Get affordable car insurance that rewards your experience on the road as an older driver
Age makes a substantial difference to car insurance prices. If you haven’t reviewed your car insurance since turning 50 you may be able to save on your policy by re-examining your cover.
Insurance premiums are determined by the level of risk you present to the insurance provider and many recognise that pensioners are generally safe drivers with a lot of experience on the road. If you haven’t recently adjusted your policy, there might be a more competitively priced option out there with the same, or even more, features included.
Find suitable car insurance for your needs
If you haven’t reviewed your car insurance in a while, you might be able to find lower prices or additional cover with a new policy.
How can I get lower premiums by switching?
- A reduced level of risk. If you’ve changed address, have a new car or are simply in a different age group then this can affect your premiums. Insurers consider many different factors when pricing car insurance, and if your information isn’t up to date then you might be paying more than you need to.
- Updating your policy. You can adjust car insurance policies directly at renewal time, or when taking out new cover, to find prices more tailored to your situation. There are many ways to do this which are explained further below, such as choosing a new excess, restricting drivers and making sure your vehicle is eligible for discounts.
How can I get more suitable cover by switching?
- Cover matched to your needs. It might be time to consider adjusting your cover to suit the condition of your vehicle. For example, you may have additional features that are no longer relevant to your current situation.
- More ideal terms. When you update your policy you can adjust the benefits for lower prices, or to get an additional level of cover to suit your needs.
- A preferable insurer. Different insurance providers can have different terms and characteristics which make them more or less suitable for different people. For example, some insurers will only insure people over the age of 50.
If you’re comparing policies, you might want to look over some ways to keep costs down and make sure you find a more suitable option.
- Sign up for a policy online. Insurance companies will offer you a discount, sometimes as much as 35% off, simply for signing up online instead of over the phone or in another way. If saving money is important to you then looking for online discounts is well worth it.
- Park securely. Parking on the street raises premiums more than parking in a carport, which in turn will typically cost more than parking in a secure garage.
- Find limited use discounts. Does your current insurer offer an option for you to pay less when you drive less? If you aren’t driving as much as you used to, there’s no reason to keep paying premiums as though you were.
- Use restricted driver discounts. Premiums are largely determined by the least experienced driver listed on a policy. By selecting a policy that offers a restricted driver option, you can set a rule that no one under a certain age is insured while driving your car, so the cost of car insurance will more accurately reflect the experience of the driver.
- Driving course discounts. Some insurers will give you discounts for passing an approved driving course, whether or not you actually needed it.
- Adjust your excess. Some insurers give you the option of adjusting your own excess, and let you choose a higher excess for lower premiums, or a lower excess for higher premiums.
- Choose agreed or market value. Market value means your car is insured at standard market prices, subject to depreciation. Agreed value means you decide how much the car is insured for. Typically market value is the more cost-effective option, but you might choose a certain agreed value to reduce costs or otherwise lock in the exact sum insured that you want.
- Have security. Car security systems can go a long way towards decreasing the odds of theft. Many insurers acknowledge this with discounts for having car security systems. This doesn’t mean spending a fortune on electronic systems, but can instead be as simple as spending a small amount on a VIN etching kit and making the amount back in reduced insurance premiums.
- Take advantage of pensioner concessions. As a pensioner, you do not necessarily have to pay full price for CTP insurance or vehicle registration.
Eligible pensioners holding the appropriate cards may access discounted, or free, vehicle registration and CTP insurance depending on which state you live in.
|NSW||Free, 100% off||No concessions||Centrelink concession card, or eligible DVA card|
|VIC||50% off||50% off||Centrelink health care card, pensioner concession card or eligible DVA card|
|QLD||May vary depending on eligibility||May vary depending on eligibility||Queensland seniors card or pensioner concession card|
|SA||50% off registration and driver’s licence fee||Exemption from stamp duty||State or Commonwealth concession card|
|WA||Free, 100% off for aged pension recipients and eligible veterans, 50% for others||No discounts||Centrelink age concession card, DVA card|
|TAS||40% off||$64 off||DHS or DVA cardholders|
|NT||$154 off 12-month registrations, $77 off 6-month registrations, free driver’s licence||No concessions||NT Pensioner and Carer Concession Scheme members|
Pensioners are considerably safer on the roads than younger drivers, at least until the age of about 75 when they become the most at-risk drivers. However, some of the most significant differences can be found in the way older and younger people handle car insurance.
According to 2014 Australian motor vehicle census data:
- Pensioners aged 50-plus are twice as likely to read and understand their car insurance policy documents as a young person aged 18 to 24.
- Only 48% of pensioners and 24% of young people actually read their policy documents and understand their cover.
- 38% of young people say they don’t look at their policy documents at all.
- 14% of pensioners say they don’t look at their policy documents at all.
- 20% of young drivers admit to having “misrepresented details”, or lied, to their insurer about details such as where they garage the car overnight, while only 2% of older drivers admit to this.
- 10% of younger drivers admit to having misrepresented details such as prior speeding infringements, while only 3% of older drivers say the same.
When you’re looking for a new car insurance provider, try to avoid making these same mistakes. Ideally you’ll find a new long-term insurer, but remember to keep comparing policies and looking for a preferable deal.