Car insurance for over 50s – how much can you save?

KELLY STONE
Finance Writer · 21 July 2021
In your nifty fifties? It could be a good time to review your car insurance policy and find a provider that rewards your good driving history and experience with lower premiums.

Who wouldn’t want to save money and be rewarded for decades of being a great driver? While the overall cost of car insurance varies based on the vehicle, insurance type and the driver’s details, there are several insurers around rewarding over 50s with lower premiums.

Once you work out which level of coverage is appropriate for your needs, you can start comparing your options for a better deal. The four main categories of car insurance available to Australian consumers are:

  • Comprehensive car insurance
  • Compulsory Third Party (CTP) insurance / Green Slip insurance (mandatory)
  • Third party, fire and theft cover
  • Third party property damage

In this guide, we explore:

Is over 50s car insurance the same as seniors car insurance?

In short, no, seniors car insurance is not technically the same as over 50s car insurance. While the product / coverage provided remains the same, generally, the costs can differ between the policies.

People aged between 50 and 60 tend to pay lower premiums, while seniors aged 60+ can pay more given this age group is statistically more prone to more health problems that could affect their driving ability, such as:

  • impaired hearing and vision
  • slower reaction times
  • physical problems like arthritis and heart issues
  • use of prescription medicines.

Generally, premiums start to rise once you reach 60 as insurers tend to spend more on claims from older drivers. There are some providers that offer specialised policies for seniors, such as:

Is car insurance cheaper for over 50s?

Generally speaking, car insurance can be cheaper for over 50s. Here are a few reasons why over 50s may be able to access cheaper car insurance:

  • Their driving experience. Drivers over 50 have probably notched up a few good years of driving experience. Much like how drivers under 25 get charged higher excesses for their inexperience, the over 50s can expect some insurers to reward their maturity and driving experience.
  • No claims discount. If you’ve had a good driving history, you may have earned a no claims discount that lowers your premium.
  • Restricted driver option. Some insurers offer a discount if the car insurance policy is restricted to drivers over 50 years of age.

While price is an important factor in selecting a car insurance policy, a cheaper premium shouldn’t be the only factor. It can be a good idea to read the product disclosure statement (PDS) of the insurance products you may be considering to understand the cover on offer and whether it will meet your needs.

How much can be saved on car insurance with a restricted driver age?

The average saving will vary based on the state or territory your car is registered and insured in, but for a comprehensive car insurance policy, the saving could be around $1,000.

For example, in New South Wales, the average premium for a driver aged over 50 is $991. In comparison, the average premium for a family with a young driver is $2,329.

In a different state? Canstar pulled the data so you can compare the average cost of comprehensive car insurance premiums across the different states in Australia, broken down by various driver age profiles.

There are a few other ways you may be able to reduce the cost of your over 50 car insurance, such as:

  • Increasing your excess. Choosing to pay a higher excess when making a claim reduces the cost of your premium. However, make sure you’re able to pay the higher excess amount if needed.
  • Pay as you drive policies / limited use discounts. If you’re not driving frequently, you might like to explore a ‘low mileage’ policy where you set a limit on the number of kilometres you drive in a year.
  • Purchasing cover online. Some insurers offer a discount if you purchase your car insurance via their website.

Bear in mind that these methods are lender-specific, so you’ll need to research and compare offers for the best deal.

Who has the best car insurance for over 50s?

What can be considered the best car insurance for over 50s will depend entirely on your needs and circumstances. To help you figure it out, we’ve compiled a list of highly rated products based on Canstar’s Car Insurance Star Ratings.

Is it best to go with a specialist senior insurer?

It’s not necessary for drivers who are aged between 50 and 59 to go with a specialist senior insurer, as their coverage is generally the same as a regular car insurance provider.

However, there are two possible reasons why a specialist senior insurer could be a better option for you:

  1. You’re having difficulty getting insurance due to a health condition.
  2. You’ve found an insurer providing bonus discounts on everyday items like groceries, fuel and travel.

You may like to research and shop around for products, rates and bonuses that may better suit your needs and circumstances. You could find there are savings and benefits that make comparing car insurance worthwhile.

Cover image source: kurhan/Shutterstock.com


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This content was reviewed by Finance and Lifestyle Editor