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Which insurer offers the most suitable seniors’ car insurance policy?

Alex Ritchie avatar
Alex Ritchie
- 5 min read
Which insurer offers the most suitable seniors’ car insurance policy?

As you enter your golden years, you may find that a lifetime of safe driving has paid off. Insurers will likely favour you and your premiums have tended to decrease.

But car insurance premiums can be high for Australians over 60 years of age, no matter how healthy you are. For Australian seniors, buying car insurance can be more costly at a certain age as you face harsher licensing requirements - which vary from state to state. 

So, which car insurance policy is the most suitable for seniors? Unfortunately, there is no one-size-fits-all best policy, as every single senior driver is different. This is why it’s so important to carefully compare car insurance options. 

Which car insurance policy is most suitable for seniors?

The most suitable car insurance policy for any senior Australian is one that best suits their needs and their budget. This means you may need to do a little research to find your best 

option. 

How to compare car insurance policies

1. Choose your insurance type

There are four main types of car insurance; 

  • Compulsory third party (CTP) - Your green slip, which covers injuries to others if you are at fault.
  • Third party property damage -Covers damage your vehicle may cause to another’s car or property.
  • Third party property, fire and theft - Includes the above, as well as damages from fire or theft.
  • Comprehensive car insurance -  Most exhaustive car insurance available. Includes the above, as well as damages from events like storms and bushfires. 

If you’re looking for a policy that will keep costs down in terms of ongoing repayments, it could be worth considering only taking out CTP insurance (aka your green slip). Just keep in mind that you will not be covered for any damages outside of injuries to another person, so if the worst were to occur, you could be significantly out of pocket for additional damages. 

2. Compare premiums

Now you know the type of car insurance you want, the next most significant factor to compare is the premium, or recurring payment you may be charged by the insurer. Unfortunately, your car insurance policy is primarily aimed at covering your liability for accidents for which you are at fault. 

This means that, put simply, the insurance provider may assess you require more coverage than the average driver and typically charge you a higher premium. From an insurer’s perspective, risk factors, such as hearing or eyesight loss, in senior Australians may heighten the risk posed to other drivers, cars, or property.

However, if you have an excellent driving history, or if you agree to modifications, such as driving only during the day time, you may be able to convince the insurer to lower your premium.

3. Compare excess costs

Car insurance excess, or the amount you agree to pay when filing an insurance claim, is also a crucial ongoing cost to compare. While opting for a higher excess might lead to lower premiums, the out-of-pocket expenses in the event of a claim can be significant. 

Senior Australian drivers may want to assess their driving habits and the likelihood of making a claim, factoring in their ability to cover a higher excess if needed, before proceeding with a higher-excess insurance policy. On the other hand, while a lower excess means higher premiums, it may also offer some relief for your savings in the event of an accident. 

4. Market Value vs. Agreed Value

You have two options for how your comprehensive car insurance works in the event that the vehicle is written off: market value or an agreed amount.

With market value car insurance, which is usually the default, your insurer pays you based on what your car could sell for in the general market if it's seriously damaged. They'll estimate this value using the market prices around the time of the accident.

On the other hand, agreed value insurance lets you decide the amount you want your car to be covered for. This choice gives you certainty about the payout you'll get from the insurer if you need to make a claim. 

What are the rules for older drivers in Australia?

The specifics around senior drivers in Australia and any restrictions differ for each state and territory. 

The following states and territories require drivers 75-years or older to get a doctor to certify they are fit to drive each year:

  • Australian Capital Territory
  • New South Wales
  • Queensland
  • Western Australia (80 years or older)



The following states and territories allow older Australians to self-assess their driving ability, unless a medical condition makes annual assessment necessary:

  • Tasmania
  • South Australia
  • Victoria

Is there any way to reduce a car insurance premium as a senior? 

If you have a reasonably clean driving history and have not filed an insurance claim recently, you may be able to qualify for a discount on your car insurance premium. In general, you need to convince the insurer that you are a reasonably safe driver unlikely to get into an accident by, for instance, enrolling for a defensive driving course.

You may also want to list a younger member of your family (above the age of 25) as the primary driver of your car if possible, as they are more likely to be seen as safe drivers. Ideally, you would want to count on this person to do the majority of the driving rather than hit the road yourself.

Alternatively, you may want to buy your policy from the same insurer from whom others in your family have bought car insurance to try and grab a multi-policy discount. If you are going to be the primary driver, consider opting for a ‘pay as you drive’ car insurance policy rather than a full-time policy, or a policy that gives you a discount for driving less often. 

Compare car insurance

Agreed or market valueNew for old car replacementRoadside assistance

Either

if written off before 2 years

Standard

  • New car replacement
  • Flexible excess
  • Roadside assistance

Either

if written off before 2 years

Optional

AAI Limited T/AS AAMI
Comprehensive
  • New car replacement
  • Flexible excess
  • Roadside assistance

Either

if written off before 2 years

Optional

AHM Health Insurance
Comprehensive
  • New car replacement
  • Flexible excess
  • Roadside assistance

Agreed

if written off before 2 years

Not available

Allianz Australia Insurance Ltd
Comprehensive
  • New car replacement
  • Flexible excess

Product database updated 21 May, 2024

This article was reviewed by Personal Finance Editor Mark Bristow before it was published as part of RateCity's Fact Check process.

Promoted car insurance

Youi Pty Ltd

Comprehensive

  • New car replacement
  • Flexible excess
  • Roadside assistance

Agreed or market value

Either

Roadside assistance

Standard

AAI Limited T/AS AAMI

Comprehensive

  • New car replacement
  • Flexible excess
  • Roadside assistance

Agreed or market value

Either

Roadside assistance

Optional

AHM Health Insurance

Comprehensive

  • New car replacement
  • Flexible excess
  • Roadside assistance

Agreed or market value

Either

Roadside assistance

Optional

Allianz Australia Insurance Ltd

Comprehensive

  • New car replacement
  • Flexible excess

Agreed or market value

Agreed

Roadside assistance

Not available

product data updated on

Product data updated on 21 May 2024