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Written by
Francis Taylor
Edited by
Angela PhungHaving silver hair might have a silver lining. If you’re over 50 with a good driving history, you may find more competitive car insurance rates compared to some younger drivers.
Just about every insurer offers Car Insurance to seniors, and in some cases at a cheaper premium because ultimately, seniors can generally be safe, low-risk customers. There are, however, some companies that specialise in insuring well-seasoned drivers.
No claims discount
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Listed drivers
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Garage your car
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Low mileage
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No matter your age, experience, or driving history, you’ll generally still have access to the same four types of insurance policy as all drivers. Here’s a quick refresher on what each covers.
|
Car insurance type |
Damage to your car |
Damage to another person’s car or property |
Damage or loss caused by theft |
Injuries or death to others in an accident |
|
CTP |
No |
No |
No |
Yes |
|
Third Party property |
No |
Yes |
No |
No (but covered by CTP) |
|
Third Party Fire and Theft |
No |
Yes |
Yes |
No (but covered by CTP) |
|
Comprehensive |
Yes |
Yes |
Yes |
No (but covered by CTP) |
CTP is mandatory insurance for every driver in Australia and 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.
The next is Third Party Property Insurance. 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 this insurance out, you would be responsible for the costs of replacing or repairing your own car in the event of an accident.
Third Party Fire and Theft Insurance helps cover third party property damage as above, but also includes damage to your car because of fire or theft. Remember, this option still doesn’t cover damage caused to your car in an at-fault accident or for most possible incidents.
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 hail or storm damage. A Comprehensive policy often comes with options to add extras to your cover, like a hire car or Roadside Assistance and Personal Effects Cover. These options vary between providers and some may be covered in the original premium, so it’s always worth checking out.
As a senior driver, you’ll likely face licensing restrictions depending on which state you live in. These requirements can also change, so it’s a good idea to check the current laws in your state before taking out car insurance.
We’ve also included a breakdown below of the restrictions by state.
Queensland
QLD has a strict requirement that every driver 75 and over needs to carry a ‘medical certificate for motor vehicle driver’ form whenever they drive1. Drivers face fines if they don’t present it when asked.
The form:
New South Wales
In NSW, the following regulations apply2:
Australian Capital Territory
In the ACT, drivers 75 and over must have an annual medical assessment. Drivers must legally report any medical condition that may affect their driving3.
Victoria
While there is no requirement for senior drivers to pass regular medical assessments in Victoria, you must legally tell VicRoads about any conditions that could affect your driving as soon as possible4. You may then be required to attend regular medical assessments.
Tasmania
The Tasmanian government recognises the importance of maintaining a driver’s licence as you get older, so they have minimal rules in place for senior drivers5:
South Australia
Seniors in South Australia are not required to pass an annual medical test, unless they have a known medical condition that needs to be regularly assessed6.
Instead, drivers 75 and over must complete a self-assessment form every year. If they answer yes to any questions, they must complete the assessment with a doctor. Senior drivers must only take a practical driving test if recommended to do so by a doctor.
Western Australia
In WA, senior drivers over 80 must7:
Drivers 85 years or over will also need to take the practical driving assessment every year8.
Northern Territory
In the NT, drivers are expected to self-assess their driving ability9. However, doctors are legally required to tell the Registrar of Motor Vehicles if they have assessed someone as unfit to drive.
Sources:
1. Queensland Government - Senior Drivers | Safe Driving
2. NSW Government - Your licence from Age 70
3. ACT Government | Access Canberra - ACT driver licence information
4. Vicroads - How ageing can affect driving
5. Tasmanian Government | Transport Services - Driving as you age
6. My Licence - The Driver's Handbook | Fitness to Drive
7. Government of Western Australia | Department of Transport - Renew my driver's licence (seniors 80-84)
8. Government of Western Australia | Department of Transport - Renew my driver's licence (seniors 85+)
9. Northern Territory Government - Medical fitness to Drive
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.
Often there can be a trade off between the cost of the policy and the coverage it provides, including optional extras. The right balance can depend on your budget, your personal circumstances and the level of risk you want to protect yourself against.
Some policies offer discounts for drivers who meet certain conditions. Depending on your policy, you might be eligible for any of the following discounts below.
