Car insurance for learner drivers

Looking for car insurance for learner drivers? Here’s how to find the right cover and quote for you.

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Learner driver

Congratulations, your child has passed the learner licence theory test and is ready to get behind the wheel. You now need to learner-proof your car before they can start driving. The first step is to make sure they know the unspoken road rules (all other drivers are crazy!) The second is to make sure your car insurance is ready to cover your learner driver without costing you too much.

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AMI Young Driver Car Insurance
AMI Young Driver Car Insurance
    • AMI treats young drivers like good drivers straight away with at least a 50% no-claims bonus.
    • Take out Renters Insurance too and get a Student Multisaver discount.
    • Agreed value comprehensive, third party fire and theft, or third party only cover.

Compare and you might save on car insurance for learner drivers

Name Product Accidental Damage Roadside Assistance New Car Replacement Fire and Theft
State Comprehensive Car Insurance
Yes
Optional
Yes
Yes
Save $50 when you buy online. Optional roadside rescue, windscreen glass cover and hire car add ons.
Tower Comprehensive Car Insurance
Yes
Optional
Yes
Yes
Save $50 when you buy your policy online and earn Airpoints Dollars. Get a multi-policy discount of up to 20%. Optional roadside assistance.
AMI Comprehensive Car Insurance
Yes
Optional
Yes
Yes
Agreed value cover and choose an excess that works for you. Add AMI's Standard Breakdown Service for $32 per year, including three call outs per year.
Cove Comprehensive Car Insurance
Yes
Optional
New car cover for accidental cover of cars less than 12 months old
Yes
Join now and get one month free on your new policy worth up to $100. Monthly contracts you can cancel any time.
The Warehouse Everyday Plus Comprehensive Car Insurance
Covered up to the amount on your schedule
Optional
Up to $150,000
Yes
Agreed value cover with lifetime guarantee on repairs. Most claims handled by phone with no forms to fill in.
Protecta Comprehensive Car Insurance
Yes
Yes
New for old replacement for vehicles less than a year old
Yes
Discounts for named drivers only and excluding under 25s. Full no-claims bonus applied to new quotes.
Club Auto Comprehensive Car Insurance
Yes
Yes
N/A
Yes
Discount for 2 or more vehicles. No excess for windscreen and windows, plus optional cover for high-value items.
ANZ Comprehensive Car Insurance
Yes
Optional
Should be less than 1 year old and has less than 15,000 kilometres on the odometer
Yes
Multi-policy discount when you have 2 or more policies with ANZ, and a discount for excluding drivers under 25. Optional roadside assistance.
Trade Me Comprehensive Car Insurance
Yes
Optional
Market value
Yes
15% discount for Trade Me members plus a multi-policy discount of up to 20%. Only one excess to pay for one event.
AMP Comprehensive Car Insurance
Yes
Optional
Less than 1 year old
Yes
Increase your excess and pay a lower premium. Guarantee on repairs and optional roadside assistance.
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Name Product Accidental Damage Roadside Assistance New Car Replacement Fire and Theft
State Third Party, Fire and Theft Car Insurance
Yes
Optional
No
Yes
Save $25 when you buy online. Optional roadside rescue and windscreen glass cover add ons.
Tower Third Party, Fire and Theft Car Insurance
Yes
Optional
Yes
Yes
Save $50 when you buy your policy online and earn Airpoints Dollars. Get a multi-policy discount of up to 20%. Optional roadside assistance.
AMI Third Party, Fire and Theft Car Insurance
Yes
No
No
Yes
Optional cover for glass breakage, medical expenses and accidental death. No-claims discount of up to 60%.
The Warehouse Third Party, Fire and Theft Car Insurance
Covered up to the amount on your schedule
Optional
Up to $75,000
Yes
Market value up to the amount covered. Up to $5,000 for damage caused by uninsured drivers.
Protecta Third Party, Fire and Theft Car Insurance
Yes
No
No
Yes
Discounts for named drivers only and excluding under 25s. Full no-claims bonus applied to new quotes.
Club Auto Third Party, Fire and Theft Car Insurance
Yes
Yes
N/A
Yes
Liability and completion of journey cover included. Can be purchased as short term cover for visitors to New Zealand.
ANZ Third Party, Fire and Theft Car Insurance
Yes
Optional
No
Yes
Get a multi-policy discount when you have 2 or more policies with ANZ. Optional 24/7 roadside assistance.
AMP Third Party, Fire and Theft Car Insurance
Up to $5,000
Optional
No
Yes
Increase your excess and pay a lower premium. Cover for damage by uninsured drivers and optional roadside assistance.
Vero Third Party, Fire and Theft Car Insurance
Up to $3,000
No
Yes
Yes
Market value cover in the event of fire or theft. Includes up to $3,000 for damage caused by an uninsured driver.
ASB Third Party, Fire and Theft Car Insurance
Yes
Optional
No
Yes
A claims-free discount of up to 65%, plus discounts for over 55s, excluding drivers under 25, security systems and multiple policies with ASB.
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Compare up to 4 providers

