Seniors car insurance

Driving into the golden years doesn't have to mean driving up your car insurance premiums. If you're over 60 and on the hunt for a more wallet-friendly policy, we've got your back. We've sifted through the details to bring you insights into securing affordable car insurance tailored to seniors.

‘Seniors car insurance’ is a bit of a misnomer, as there's nothing fundamentally different between a policy taken out by a senior and a similar policy taken out by someone younger. The distinction often comes down to marketing and the potential for added benefits or discounts tailored to seniors, rather than any difference in the coverage itself.

For example, insurance companies like Australian Seniors, APIA and National Seniors are exclusively marketed to seniors, while QBE and RAA are marketed to a wider audience but offer special discounts to seniors.

That said, you’re definitely not limited to any of these. You’re more than welcome to shop around and go with any other insurance company you choose. 

The best car insurance for one senior isn't necessarily the best for another, given everyone’s varied needs and preferences. However, some policies clearly stand out at a broad level. 

Budget Direct, for example, has won top spot for Exceptional Value Senior Driver Insurance in the Mozo Experts Choice Awards after our experts reviewed thousands of quotes for drivers over 55.

So without further ado, let’s look at our top seniors car insurance policies for value and features.

Understanding your options is key to finding the right car insurance policy. Beyond the appeal of senior-specific marketing, there are several factors to consider ensuring you get the coverage that suits you best. Here are some tips to help you weigh those considerations effectively:

• Look beyond age-specific brands. Don't restrict your search to insurers that market exclusively to seniors. Coverage that fits your needs can come from any provider, regardless of their target demographic.
• Value over marketing. It's the policy details, not the branding, that matter. Whether it's from a company known for catering to seniors or a broader insurer offering a senior discount, the best policy for you is one that offers the best value and meets your specific needs.
• Explore discounts. Many insurers appreciate the experience and lower risk often associated with senior drivers, offering discounts or rewards. Brands like QBE and RAA are known for providing financial benefits that can make their policies particularly attractive to seniors.
• Comprehensive comparison. Always compare a wide range of options. Whether considering specialised insurers for seniors or more general offerings, a thorough comparison ensures you find a policy that provides the coverage you need at a price that fits your budget.

By focusing on the essentials of what makes a policy suitable for you and considering a broad spectrum of insurers, you ensure the choice you make is informed by value, coverage, and how well it suits your lifestyle, rather than by marketing strategies targeting seniors.

No matter your age, discounts can be a great way to reduce your car insurance premium. Some insurance providers even offer discounts for seniors or certain age groups, so be sure to keep your eyes peeled for those.

• Senior/pensioner discount. Discounts exist in the market for seniors or pensioners who can demonstrate a good driving record.
• Online discount. Don’t let your grandchildren have all of the online fun. Seniors, like many Aussies, are able to nab a discount on their car insurance premium simply by taking out a policy online rather than in-branch or over the phone.
• No claims bonus. Years and years on the road has afforded you the opportunity to build up quite the no claims bonus which is perhaps the most popular way to slash car insurance costs. The good news is that your claimless years are transferable between providers, so don’t be afraid to shop them around.
• Drive less discount. Your days of driving to work and back five times a week or shuttling the kids to and from school are over so you might be driving a lot less nowadays - why not save some money on your car insurance premium by restricting your mileage. You could even opt for a specific pay as you drive car insurance policy.
• Family discount. For years your children have leached off you, but now it’s your turn to get a little something back. If your children or partner has a policy with a particular provider, it is worth seeing what kind of discount is available to you for going with that same insurance provider.

Car insurance providers take into consideration a range of factors when calculating the premium you pay, including age. 

According to the Mozo Car Insurance Report 2023, older drivers tend to pay less per year than younger drivers, with those over 70 paying an average of $1,051. Car insurance for younger drivers, specifically for those under 20, was $2,855 per year on average. 

Of course, age is only one factor a provider will look at. Another big one is your driving history.

Not really – both of these terms are used to describe insurance policies aimed at drivers over a certain age. It just so happens some people over the age of 60 are receiving the Age Pension. Generally, qualifying for discounts or tailored policies for older drivers isn't impacted if you're on the government pension or if you're a self-funded retiree.

Some of the terms that may mean the same thing as 'pensioner' in car insurance include:

• over 50s
• 50+
• senior
• older Australians
• mature Australians

Another important question you might have as a senior comparing various car insurance policies is whether it is worth agreeing a value for your car or just opting for the market valuation that is usually the norm. Coming to an agreed value with your provider ensures that you’ll get a fixed, predetermined sum of money for your prized possession should it be written off. Comparatively, choosing a market valuation means you’ll be paid whatever a car of the same make and model and similar mileage would have fetched on the open market at the time of the accident.

But which should you opt for? While coming to an agreed value for your car may result in a bump in your premium (and not all providers give you this option) it is a good choice for pensioners or seniors who now have a restricted income and value the peace of mind that comes with knowing exactly how much money they’ll have to replace their recently written off vehicle should the worst happen.

Lastly, you might be wondering if your grandchildren can take your car out for a spin. The answer to this is usually yes, unless you have restricted the age of drivers on your insurance for a reduced premium. In this case, depending on how old your children or grandchildren are, they may not be insured to drive your car.

You can also list your children or grandchildren as nominated drivers, that way they will benefit from a similar level of cover to you. If they are under 25 then this will most likely up the cost of your insurance premium. However, if they aren’t listed then the amount of cover they receive should anything happen will be restricted.