No Claims Discount
This is essentially a reward for safe drivers. If you haven’t made a claim in a long time, then insurers will likely see you as a low-risk driver, and they might be willing to reduce your premium as a result.
It usually only applies to Comprehensive car insurance policies and is calculated based1 on the following:
The discount typically increases every year that you hold onto your policy and don’t make a claim (up to a maximum of five years)1.
Multi-policy Discount
Do you already have a health or contents insurance policy with an insurer? Or maybe you already have Compulsory Third Party Insurance (CTP) with your insurer and you’re looking to get Comprehensive cover as well? 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. Even if you can’t get a discount on your car insurance, you might still be able to get a discount on one of the other insurance policies you hold3.
Online Discount
In the digital age, it pays to do your business online. Many2 insurers4 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.
Sources:
1. Moneysmart - No claim bonus on car insurance
2. Budget Direct - How to Save on Car Insurance
3. Budget Direct - Health Insurance | Multi-Policy Discount
4. ING - Car Insurance
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 actions 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 when you make a claim. A higher excess means the insurer ends up paying less, and because this reduces their risk, it usually translates into lower premiums. Just keep in mind what you’re willing to pay when selecting an excess—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 overall1.
Keep your car safe
If your car is equipped with a security device, like an alarm or an immobiliser, or if you keep your car parked overnight in the garage (instead of on the street), then your insurer might be willing to reduce your premiums1.
Consider market value cover
With Comprehensive Car Insurance, there’s 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 ever written off or stolen. On the other hand, market value cover is generally cheaper, but it will only cover you for the price of your car on the market at the time of the claim2.
Low Kilometre Policies
Drivers who don’t use their car all that much might also be regarded as a low risk for insurers3. You might be able to reduce your premium if you only drive a limited number of kilometres, but this is something you’ll usually have to discuss with your insurer.
Alternatively, some insurers will offer specific, lower premium policies for drivers with low mileage. Budget Direct, for example, offers a ‘Gold Low Kilometres Comprehensive policy’ for people who drive less than 10,000km per year4.
Restricting Drivers
Some insurers will also offer a lower premium if you restrict your policy to drivers of a certain age. For instance, the insurers at Retirease can reduce your premium if nobody under 25 drives your car5.
This is because young drivers are statistically more likely to get involved in road accidents, so a policy that omits such drivers is going to pose a much lower risk for insurers6.
Sources:
1. Budget Direct - How Much Does Car Insurance Cost?
2. Moneysmart - Choosing Car Insurance
3. Budget Direct - How to Save on Car Insurance
4. Budget Direct - Car Insurance FAQs | Insuring Your Car
5. Retirease Insurance - Car Insurance Quote
6. PD Insurance - Car Insurance For Young Drivers
Insurers calculate premiums based on risk1. And, because older drivers tend to be over-represented in road accidents2 (much like younger drivers), they may attract higher premiums as a result.
However, age is not the only factor used to calculate premiums. You may be able to delay premium increases if you have a safe driving record and maintain good health. It’s also a good idea to review your car insurance to make sure your premiums aren’t unnecessarily high. You may not be receiving all the benefits you could be, or you may find that another insurer offers a better deal.
Sources:
1. Moneysmart - Choosing Car Insurance
2. Transport Accident Commision - Older People
A ‘pay as you drive’ policy bases your premiums on how much—or how little—you drive. Depending on your insurer, you might be able to designate how many kilometres you plan to travel each year and receive a quote based on this amount1.
These policies may be especially suitable for people who don’t drive all that much. However, you might want to ask your insurer if the kilometre limits are adjustable—just in case you ever go over them.
Source:
1. Money Magazine - Can pay as you drive car insurance save you money
If you get into a car accident with another driver where they are the ones at fault, then their Compulsory Third Party Insurance (CTP) will cover the medical expenses for your injuries.
It is also mandatory for every driver in Australia to hold some form of CTP cover1.
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 car. They are not intended to cover the policy holder’s medical expenses2.
In these situations, you will either need to rely on the public health system to treat you, or a private health insurance policy to cover your medical expenses2.
Sources:
1. ACT Government | ACT CTP Regulator - Frequently Asked Questions: Compulsory Third-Party Insurance in the ACT (Page 1)
2. Budget Direct - What Car Insurance Covers
