A guide to provisional licences and car insurance for P-platers
Provisional licence basics
What is a provisional licence?
A provisional licence (also known as ‘P-plates’ or ‘Ps’) is the first driving permit that allows you to drive without the supervision of an experienced licensed driver. There are generally two stages of a provisional licence before Australian drivers can hold their open licence: P1 and P2.
What’s the difference between a P1 and P2 licence?
P1 (the red P-plates) is the first stage and has the most restrictions, while P2 (the green P-plates) has fewer restrictions. After you’ve driven on your red plates for a certain period of time (e.g. a year),and, in some states, passed a Hazard Perception Test, you can move on to a P2 licence. Depending on where you live, you may be able to bypass the P1 licence and apply for a P2 licence if you’re over a certain age (e.g. 25 years).
Can P-platers have passengers?
Yes, P-platers can have passengers but P1 licence holders have restrictions on whom they can have in their car. Some states may only allow P-platers to have one passenger under 21 between certain hours unless the additional passengers are immediate family.
Where do I put P-plates on a car in Australia?
You’ll need to put your P-plates on the front and back of your vehicle, in a position where they’re visible from at least 20 metres away.1 It’s important to place your P-plates correctly on your car since you could incur demerit points for not doing so.2
Check with your state government transport authority for more detailed guidelines on where to put P-plates on your vehicle.
Can P-platers rent cars?
Some vehicle rental companies may allow P-plate drivers to hire cars, while others may require you to have an open licence. Contact the hiring company to confirm any licensing requirements they might have.
Hiring a car overseas may come with even stricter conditions. While P-platers are able to obtain an international driver’s licence, car rental companies in other countries may only allow drivers aged 21 or older to hire a car.
What are the conditions for driving on a provisional licence?
Conditions for P1 and P2 motorists Australia-wide include always having your P-plates on display, zero alcohol in your system while driving and only driving the class of vehicle specified on your licence. P-platers also can’t supervise a learner driver or accumulate four or more demerit points.
In addition to these conditions across Australia, the following are specific restrictions for P-platers in each state and territory. These additional restrictions are mostly for P1 drivers, unless it’s stated otherwise.
Queensland provisional licence conditions
Passengers must not use a phone on loudspeaker while the P1 driver is behind the wheel. Queenslanders with a P1 licence also can’t have more than one passenger under 21 when they’re driving between 11pm and 5am, unless the passengers are family members.3
New South Wales provisional licence conditions
NSW P1 drivers generally can’t drive with more than one passenger under 21 between the hours of 11pm and 5am.4
P1 drivers in NSW also can’t drive faster than 90km/h,4 while P2 drivers have a speed limit of 100km/h.5
Victoria provisional licence conditions
P1 drivers in Victoria have a ‘peer passenger’ restriction, meaning they can’t drive with more than one person in their car aged 16-22. The partner of the driver (i.e. the spouse or domestic partner) and specific family members are typically exempt from this rule.
Exemptions may also apply if you:
- have a fully licensed driver in the front passenger seat
- drive an emergency or police vehicle for work
- have been granted one by VicRoads.6
Victorians with a P1 licence also can’t tow other vehicles or trailers unless there’s a licensed driver in the passenger seat or it’s specifically for work purposes.
South Australia provisional licence conditions
P1 drivers under 25 can’t drive between the hours of midnight and 5am, and they can’t have more than one passenger aged 16-20, unless:
- the passengers are immediate family members
- a Qualified Supervising Driver is sitting next to the driver
- the driver has an exemption.7
South Australian P-platers on the P1 licence also can’t drive faster than 100km/h.
Western Australia provisional licence conditions
Western Australian motorists on P1 plates can only have one passenger in their vehicle. They also can’t drive between midnight and 5am for the first six months of their provisional licence, unless they have an exemption for driving to work or study.8
Tasmania provisional licence conditions
Tasmanians on a P1 licence can only have one peer passenger aged 16-21 at any time.9 Exemptions to this rule may apply if it’s:
- someone you’re married to
- a partner who lives with you
- immediate family.
Australian Capital Territory provisional licence conditions
P1 drivers in the Australian Capital Territory are only allowed to have one passenger aged 16-22 between the hours of 11pm and 5am. Additional passengers are generally allowed if they’re family members.10
Exemptions may apply if driving between these hours is for employment or education.
Northern Territory provisional licence conditions
Drivers in the Northern Territory will have to hold a provisional licence for two years if they’re aged under 25 years or one year if they’re over 25. Territorians on their P-plates also can only drive up to 100km/h.11
What’s the best type of car insurance for P-platers?
There’s no single best type of car insurance product for P-platers, as the ‘best’ insurance for you will depend on factors unique to your situation, such as the level of cover you want. At the very least, it’s a legal requirement to have Compulsory Third Party (CTP) insurance, or the equivalent cover in your state (e.g. Green Slip in New South Wales). CTP insurance is mandatory for all registered vehicles in Australia and is there to cover your legal liability for injuries and deaths in a car accident where you’re at fault.