Name Product Accidental Damage Roadside Assistance New Car Replacement Fire and Theft
State Third Party Car Insurance
Yes
Optional
No
No
Save $10 when you buy online. Optional roadside rescue and windscreen glass cover add ons.
Tower Third Party Car Insurance
Yes
Optional
No
No
Save $50 when you buy your policy online and earn Airpoints Dollars. Get a multi-policy discount of up to 20%. Optional roadside assistance.
AMI Third Party Car Insurance
No
No
No
No
No-claims bonus of up to 60%. Multi saver discount when you have two or more policies with AMI.
The Warehouse Third Party Car Insurance
Yes
Optional
No
No
No-stress claims with no forms to fill in in most cases. Includes legal liability and damage by uninsured drivers.
Protecta Third Party Car Insurance
Yes
No
No
No
Discounts for named drivers only and excluding under 25s. Full no-claims discount applied to new quotes.
ANZ Third Party Car Insurance
Yes
No
No
No
Uninsured driver protection of up to $3,000 and legal liability up to $20 million.
Trade Me Third Party Car Insurance
Yes
Optional
No
No
15% discount for Trade Me members plus a multi-policy discount of up to 20%. Only one excess to pay for one event.
AMP Third Party Car Insurance
Yes
Optional
No
No
Increase your excess and pay a lower premium. Cover for damage by uninsured drivers and optional roadside assistance.
Vero Third Party Car Insurance
Up to $3,000
No
No
No
Includes up to $3,000 for damage caused by an uninsured driver and legal liability costs.
ASB Third Party Car Insurance
Yes
Optional
No
No
A claims-free discount of up to 65%, plus discounts for over 55s, excluding drivers under 25, security systems and multiple policies with ASB.
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How car insurance covers learner drivers

To make insurance easier, many providers automatically cover learner drivers on their parents’ policies. However, you typically need to pay an additional excess for claims made as a result of them being behind the wheel.

  • Basic excess. This standard excess always applies, whether it’s you or your child driving.
  • Learner driver excess. Learner drivers often have an excess applied.
  • Young driver excess. If they’re under 25, providers apply a young driver excess.
  • Inexperienced driver excess. This usually applies to learner drivers over the age of 25.
  • Undeclared driver excess. If you keep your premium down by not listing the learner driver on your policy, an additional excess may apply.
  • Optional excess. If you opt for a further excess to lower your premium, the provider will add this on.
  • Car excess. The insurer may apply an additional excess based on the age of your car or its type.

When your child gets behind the wheel, the excesses can quickly add up. If you’re not careful, they might become unaffordable, and prevent you from making a claim. Listing the learner driver on your policy will generally help keep the price down, at the cost of a higher premium. Depending on your needs, reducing the excess and offsetting the L-plate premium increase with discounts may be the way to go.

Check your product disclosure statement (PDS) for the following:

  • Whether you need to list the learner driver on your policy to cover them.
  • What additional excesses will apply for claims made while they’re driving and how it differs, depending on whether you list them on your policy.

It’s usually preferable to change insurers at renewal time, but if you do want to switch mid-policy, plan ahead of time.

How do I add a learner driver to my policy?

It’s relatively simple. You can usually:

  • Add a driver online, through your insurer’s policy management portal
  • Phone your insurer to let them know you need to add a learner driver to your existing policy

As we touched on above, it’s usually cheaper to add a learner driver to a current policy rather than taking out one in their name, which is due to a few facts:

  • Young drivers are heavily over-represented in New Zealand road crash statistics. For example, figures from the New Zealand Ministry of Transport reveal that “a young driver held responsibility for about three-quarters (74%) of all the crashes that involve young drivers. Also, a young driver had the primary responsibility for about two-thirds (65%) of the crashes that also involve other road users.”
  • Insurers view young drivers as more likely to take risks and engage in hazardous activities.
  • L-platers are inexperienced drivers, so even if you’re a learner over the age of 25 insurers will still classify you as being a high-risk customer.

Is separate learner car insurance worth it?

There’s really only one situation in which it’s worth it to pick up a separate policy for the learner, and that’s if they have their own car and plan to drive it. Whatever you do, don’t insure their car in your name if they’re going to be driving it more than you are. That is called car insurance fronting and is considered fraud.

In the end, it makes more sense to hold off on buying them their own car until they are experienced enough for their premiums to come down. Your policy will most likely cover them for free anyway, so there’s not much to lose. If they get into an accident, you’ll have to pay an additional young or inexperienced driver excess but that potential charge is better than definitely having to pay high premiums month after month.

