaller engines, better safety ratings, and lower repair costs are cheaper to insure.
2. Increase Your Excess
A higher excess (the amount you pay if you make a claim) can lower your premium.
3. Drive Less
If you drive fewer kilometres, some insurers (like Youi) offer discounts.
4. Park Securely
Parking in a garage or secure car park lowers your risk and premium.
5. Take a Defensive Driving Course
Some insurers offer discounts if you’ve completed accredited courses.
6. Bundle Insurance Policies
If you have home or contents insurance with the same company, ask for a multi‑policy discount.
7. Maintain a Clean Driving Record
Avoid fines and accidents to build a no‑claims bonus.
Why Women Under 25 Often Pay Less Than Men
Insurers look at statistics when setting rates. Women under 25 are generally involved in fewer high‑impact crashes compared to men in the same age group. This is why, even though premiums are still high, women often pay about 10–20% less than young male drivers.
What You Should Do Next
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Get quotes from at least three of the insurers listed here.
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Choose a policy that balances price with the level of cover you need.
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Look for discounts based on low‑km driving, safe parking, and good driving history.
Frequently Asked Questions
1. Is car insurance mandatory for women under 25 in Australia?
Yes, you must at least have Compulsory Third Party (CTP) insurance. Comprehensive or third‑party property insurance is optional but recommended.
2. Why is car insurance more expensive if I’m under 25?
Younger drivers statistically have more accidents, which makes them higher risk to insure.
3. Does my premium go down when I turn 25?
Usually, yes. Insurers generally lower rates for drivers over 25 with clean driving records.
4. Can I be added to my parents’ insurance to save money?
Yes, you can often be listed as a secondary driver, which may be cheaper.
5. Should I choose third‑party insurance to save money?
It’s cheaper but doesn’t cover damage to your own car. If you have a newer or more expensive car, comprehensive is better.
6. Are there any discounts for students?
Some insurers offer discounts for full‑time students or if you complete a defensive driving course.
7. Can I change insurers if I find a better deal?
Yes. You can switch at any time, although you may need to pay a cancellation fee.
8. Does a higher excess always mean a lower premium?
In most cases, yes — but make sure you can afford the excess if you need to make a claim.
9. Are hybrid or electric cars cheaper to insure?
Not always. Some EVs and hybrids cost more to repair, so premiums can be higher.
10. How can I compare policies effectively?
Use comparison websites, but also contact insurers directly to ask about discounts not listed online.
Final Thoughts: Cheapest Car Insurance for Women Under 25 in Australia — 2025
Getting the cheapest car insurance for women under 25 in Australia is possible if you shop smart, understand what affects your premium, and choose a policy that suits your needs.
The key is to compare quotes, consider how much cover you actually need, and look for discounts based on your driving habits. Young women already benefit from slightly lower premiums than men, but there are still ways to save more.