When trying to get a car insurance policy, multiple factors come into play. And, age is one of the primary factors that insurance companies consider when calculating your premium.
If you’ve hit the half-century mark, you most likely have years of driving experience under your belt. Fortunately, insurers see this as a positive, which leads to them offering you a lower premium.
So, if you’re looking for the best car insurance for over 50-year-olds, you could refer to this guide for some helpful hints and tips. We’ve compiled some of the questions that you might have and provided comprehensive answers to help you make your decision.
Benefits of applying for car insurance for individuals over 50 in Australia
The more experience, the more trust
When you’re over 50, you have extensive driving experience, so you’re less likely to total or cause any damage to your car. Insurers are therefore reassured and are more willing to offer lower premium amounts to drivers over 50.
Restricted drivers licence means reduce risk-levels
You might have a restricted drivers licence at this point, which could work out in your favour. Many insurers tend to offer restricted drivers policy options with considerably lower premiums.
Easy options to change the policy
You can easily change your current insurance policy to over 50 comprehensive car insurance without waiting for it to expire. This could allow you to access the savings on premiums sooner.
How to apply for an over 50 comprehensive car insurance policy
As you have a variety of options, you need to know which works best for you. Following these three steps will help you to find the policy that may work well for you.
Step 1: Plan ahead
The first thing you need to do is determine what type of cover you need as this will help you shortlist policies that match your requirements and budget.
Step 2: Compare car insurers
Many car insurers offer various types of policies, and each type has a different kind of coverage. Some include fire, others include theft, while others offer you attractive discounts. So, you need to compare car insurers carefully and determine which policy benefits you the most.
Step 3: Find the most suitable policy
Once you’ve done all your research, it’s time to choose the policy that best suits your situation. Do remember to read over all the details and review the extra cover options before you make any final decision.
Discounts to look for when comparing policies
Regardless of your age, applying for discounts can be a good way for you to lower your insurance premium. So, we’ve compiled a list of discounts that you could look out for when you’re applying for car insurance for 50 years and over.
Like most Aussies, you too can get a discount on your car insurance premium by purchasing the policy online, instead of over the phone or in person. You could consider consulting with an insurance broker or comparing various options to see which insurer has the best discounts for purchasing a new insurance policy online.
After years on the road, you can leverage all your good driving experience and history in the form of a no claim bonus. Insurers reduce the premium price for every year that you make no claims on your policy. Your insurer will calculate your no-claim bonus by analysing factors like:
- How long you’ve been driving.
- Your previous claims history.
- Your rating from your previous car insurer (if switching insurers).
Your rating is dependent on the number of claim-free years that you have. The higher your rating, the more your discount will improve. For example, drivers with ‘Rating 1’ haven’t made a claim for five years and are usually offered the highest discounts.
Limited Use Discount
If you aren’t planning to drive your car much or for long distances, you should consider applying for the limited use discount. This discount can slash the premium amount in exchange for restricting the kilometres you can drive throughout the length of your policy.
There are many more discounts that you can apply for that can help you get cheap car insurance for over 50-year-olds. You just need to speak to your insurer or compare offers online.
The difference between seniors and over 50 car insurance in Australia
In most types of insurance, the older you are, the higher your premium tends to be. However, when it comes to over 50 car insurance, this is typically not the case. You should take advantage of this benefit when you cross over the 50 mark. This is because, while people aged between 50 and 60 pay lower premiums, once you hit 60, your premium could shoot up, due to possible health problems like:
- Impaired hearing and vision
- Slower reaction times
- Physical problems like arthritis and heart issues
- Use of prescription medicines