Youngest Driver and Your Obligations

Driver age is an important risk factor

When you purchase your greenslip, you are required to advise the age of the youngest driver of your vehicle.

Driver age is a factor that insurers use to assess risk and determine the price they will charge for CTP green slips. If the youngest driver is a learner driver, you are still obliged to advise the insurer.

If you do not advise the insurer, under the Motor Accidents Injuries Act 2017:

  • The fact the correct premium has not been paid on a greenslip does not affect the validity or operation of that greenslip.
  • If an incorrect greenslip premium has been paid, insurers are entitled to claim the difference between what was paid and what should have been paid.
  • If there is a claim on a greenslip and the person who purchased the greenslip avoided paying the correct premium by making a statement which they knew was false, then the insurer may claim up to $5,000 ($2,000 under the 1999 Act) from that person.

Green slips are more expensive

The main reason green slips are more expensive for younger drivers is because they are more likely to be involved in an accident. Young people tend to drive in riskier ways, for example, speeding or driving too close to the vehicle in front.

  • L-plate drivers are among the safest because they are under adult supervision.
  • P1-plate drivers are only 3% of all drivers but represent 20% of deaths and die at twice the rate of all drivers.
  • The first month of driving with P-plates is the riskiest time.

Young drivers are covered by the green slip of the vehicle they are driving, provided the vehicle registration is up to date. If they are involved in a collision, the price of the green slip may increase.

Comprehensive insurance can also be affected by having a younger driver:

  • Young drivers may not be included in comprehensive insurance of the vehicle they drive.
  • If they are covered by comprehensive insurance, a higher age-based excess may apply.
  • Check for other comprehensive insurance terms and restrictions that may apply to younger drivers.

How to reduce young driver premiums

Younger drivers will want to reduce their premiums as much as possible.

Primary factors used by insurers that affect greenslip prices are:

  • Geographic region
  • Type and age of vehicle
  • Age and gender of vehicle owner and driver
  • Driving history (offences, demerit points, years licensed)
  • Claims history (other insurance held, at-fault claims).

Young people cannot help being young, but can be encouraged to drive a safer vehicle. They can also work towards a clean driving history with no offences, loss of points, or insurance claims.

Safer Drivers Course

The Safer Drivers Course is one way to improve driving. It combines theory and practice for learner drivers under 25 who have completed 50 logbook hours, including night driving. The aim is to equip learners with the skills and knowledge to prepare them for P-Plates.

The course has two modules to complete within one month:

  1. A 3-hour group discussion with other L-platers about how to manage risks on the road
  2. A 2-hour in-vehicle session with a coach and another L-plater to learn practical, safe driving.

The course gives you a bonus of 20 hours of logbook credit so you need only 100 more hours of supervised driving to progress to P1. Call 13 2213 or go online to find the closest course provider.

How it Works - more info

Claims >

What to do if you want to make a claim from your CTP insurer. read more

Complaints >

How to make a complaint about your CTP insurer or SIRA. read more

Scheme changes 2009 and 2010 >

History of major changes to the NSW CTP scheme. read more

State Insurance Regulatory Authority >

Government authority responsible for the NSW CTP scheme. read more

At-fault Driver Cover >

What is At-fault Driver Cover and which insurer offers it. read more

Interesting statistics >

Statistics about motor vehicle accidents in the past year. read more

Discounts >

Discounts and ways to reduce costs on other insurance products. read more

Demerit Points >

How demerit points affect your driving licence and your greenslip read more

Pensioner concessions >

What kinds of concessions you can claim as a pensioner. read more

Mythbusters >

Quickly separate the facts from fiction about CTP green slips. read more

What is a greenslip? >

Find out exactly what is meant by a green slip in NSW. read more

Who and what is covered? >

Who and what is covered by your CTP green slip. read more

Third Party Insurance Scheme >

The Third Party insurance Scheme in NSW explained. read more

Lifetime Care and Support Scheme >

The Lifetime Care and Support Scheme in NSW explained. read more

Motor Accident Authority >

Previous authority responsible for the NSW CTP scheme. read more

Setting prices >

How green slip prices are set and how you could reduce them. read more

Geographical zones >

Greenslip prices set using geographical zones by postcode. read more

An explanation of the Fund Levy >

Cost of the Fund Levy and what it pays for. read more