Car insurance for seniors and pensioners
Are you over 60 and looking to take out comprehensive car insurance or review your current policy? To help you find cover that is right for you, Canstar looks at car insurance for seniors – who offers it, what to be aware of, and ways to save.
What are the rules for seniors having a driver’s licence?
For many seniors, a car is more than just a convenience, it also provides valuable independence. But can seniors continue to drive past a certain age?
In some states and territories, specific rules apply to seniors renewing their driver’s licence. Here’s a quick round-up of the requirements around the country at the time of writing:
- NSW – From age 75, an annual medical assessment is required to renew your licence. From age 85, you must also pass an on-road driving assessment every two years.
- ACT – Drivers are required to have a medical test each year from age 75.
- QLD – From age 75 you will need a medical certificate to drive. These medical certificates are valid for a maximum of 13 months, and you must be reassessed and obtain another certificate before your current one expires if you wish to continue driving.
- VIC – Seniors are responsible for assessing their own ability to drive safely as they age, and must notify VicRoads if they develop a medical condition or disability that could affect their driving.
- TAS – Seniors in Tassie are not required to undergo medical checks to renew a licence unless they experience illness or a disability.
- SA – Drivers are required to complete a compulsory self-assessment every year from age 75.
- WA – From age 80, seniors must have an annual medical assessment to renew their licence. As part of this process, your doctor may also recommend you undergo a practical driving assessment.
- NT – All NT drivers are required to pass a vision test every five years. Any additional medical assessment may only be required if you declare a disability or medical condition that may affect your driving.
Do seniors pay more for car insurance?
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.
However, 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.
Ways to save on seniors car insurance
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.
Car insurance policies dedicated to seniors
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.
Cheapest isn’t always best
While price is an important factor in selecting a car insurance policy, it isn’t usually wise to choose a policy simply because it offers the cheapest annual premium.
It can be a good idea to read the PDS of any insurance product you are considering to understand the cover on offer and whether it will meet your needs.
Car insurance policies for seniors on Canstar’s database
To find the best seniors car insurance to suit your circumstance, it could be a good idea to compare policies.
Each state and territory in Australia differs slightly when it comes to car insurance offerings. For this reason, Canstar’s Car Insurance Star Ratings and Awards consider products within each state and territory. To help you find a policy that may suit your needs as a senior driver, you can use our comparison table to see a list of policies in our database. You can filter the results based on factors like your age, location, gender and whether you will have an extra driver under 25 listed on your policy.
Compare Car Insurance with Canstar
If you’re comparing car insurance policies, the comparison table below displays some of the policies currently available on Canstar’s database for a 60+ year old male seeking comprehensive cover in Victoria without cover for an extra driver under 25. Please note the table is sorted by Star Rating (highest to lowest) followed by provider name (alphabetical) and features links direct to the providers’ websites. Consider the Product Disclosure Statement (PDS) and Target Market Determination (TMD), before making a purchase decision. Contact the product issuer directly for a copy of the PDS and TMD. Use Canstar’s car insurance comparison selector to view a wider range of policies. Canstar may earn a fee for referrals.
Products displayed above that are not “Sponsored or Promoted” are sorted by Canstar’s Star Rating and then alphabetically by company. Canstar may receive a fee for referral of leads from these products. See How We Get Paid for further information. If you decide to apply for car insurance, you will deal directly with an insurance provider, and not with Canstar.
Consider the provider’s detailed product and pricing information before making a decision to purchase a policy. The products displayed on this page do not include all providers and may not compare all features relevant to you. View the Canstar Car Insurance Star Ratings Methodology and Report. The rating shown is only one factor to take into account when considering products.
Cover image source: Sabrina Bracher/Shutterstock.com.
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This article was reviewed by our Sub Editor Tom Letts before it was updated, as part of our fact-checking process.
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