Seniors car insurance comparison checklist

While it is true that car insurance premiums are generally higher for younger drivers, premiums don’t necessarily drop as you get older. Just as insurers take into account statistics on reckless behaviour for drivers under 25, they also look at data and research on slower reaction times and health problems that may affect performance for drivers over 60.

In fact, if you’re not careful you could be singing ‘I’ll be paying higher car insurance premiums, when I’m 64!’ and let’s face it, that’s not very catchy. Here at Mozo, we think Aussie seniors should be rewarded for their wealth of driving wisdom with a more competitively priced, comprehensive car insurance policy that suits their lifestyle.

Of course shopping around for a policy with all the right cover for you is a must at any age. You can start by having a gander at the offers below and once you’ve trawled through them, keep scrolling for more important information on driving and taking out car insurance as a wiser and older Aussie.

What are the licensing rules for seniors in Australia?

First things first, when you’re on the hunt for a new car insurance policy as a senior, you’ll need to find out what the laws are for older drivers in your state or territory. These are subject to change at any time so it is important to check your local government’s transport laws before getting behind the wheel. At the time of writing the rules were as follows.

Australian Capital Territory

To keep your driver’s license, when you turn 75 in the ACT you will have to provide a medical report from a GP to the Road Transport Authority. You will have to do this yearly, for as long as you carry on driving.

New South Wales

In New South Wales, if you’re aged between 75 and 79 you’ll need to have a medical review every year to hold onto your licence. For ages 80 to 84 you will still have to have a medical each year, but you may also have to pass a practical driving test, depending on what kind of licence you hold.

At age 85 and older, you will need to have a medical review every year and either pass a practical test to keep your unrestricted licence or take out a modified licence.

Northern Territory

Senior drivers in the Northern Territory are encouraged to disclose any medical conditions that may affect their driving.

Queensland

In Queensland, once you turn 75 you will have to carry a valid medical certificate with you when you drive. This certificate must be issued by a doctor and show that you have been assessed as medically fit to drive. Your medical certificate will be valid for a maximum of 13 months and you will have to make sure that it is always in date.

South Australia

Drivers with a class C licence aged 75 and older will be sent a self-assessment form by the state government in South Australia. If your doctor thinks it necessary, you will have to pass a 30-minute practical driving test.

From age 85, drivers with any other licence than a class C will have to pass a practical driving test every year.

Tasmania

The Tasmanian government asks that, as you get older, you continue to assess your driving abilities. On the Tasmanian Transport Services website it is advised that Tasmanian residents consult with a doctor, if they are concerned about any condition that may affect driving.

Check out the Tasmanian Older Drivers’ Handbook for more information.

Victoria

Similar to Tasmania, in Victoria the onus is more on the driver to self-assess their own driving abilities each year. In fact, Vic Roads stresses assessing how a medical condition could affect driving, regardless of your age.

Western Australia

Once you turn 80 in Western Australia, you will have to pass an annual medical assessment in order to renew your driver’s licence. Then when you turn 85, you may be required to pass a practical driving test as well in order to carry on driving.

What car insurance options are there for seniors?

So you’ve got the green light to carry on cruising, now you’re ready to start comparing car insurance policies. The question is where to start? We know you’ve done all this before, but there’s never a bad time for a quick refresher on the levels of cover available to you and your wheels.

Compulsory third party (CTP)

This one isn’t actually an option, as it’s compulsory to have no matter where you live in Australia. It is the most basic level of cover you can have and it provides liability for you, should you cause injury or death to others while on the road. It is important to note that it does not provide cover for your actual car.

Read more about how this type of car insurance works in our guide to CTP insurance in different states and territories in Australia.

Third party property

The first of your actually optional options, third party property cover is seen as the intermediate level of cover provided by insurers in Australia. Under a third party property car insurance policy, the costs to repair or replace any damaged property that doesn’t belong to you will be covered in the event of an at-fault accident but could be capped. A cheaper alternative to full blown, comprehensive car insurance, this level of cover won’t be able to help out with any of the costs in repairing your own set of wheels, however. For this reason, seniors often steer clear of this level of cover and opt for a cheap comprehensive policy that will minimise the risk of a big, out-of-pocket expense that hasn’t been budgeted for.

Third party property, fire and theft

An extension of third party property, fire and theft cover provides all the benefits of its predecessor's with the added peace of mind that comes with knowing that if your car is torched or stolen, you’re also covered.

Comprehensive

Welcome to the most comfy level of cover. Comprehensive car insurance policies will have your back for a range of events including things like a storm, fire, on-road accident and if your car is vandalised. This level of insurance also comes with generous monetary caps for things like personal property or trailer cover and little luxuries like having the freedom to choose your own excess and repairer should something go wrong.

Generally speaking, this level of a cover is what most seniors opt for. Not only have they likely had this level of cover throughout their many years on the road, comprehensive car insurance also eliminates the chance you’ll have a large, unpayable sum to fork out if your car is damaged. While there may be some breathing room in your budget, the last thing you need is to have thousands of dollars worth of damage to pay for out of your own pocket while on the pension.

Are senior-specific insurance policies worth it?

If you’ve done a quick search on the internet, you may have come across some specialist insurance providers that advertise policies specifically for seniors. Two examples of this in the Aussie car insurance market are Apia and Australian Seniors.

Apia, which markets itself as Australia’s leading over 50s insurance specialist, promises ‘great value products and services’ to its senior customers. Likewise, Australian Seniors promises to ‘offer flexible cover options for over 50s.’

Now, whether or not insurance designed specifically for seniors is the right choice for you will depend on your situation. To cover all your bases, we’d recommend gathering personalised quotes from a range of providers (both specialist and more general) and comparing them. Of course, one potential plus with more targeted insurance is that when it comes to making a claim, you’ll be dealing with people who know your lifestyle and situation a little better.

What car insurance discounts are available for seniors?

No matter your age, discounts can be a great way to reduce your car insurance premium. Some insurers 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 insurer.

Should I agree a value for my car as a senior?

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 insurer 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.

Does seniors car insurance cover grandchildren?

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.

If you think you’re ready to head to the market, you can compare a range of senior suitable comprehensive policies using Mozo’s car insurance comparison table or head to our guides hub for a range of other useful car insurance information.