Answered – your top questions about car insurance for Australian seniors and pensioners
Circumstances change, however, when motorists reach a more senior age. Although not as likely as to be involved in accidents as young and less experienced drivers, according to data from the Office of Road Safety’s National Road Safety Strategy, senior citizens, because of their age, bring a different set of risks.
These risks, according to the financial comparison website Canstar, stem more from the condition of their health than their driving behaviour.
“Car insurance can start becoming more expensive for drivers over the age of 60,” the firm wrote on its website. “People in this age group are statistically more prone to suffering from health problems that could affect driving ability, such as impaired hearing and vision, slower reaction times, and sudden heart or brain issues. This means insurance companies may spend more on claims for older drivers, and thus charge higher premiums as a result.”
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Several personal finance websites have laid down ways that Australian seniors and pensioners can save on auto insurance. But before they do, there are a few things that people in this age group need to understand about this tailored coverage. Here are some of the most common questions seniors ask, along with the answers from industry specialists.
What is seniors’ car insurance?
Seniors’ car insurance is a specialised policy offered to older drivers who reach a certain age. The age limit varies depending on the insurance provider, usually ranging from those as young as 45 to those over 80-years old. These auto insurance policies often have features and benefits tailored to senior citizens and pensioners based on their driving history, which include the number of claims they have made across their driving lives, according to the money-saving advisory website Mozo.
Who qualifies as a senior?
There is no industry standard definition for a “senior” or “pensioner” when it comes to car insurance, Mozo adds. Typically, the age limit or other requirements vary from insurer to insurer, so it is best to get those details from each provider.
What are the licensing requirements for senior drivers in Australia?
States and territories have different rules for seniors who want to keep their driver’s license. Here are licensing requirements for each state and territory, according to specialist insurance provider Australian Seniors.
State/Territory
Requirements
Australian Capital Territory
Annual medical report submitted to the Road Transport Authority for drivers aged 75 and older
New South Wales
Annual medical checks for Class C drivers aged 75 to 79
Annual medical checks and on-road assessment for drivers aged 80 to 84, depending on their licence type
Annual medical checks and either on-road assessment or take out a modified licence for drivers 85 and older
Northern Territory
Disclose medical conditions that may affect their driving ability
Encouraged to undergo medical assessment for fitness to drive
Queensland
Valid medical certificate issued by a doctor for those 75 and older when driving, renewed every 13 months
South Australia
Holders of Class C licences are sent a self-assessment form by the state from age 75
Pass a 30-minute practical driving test if a doctor deems necessary
Tasmania
Disclose medical conditions that might affect their driving ability
Five-year limit to licence validity once driver turns 65
Victoria
Disclose medical conditions that might affect their driving ability, regardless of age
Encouraged to self-assess their driving ability each year
Western Australia
Annual medical assessment starting age 80
Practical driving test if recommended by a doctor
What are the different types of car insurance coverage available for seniors?
Just like standard car insurance, policies for seniors and pensioners have different features and benefits. These include:
Compulsory third-party (CTP) coverage: Protects against liability should the policyholder cause injury or death while driving
Third-party property coverage: Covers legal liability for loss or damage to someone else’s property
Fire and theft cover: Provides coverage if the vehicle is torched or stolen
Comprehensive cover: Pays out for vehicle damage caused by an insured peril such as fire, storm, on-road accident, and vandalism; also covers legal liability for loss or damage to someone else’s property
Caravan and trailer insurance: Covers for loss or damage to the policyholder’s caravan or trailer
Roadside assistance: Provides expert assistance for vehicle breakdowns.
Does car insurance for seniors cost more?
Apart from age, several factors impact the price of car insurance premiums. These include the driver’s gender, claims history and driving record, as well as the vehicle’s market value, make, model, and colour. According to Mozo, auto insurance for seniors can be a cheaper alternative to comprehensive policies because “loyalty, safe-driver, and reduced-kilometre discounts can accumulate and bring down costs over time, in addition to specific senior and pensioner discount offers.”
How can Australian seniors and pensioners save on car insurance premiums?
Canstar recommends several practical tips that can help senior citizens slash car insurance rates. These are:
Availing of any senior-specific discounts from the insurance provider
Parking the vehicle in a secure location
Completing a safe driving course
Switching to a less expensive vehicle
Checking eligibility for a no-claims bonus
Installing anti-theft devices
Increasing car insurance excess.
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Are there specialist providers of car insurance for seniors in Australia?
While all car insurance companies in Australia offer policies for senior drivers, there are specialists that provide coverage tailored specifically for the over-50 demographic. Here are some of them:
Insurer/Policy name
Features and benefits
Apia Comprehensive Car Insurance
Up to $1,500 coverage for after claim expenses when the car is stolen or damaged
Up to $20 million legal liability coverage for damage caused by the policyholder’s car
Lifetime guarantee on repair work authorised by the company
Drive Less Pay Less discount if distanced travelled is under 20,000km per year
Optional:
24/7 roadside assistance with unlimited callouts
Windscreen and window glass cover
Hire car coverage after an event for unlimited days
Australia Seniors Comprehensive Car Insurance
New for old replacement for 24 months
Hire car coverage after theft
Guaranteed cover on authorised repairs
Flexible payment options
Agreed value
Hassle-free claims
Emergency repairs and towing costs
National Seniors Comprehensive Insurance
Cover for fire, theft, accidents, and malicious damage
Covers for legal liability for loss or damage to someone else’s property caused by a motor vehicle accident, whether the driver is partly or fully at fault
Up to 10% discount on first year’s premium if the policy is purchased online
Safe driver discount
24/7 phone or online claims services