How to drive down the cost of cover

Want to lower your car insurance premium? Remember a few simple tips:

  • Don’t get separate cover. It’s usually cheaper to be added to a parent’s policy as an authorised driver rather than taking out separate cover.
  • Keep a clean record. If they can manage to establish a clean driving record – no speeding fines, traffic infringements or insurance claims – over a few years, your premium will quickly reduce.
  • Choose the right car. A safe, reliable sedan or hatchback is cheaper to insure than a high-powered sports car.
  • Security. Cars with immobilisers and sophisticated anti-theft systems can enjoy a lower premium.
  • Garage your car. Vehicles kept overnight in a secure, locked garage cost less to insure than cars left parked on the street.
  • Choose a higher excess. By deciding on a higher excess when you buy a policy, you receive a lower premium.
  • Look for deals and discounts. From online discounts to premium reductions for loyal customers, keep an eye out for any special offers to help lower the cost of car insurance for learner drivers.
  • Shop around. Compare car insurance quotes from a range of companies to find the best value for money.

girls-on-vacation (1)What you should know before you go for your driving tests

L-plates

To get your L plates, you need to complete a computer-based road rules knowledge test. You can find details for the information included in the test in the road code handbook, which is available from the New Zealand Transport Agency or bookshops, and you can even complete sample tests online.

Restricted Licence

Learners need to have held their licence for at least six months before they take the restricted licence. To be granted your restricted licence you need to successfully pass the restricted licence practical test, in a car provided by you, which is designed to determine if your skills are at a level where you can safely drive without a supervisor under certain conditions.

There are restrictions imposed on learner and restricted drivers, so make sure you check out the NZ Transport Agency website and are fully aware of what you can and can’t do on the road before getting behind the wheel.

Did you know?

To supervise a learner driver, you must:

  • Have held a current full New Zealand driver’s licence for at least two years
  • Have a good understanding of the road rules
  • Be a competent driver, with no restrictions on your licence
  • Be able to communicate with the learner driver effectively
  • Not supervise while under the influence of alcohol or drugs

Tips on teaching your learner to drive

Teaching a teenager how to drive can be a frustrating and frightening experience for any parent. However, with at least six months of driving supervision in front of you, it’s a good idea to prepare for what lies ahead. Remember these simple tips to make the learning process as smooth as possible:

  • Safety first. Learning to drive is a stressful experience for everyone, so give your L-plater one less thing to worry about by making sure your car is in tip-top condition. If it’s due for a service, book it in straight away. Replace old or worn tyres and make sure everything inside and out is in good working order.
  • Brush up on your road rules. Are you completely up to date with the requirements on indicating at roundabouts? How about turning right at traffic lights, when there’s no green arrow? It’s pretty easy to pick up bad habits over a lifetime of driving, so it might be worth undertaking a little refresher to make sure you teach your learner to do things the right way.
  • Manual vs automatic. The transmission your learner drives is determined by the car you own. However, if you have an automatic and a manual at your disposal, remember if your learner gets their restricted licence in an automatic, they can’t drive a manual (unless they have a driver with a full licence beside them).
  • Find the right learning environment. Don’t throw a learner in at the deep end and take them straight onto rush-hour streets or a busy motorway. Find quiet streets in an industrial estate or suburban area, or even a deserted car park, so your learner can learn the basics without too much pressure. As their confidence and skills grow, you can gradually introduce them to more traffic and slightly more demanding driving situations.
  • Take it slowly. Learning to drive takes time, and despite their insistence otherwise, it’s common for learners to feel completely overwhelmed. Start by teaching your learner how to adjust the seating and mirror to their liking and go from there. Remember to focus on basics like steering, braking and changing gears before you worry about anything too advanced.

Don’t want the pressure? Try a driving school

Using a driving school allows you to learn from a professional driving instructor, and acquire the skills and confidence you need to become a safe and competent driver.

Before choosing a driving school, make sure you’re aware of the following:

  • Accreditation. To become an accredited driver trainer or driving instructor in New Zealand, a person must obtain a Driving Instructors’ licence. To get this, they must, among other things:
    • Complete an accredited driving instructor course.
    • Pass the fit and proper person check.
    • Pass a driving test.
    • Provide a medical certificate if required.
  • Cost. The cost of a driving lesson generally ranges anywhere from $50 to $75, but shop around to get an idea of the price of lessons in your local area.
  • Insurance. Before booking a lesson, check with the driving school to find out whether it has appropriate insurance in place to provide cover if you’re involved in an accident while in the instructor’s car.
  • Free lesson. The AA provides free lessons to those that are eligible. Check out its website for further details.

Frequently asked questions about insuring learner drivers

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