Senior drivers can choose from third-party property, third-party property, fire and theft, and comprehensive cover. Some insurers offer age-based discounts or tailored cover options for older drivers. No matter your age, experience, or driving history, you’ll generally still have access to the same 3 types of insurance policies as all drivers. Here’s a quick refresher on what each covers.

Third-party property

Third-party property covers damage to other people’s vehicles and property caused by an accident that was the policyholder’s fault. It generally doesn’t cover damages to the policyholder’s car or property. 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.

A third-party property policy can sometimes cover accidental damage to your car up to a certain limit, if the damage was caused by an uninsured motorist. It’s also generally the cheapest level of car insurance available as it offers the least amount of cover.

Third-party property, fire, and theft

Third-party property, fire and theft car insurance cover third-party property damage as with third-party property insurance, but also includes cover the policyholder’s car for damage caused by fire or for loss due to theft. Remember, this option still doesn’t cover damage you cause to your own car.

A third-party property, fire and theft policy is considered as mid-tier car insurance because of the added level of cover it offers and its cost, which is somewhere between what you’d pay for third-party property and comprehensive cover.

Comprehensive

Comprehensive car insurance is the highest level of cover available. 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 car. It’s also the only type of car insurance that can cover events like vandalism or storm damage.

A comprehensive car insurance 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.

There isn’t a best car insurance policy or provider for senior drivers. A person’s car insurance needs depend on the type of car they’re insuring, how much they drive, the level of cover they’re after and their budget. So, a car insurance policy that’s the best fit 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 get behind the wheel less often and drive smaller distances than, say, a middle-aged parent chauffeuring the kids to school and back or a younger driver making 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: 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.
• New car replacement: If you buy a brand-new car, new car replacement cover can replace it with a like for like or similar model if it became a total loss within a certain timeframe or distance travelled since the day you purchased it.

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.

Yes, there are some car insurance discounts available for senior drivers and there are insurers that offer them for drivers who meet certain conditions, such as holding a Seniors Card or multiple policies with the same insurer and for a longer term. Regardless of your age, you can also access discounts on some policies if you can buy them online.

Depending on your policy, you might be eligible for any of the following discounts below.

Seniors Card holder discount

Some specialist insurers offer discounts to Seniors Card holders. You’ll need to let your insurer know that you hold a valid Seniors Card to 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.

Note: A Pensioner Concession Card (PCC) is unlikely to fetch you a discount on car insurance, but depending on where you live your transport authority may offer you a discount on your compulsory third-party (CTP) insurance premium or even waive your rego if you have a PCC.

Multi-policy discount

Taking out multiple policies with an insurer can make it possible for you to get a multi-policy discount, if it’s something the insurer offers. For example, if you also take out health or home and contents insurance with your car insurance provider, it can open the door to 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. An insurer might offer you a discount on car insurance if you hold other insurance policies with them.

Online discount

Many insurers offer a discount for customers who purchase their policy online. If the insurer offers an online discount, it will likely be front and centre on their website – often on the car insurance product page.

Senior drivers can help reduce their car insurance premiums by lowering the overall risk they pose to an insurer. Paying a higher excess or annual premiums, taking measures to prevent your car from being stolen and tailoring your policy to make it less of a risk for your insurer to cover you are some ways to lower your risk.

Adjust your excess

Paying a higher excess typically lowers your premium because doing so reduces your risk to your insurer. When selecting an excess, 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 works out cheaper overall with most insurers and policies.

Keep your car safe

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 over agreed value cover

Market value cover is generally cheaper as it covers 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. 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, but this type of cover comes at a higher price.

You usually get to choose between agreed and market value only if you take out comprehensive car insurance.

Look into low-kilometre policies

A low-kilometre policy rewards drivers with a lower premium for driving less over the policy term. So, if you don’t drive your car often, a low-kilometre policy is worth considering.

Such policies also go by pay as you drive or drive less pay less, but you’ll need to make sure your odometer doesn’t tick over the limit specified by the insurer to avoid paying any additional excesses.

Restrict the age of drivers

Insurers typically 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 poses a lower risk for insurers.

Yes, car insurance can have age restrictions. 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.

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

Pay as you drive car insurance is a type of policy model that bases your premium on the number of kilometres you drive over the policy term. How it works is that an insurer offers you a reduced premium if you agree to drive within a set amount of kilometres over the year that makes up the policy term.

So, if you’re a senior or pensioner and you don’t drive all that much, a pay as you drive or low-kilometre policy can be a great option if you want to help save on your car insurance costs. If you’re keen on a pay as you drive policy, it might be a good idea to ask your insurer how things work if you want to extend the kilometre limit or if there are any additional excesses involved if you go over the kilometre limit.

No, car insurance cannot cover medical expenses related to a motor accident. Car insurance policies cover your legal liability for damage to vehicles and property, things like towing costs, emergency repairs and optional extras where applicable. They are not designed to cover expenses related to personal injury or even death caused by an accident.

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