Compare Car Insurance for Seniors

No matter your age, experience, or driving history, you’ll generally still have access to the same four types of insurance policies as all drivers. Here’s a quick refresher on what each covers.

Compulsory third party (CTP)

CTP is mandatory insurance for every driver in Australia. In some states, it’s paid automatically whenever you register your car. It helps cover accidental injury or death to another person caused by your driving.

Third-party property

The next is third-party property. As the name suggests, this helps cover damage to other people’s vehicles and property caused by an accident that was your fault. It generally doesn’t cover damages to your car or property, though. If you take out this level of insurance, you would be responsible for the costs of replacing or repairing your own car in the event of an accident.

Third-party property, fire, and theft

Third-party property, fire, and theft helps cover third-party property damage as with third-party property insurance, but also includes damage to your car because of fire or loss due to theft. Remember, this option still doesn’t cover damage you cause to your own car.

Comprehensive

The highest cover available is comprehensive car insurance. Whether an accident is your fault or not, a comprehensive policy can help cover damage to other people’s property and vehicles, as well as your own.

In many cases, it may also cover events like vandalism or storm damage. A comprehensive policy often comes with options to add extras to your cover, such as a hire car or your choice of repairer. These options vary between providers and some may be covered in the original premium, while some may come at an extra cost, so it’s always worth checking out.

Different people have different needs. A car insurance policy that works for someone else might not necessarily work for you. This is why no one policy can reasonably be called ‘the best’ for seniors or pensioners.

As an older driver, you may tend to get behind the wheel less frequently and drive smaller distances than, say, a middle-aged parent chauffeuring the kids to school and back, or a younger driver and their frequent interstate road trips.

Keeping this in mind, older drivers might opt for a bit of flexibility, ease of use, and extra coverage to suit their needs. Things such as:

• Pay as you drive: Watch that odometer. Insurers can offer reduced premiums for motorists who drive their car within a certain number of kilometres a year.
• Hassle-free support: Consider an insurer that prioritises customer support so you don’t end up on the phone chasing claims.
• Tailor-made coverage: Roadside assistance, excess-free windscreen, and hire car cover are some additional benefits that can help take the worry out of sticky motoring situations.

If your coverage doesn’t tick these boxes, you might want to check with your insurer to see if some of them can be added on. While you’re at it, you could also compare car insurance policies to make sure you’re paying for coverage that’s suited to your needs.

Insurers can offer discounts for drivers who meet certain conditions. Depending on your policy, you might be eligible for any of the following discounts below.

Seniors Card holder discount

They don’t call them the golden years for nothing! If you let your insurer know that you hold a valid Seniors Card, you could get a discount applied to your car insurance premium. It’s worth noting that the discount may not apply to optional services like roadside assistance.

Loyalty rewards

It pays to be loyal, or in this case, you pay less if you’re loyal. Some insurers might reward you with a discount on your premium if you’re a long-standing policy holder.

Multi-policy discount

Do you already have a health or home and contents insurance policy with an insurer? You might be eligible for a multi-policy discount.

Not all insurers offer a discount for holding multiple policies, but it’s still worth asking if such discounts are available. Your insurer might offer you a discount on car insurance if you hold other insurance policies with them.

Online discount

You can find nearly everything online these days, including discounts on car insurance! Many insurers offer a noticeable discount for customers who purchase their policy online. Usually, this will be front and centre on their website – often on the car insurance product page – if the insurer offers the discount.

Taking advantage of discounts isn’t the only way to save. There are a number of features on your policy you might be able to adjust, or steps you can take, to keep your insurance premiums low.

Adjust your excess

Your excess is how much you’ll end up paying out-of-pocket if you make a claim. A higher excess means the insurer ends up paying less towards the claim. And because this reduces their risk, it usually translates to lower premiums. When selecting an excess, just have a think about what you’re willing to pay should you have an accident. It’s always prudent to settle on something you’re confident that you can afford.

Pay annual premiums

Paying your premium in annual instalments instead of monthly ones is usually cheaper overall.

Keep your car safe

If your car is equipped with a security device, like an alarm or GPS tracking device, or if you keep your car parked overnight in a secure garage (instead of on the street), then your insurer might be willing to reduce your premiums.

Consider market value vs agreed value

With comprehensive car insurance, there are two value types you can choose from: agreed and market value.

With agreed value cover, you’ll receive a fixed sum for your claim if your car is written off or stolen. This usually suits when you’re insuring a newer car and want to protect it from financial depreciation – like a spanking new Subaru that starts losing value as soon as you drive it out of the dealership.

On the other hand, market value cover is generally cheaper, but it will only cover you for the current market price of your car at the time of the claim. This option is ideal if you own an older car that’s already depreciated in value; think an old faithful Falcon that has seen better days.

Look into low-kilometre policies

Insurers might consider drivers who don’t use their car all that much as a lower risk. So, you might be able to reduce your premium if you only drive a limited number of kilometres during the policy term. But this is something you’ll usually have to discuss with your insurer. These policies are sometimes called a pay as you drive or low-kilometre policy, but you’ll need to make sure your odometer doesn’t tick over of the insurer’s kilometre-limit to be eligible for the lower premium.

Restrict the age of drivers

Some insurers will offer a lower premium if you restrict your policy’s coverage to drivers above a certain age.

This is because younger drivers are statistically more likely to get involved in road accidents. So a policy that restricts such drivers is going to pose a much lower risk for insurers.

Depending on who you’re insured with, you could be covered up to the age of 99. But keep in mind as you get older, you will have to meet certain criteria before you’re deemed fit to drive.

The cut-off for insurable age could vary from insurer to insurer. Other factors could come into play, too, such as an age limit for people driving certain kinds of vehicles.

An octogenarian riding a Harley might be one of the coolest sights on the planet, but insurance providers have their own way of looking at it.

It’s best to check with your insurer of choice as to what they consider to be their maximum insurable age.

A pay as you drive policy bases your premiums on how much – or rather how little – you drive. How it typically works is an insurer will offer you a reduced premium if you agree to drive within a set amount of kilometres (say 10,000 km) over the year that makes up the policy term.

A pay as you drive or low-kilometre policy may suit someone who doesn’t drive all that much. However, you might want to ask your insurer how it works if you want to extend the kilometre limit – just in case you go over.

If you get into a car accident with another driver where they are the ones at fault, then their compulsory third-party (CTP) insurance will cover the medical expenses for your injuries.

It’s mandatory for every registered vehicle in Australia to hold CTP cover.

If you are at fault for the accident, or if nobody is at fault, then your car insurance policy is unlikely to cover your medical expenses. Car insurance policies either cover damage done to another driver’s car, person or property, or your own car. They are not intended to cover the policy holder’s medical expenses.

In these situations, you will either need to rely on the public health system to treat you, or take out a private health insurance policy to cover your medical expenses.