However, CTP insurance won’t cover vehicle or property damage you either cause or sustain. For these instances, you’ll need one of the following levels of cover:
- Comprehensive car insurance. Generally the highest level of cover, a comprehensive car insurance policy can cover damage caused to your car in an accident regardless of who was at fault. It also covers damages to other cars and property in motor vehicle accidents where you’re deemed at fault.
- Third Party Fire and Theft (TPFT). Typically covers damages you cause to other vehicles in car accidents, as well as your own car in cases of fire and theft.
- Third Party Property Damage (TPPD). This type of third-party insurance is the most basic form of cover. It usually provides financial cover when you damage someone else’s car in a motor vehicle accident.
Always read the Product Disclosure Statement (PDS) for more information on inclusions, exclusions, terms and conditions. The Target Market Determination (TMD) can also help you determine if the car insurance cover is suitable for you.
How much does car insurance cost for P-platers?
Car insurance for P-platers costs around $3,113.39 a year on average, according to Compare the Market quote data for a male in Qld between the ages of 17 and 19.12 However, this price can vary depending on the age of the driver, location and the type of licence the P-plater has (i.e. P1 or P2).
Other factors that your insurer may consider for your premiums include:
- the type of car insurance and any optional extras you add
- your driving record
- car make and model
- parking location
- how often and the distance you drive
- any modifications made to your car.
How can I get cheap car insurance as a P-plater?
A few ways P-platers can help reduce their car insurance premiums include paying annually, parking in a secure location and maintaining a clean driving record. Some insurers may also offer lower premiums if you increase the basic excess on your policy, but this will also increase the amount you’ll have to pay at claim time.
Here’s how the following may help you save money on your car insurance premiums:
- Parking your car in a secure location. Parking in a garage instead of on the street generally lowers your risk of making a claim.
- Driving less often. The less you’re on the road, the cheaper your car insurance premiums may be.
- Avoiding suspensions. Keeping a clean driving record can go a long way to making your car insurance premiums cheaper.
- Paying your premiums annually. Paying your premiums in instalments may attract additional fees that you could avoid by paying once a year.
- Paying more excess. Choosing to pay a higher excess in the event of an insurance claim could lower your premiums. However, it’s still important to select an affordable excess amount, as you may need to pay this amount if you need to make a claim.
Am I covered by my parents’ car insurance?
You can be covered by your parents’ car insurance policy, but only when you’re driving their motor vehicle. Your parents’ insurer may require them to list you as an additional driver on their policy. Some insurers may cover you if you aren’t listed on your parents’ policy, but they might charge an unlisted driver excess if you need to make a claim. Other additional excesses that may be applicable to your claim may include an age excess or an inexperienced driver excess.
While it might be cheaper for you to drive their car rather than having your own car and insurance, it might cost your parents more to have you on their policy, as young drivers are generally considered a higher insurance risk.
Can I insure my car under my parent’s name?
No, if you are the main driver of your car,it should generally be insured under your name. Listing a more experienced motorist as the main driver to get a cheaper policy is known as ‘fronting’. This could get you in trouble with your insurer and void your policy if you need to claim.
Meet our car insurance expert, Adrian Taylor
As a General Insurance expert with over 13 years’ experience in financial services, Adrian Taylor is passionate about demystifying car insurance for consumers, so they have a better understanding of what they’re covered for. Adrian’s goal is to make more information available from more insurers, to make it easier to compare and save.
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1 Queensland Government – Displaying P plates. Accessed May 2026.
2 Vic Roads – Displaying P plates. Accessed May 2026.
3 Queensland Government – P1 provisional licence. Accessed May 2026.
4 NSW Government – Provisional P1 licence. Accessed May 2026.
5 NSW Government – Provisional P2 licence. Accessed May 2026.
6 Vic Roads – Learner and probationary driver road rules. Accessed May 2026.
7 Government of South Australia – P1 provisional licence. Accessed May 2026.
8 Government of Western Australia Department of Transport – Driving on your P plates. Accessed May 2026.
9 Plates Plus Tasmania – Peer passenger restrictions factsheet. Accessed May 2026.
10 ACT Government City Services – Changes for learner drivers. Accessed May 2026.
11 Northern Territory Government – Get your driver licence. Accessed May 2026.
12 Based on average indicative comprehensive car insurance quotes available from Compare the Market on 21 May, 2026 . Quotes for a white 4-door 2026 Toyota Corolla driven 15,000 km on average per year by male drivers aged between 17-19 (17 year olds on a P1 licence, 18 and 19 year olds on a P2 licence), based in QLD 4051. We used a target excess of $900.