Author
Bowtie Team
Updated on
2025-06-12
Disclaimer: This article is translated with the assistance of AI.
Curious about car insurance costs for new P-plate / Probationary Driving License (PDL) drivers? How much more does “third-party” or “comprehensive” cover cost compared to experienced drivers? What factors influence premiums, key tips to watch before buying, and do you need extra policies? Bowtie breaks it down with easy insights!
What is P-Plate Insurance? What Coverage Does It Provide?
The official name of the P-plate is the Provisional Driving Licence (PDL). Currently, anyone who passes the test for motorcycles, private cars, or light goods vehicles must first apply for a P-plate and comply with general driving restrictions and some additional ones during the 12-month provisional driving period. These include displaying “P” plates at the front and rear of the vehicle, not exceeding 70 km/h, and not driving on the “fast lane” of highways with three or more lanes. Only after completing this period can they apply for a full driving licence.
We often hear about P-plate insurance, which refers to the Car Insurance that vehicles driven by P-plate drivers must have. This car insurance can be divided into Third Party Insurance or Comprehensive Insurance :
- Third Party Insurance : It’s a legal requirement for vehicle owners or authorized users to purchase third-party insurance to cover bodily injuries or death to third parties caused by accidents. It typically provides up to $100 million in coverage for third-party death or bodily injury (as required by law) and $2 million for third-party property damage.
- Comprehensive Insurance : Building on the basic coverage of third-party insurance, it protects the insured vehicle against losses from theft, flooding, fire, traffic accidents, and more. Some insurers offer extra perks, like free towing, windshield replacement, or emergency roadside assistance. Since comprehensive insurance covers more ground, its premiums are higher than third-party insurance.
Compared to experienced drivers, P-plate insurance doesn’t qualify for any No-Claim Discount (NCD) , and due to the higher risk involved, both the premiums and the excess (the amount you pay out of pocket) tend to be much steeper.
How Much Does P-Plate Insurance Cost?
Comprehensive insurance premiums are largely influenced by the market value of the insured vehicle, so it’s hard to generalize. Let’s focus here on the third-party insurance premiums for P-plate drivers.
Without factoring in any NCD discounts, P-plate drivers’ third-party insurance premiums can be 2 to 3 times higher than those for regular drivers (with at least 2 years of driving experience and aged 25 or above).
In other words, if a regular driver’s annual third-party insurance premium is around $4,000, a P-plate driver’s could easily reach $8,000 or more. And if the P-plate driver is under 25, the premium might climb even higher.
Even if P-plate drivers are willing to pay these hefty premiums, some insurers might still turn down applications for drivers under 25 or for high-performance vehicles, all because of the elevated risk.
4 Major Factors Affecting P-Plate Insurance Premiums
The insurance premiums for P-plate drivers are higher, mainly due to the following factors that increase the insurance company’s underwriting risk:
- Driving Experience: P-plate drivers have just passed their driving test, so they have limited road experience. This makes them more prone to accidents in unpredictable traffic situations compared to seasoned drivers.
- Age: Insurance companies are more cautious with drivers under 25, and some might even reject applications from young drivers. This stems from their lack of experience, plus data showing that younger drivers often engage in riskier behaviors, like speeding or erratic lane changes.
- No Past Records to Reference: P-plate drivers lack any history related to auto insurance (such as claim frequencies, amounts, or past denials), which undoubtedly raises the insurance company’s risk assessment.
- Insured Vehicle: The vehicle’s age, model, and performance significantly impact premiums. Generally, sports cars, older vehicles, or those with higher horsepower come with steeper costs; plus, for comprehensive coverage, the higher the vehicle’s current market value, the more you’ll pay.
What Other Insurance Do P-plate Drivers Need?
Whether P-plate drivers opt for comprehensive coverage or third-party insurance, auto insurance only protects against third-party injuries/losses or damage to your own vehicle—it won’t cover risks to the driver themselves. With that in mind, new drivers should not only get auto insurance but also review their personal accident and life insurance needs. If you don’t have any accident or life insurance yet, it’s wise to get covered soon to protect yourself and your loved ones.
Insurance Tips for P-plate Drivers
Must Add Your Name for ‘Borrowed Name’ Insurance
Since P-plate insurance premiums are on the higher side, many new drivers buy cars under the name of a family member or friend who has more experience or even an existing No-Claim Discount (NCD). This is commonly known as ‘borrowed name’ for buying the car and getting insurance.
If you’re a P-plate driver using this ‘borrowed name’ approach, remember to proactively add yourself as a named driver on the policy; otherwise, the insurance company might deny claims or cancel the policy down the line. Also, keep in mind that even with this method, your premiums and excess fees will still be a bit higher than for typical drivers.
Get the Car in Your Name to Build NCD
While ‘borrowed name’ can help save on premiums, if your budget allows, it’s best for new drivers to register the car in their own name right away. Once you start insuring and avoid claims, you’ll qualify for NCD Discount the following year. Under the standard private car NCD system, you can get a 20% premium discount after the first claim-free year, and that could rise to 60% if you stay claim-free for five years.
If your budget is tight and you’re not in a rush for a car, you might want to wait until after a year when you ‘lose the P’ or after two years of driving experience—that could help you cut costs significantly.
Opt for Used Family Cars
As mentioned earlier, a car’s age, value, and performance affect premiums, so P-plate drivers should go for used family-friendly models under 10 years old, like entry-level sedans, SUVs, or seven-seater vehicles with lower horsepower.
Shop Around and Compare Quotes
Although many auto insurance policies now allow online applications, P-plate drivers might not get instant quotes from these systems, so you may need to call or email insurers directly for premium and excess details.
It might take a bit of time to check with multiple companies, but I recommend P-plate drivers do so and compare quotes—differences between insurers can be quite substantial.
If you get rejected by an insurer, don’t give up; reach out to auto insurance brokers or dealerships, as they handle P-plate cases often and know the ins and outs of various policies.
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