Car insurance for seniors and pensioners

The premiums you pay for car insurance typically depend on a range of factors, including your age, vehicle type, location and driving history. However, seniors can be in something of a unique position when it comes to car insurance premiums.

On one hand, seniors tend to bring a wealth of driving experience to the road, and may be less likely to take risks behind the wheel than younger drivers. Both factors can help to lower car insurance premiums.

On the other hand, the ageing process can slow response times. Seniors can be more prone to medical conditions that can impact driving judgement, and the medication required to manage some health conditions can also affect driving ability.

The upshot is that for much of our adult life, car insurance premiums may hold fairly steady or even decline as we get older (all other things being equal). However, the jury is out as to whether seniors car insurance comes with considerably higher premiums.

From age 65, seniors may find the premium for their car cover starts to increase. That said, insurer AAMI says it’s a common misconception that getting older means having to pay more for car insurance. This highlights the importance of shopping around for seniors car insurance – and exploring different strategies that can help you save on premiums.

While all car insurance providers typically offer cover for older drivers, some providers offer policies specifically targeted at senior drivers, including:

• APIA
• Australian Seniors Insurance Agency
• National Seniors.

Remember though, the key is to compare premiums across a number of insurance providers to know which provider offers the most competitive premiums, flexible features or combination of the two. You can use the table above to see and compare a list of car insurance providers that may suit your needs.

If you are a senior and/or pensioner, you may be living on a fixed income. So it can make good financial sense to look for ways to save on car cover without scrimping on the level of cover you purchase.

Fortunately, there is a variety of steps seniors can take to access discounts available to older drivers, such as Seniors Card scheme participant perks, driving record rewards, no-claim bonuses, and other provider-specific programs.

Here are eight ways drivers may be able to save on seniors car insurance.

1. Check if you are eligible for any discounts

Some insurers may offer senior-specific reductions, multi-policy offers, or online discounts for customers.

2. Limit younger drivers

One way drivers of any age, including seniors, can often save on car insurance is by limiting the number – and age – of other drivers listed on their insurance policy. This can especially be the case if you are considering whether to add a driver aged under 25 to your policy. Of course, bear in mind that if you let someone who isn’t listed on your policy drive your car, you may have to pay a higher excess should they have an accident.

3. Park securely

You may be able to save on premiums if you park your car in a secure location, such as in a garage, carport or secure apartment car park, rather than on the street.

4. Let your insurer know if your driving habits have changed

If you have retired from the workforce, it can be worth letting your insurance provider know. If retirement means you drive fewer kilometres each year, particularly in peak hour traffic, you may be eligible for savings on car insurance.

5. Check whether a no-claim bonus applies

Some insurers offer no-claim bonuses or discounts that are designed to reward drivers who do not claim on their insurance. These typically increase each year you don’t make a claim, up to a maximum number of years.

6. Install anti-theft devices

Some insurers may reward drivers with cheaper premiums if they install devices such as car alarms, dash cams, immobilisers or tracking devices.

7. Increase your car insurance excess

Increasing your excess could help bring your premiums down. However, doing so will mean you’ll have to pay more if you need to make a claim on your car insurance. So, be sure you could comfortably afford to pay the excess at claim time.

8. Speak with your insurer about the discounts that may apply to you

Any steps you have taken to improve your driving skills, such as completing a safe driver course, could see you rewarded with a lower premium.

Bear in mind that this is not an exhaustive list, but also that the discounts available to you can vary widely depending on the insurer and policy you choose. This means that before committing to a policy, it’s important to read the product disclosure statement (PDS) and other documentation carefully or check with your provider to find out what discounts it may be able to offer you.