We present statistically robust observational evidence which imposes new limits on dynamo saturation in young solar-type stars. These are inferred from the increasing amplitude of the V-band optical flux with rotation, caused by the filling of the disc with surface spots in a non-axisymmetric pattern. Assuming spot coverage acts as a tracer of the total magnetic surface flux, we find a minimum saturation level between 6 - 10 times greater than the inferred from chromospheric and transition line indicators, assuming that saturation occurs. We suggest that these new limits imply a minimum rotation for saturation of the dynamo and that for high rotation rates starspot coverage acts as an alternative diagnostic for the stellar dynamo to the chromospheric and transition region line emission fluxes. The fact that the dynamo does not appear to saturate at the lower rotation rates indicated by chromospheric indicators should assist evolutionary braking models that have to explain the sudden spin-down of young fast rotating G-dwarfs.