Need to know
- Seniors can often get cheap car insurance premiums as insurers value their on-road experience
- Some insurers let you pay monthly at no extra cost or offer discounts for pay-as-you-go car insurance
- Some states require drivers aged 75 and over to undergo yearly medical assessments
Car insurers value experienced drivers, that's why premiums get cheaper the older you get. But that changes once you hit 70, when premiums increase slightly again.
It's also worth noting that in some states you will also need an annual medical assessment to keep your license once you turn 75, or if you develop a medical condition that could impact your driving. Some states even require that you sit another driving test.
Shopping around is key to getting value for money on seniors car insurance.
If you're looking for the best price on your car insurance, you can use our tool to compare over 50 comprehensive car insurance policies. You can save money and get better cover with car insurance policies recommended by CHOICE which are cheaper than average policies from other insurers. We're not like the other insurance comparison websites – we don't get paid by any of the insurers we're comparing. And CHOICE is not-for-profit, so your membership fees help our fight for fair consumer rights and empower you to get the best products.
On this page:
- How much does car insurance cost for seniors?
- Best insurers for car insurance on a budget
- Car insurers for seniors and age pensioners
- Driving restrictions for pensioners
How much does car insurance cost for seniors?
Drivers aged 60 to 69 pay the cheapest average premium of all age groups – $1220 on average. Older drivers aged 70 and over pay the second-cheapest premium from any age group, $1230 on average.
Best insurers for car insurance on a budget
When you're retiring or working less hours, saving on car insurance becomes more important than before. Paying your insurance monthly helps with budgeting.
While many insurers charge you more if you can't afford to pay your annual premium upfront, some allow you to pay your premium monthly at no extra cost, they include:
If you don't need to drive to work, you might need your car less. Several insurers give you a pay as you drive discount for low kilometres, they include:
- AAMI
- Apia
- Australian Seniors
- Budget Direct
- Coles
- GIO
- Suncorp
- Woolworths Everyday.
Not all insurers advertise their low kilometre discount but it's always worth asking.
Need some help making sense of your options? We've put together a car insurance buying guide filled with tips and advice, including ways you can get discounts.
Car insurers for seniors and age pensioners
There are three car insurers that sell car insurance exclusively to over 50s. When shopping around, it might be a good idea to include them to see if they offer value for money for you.
APIA (Suncorp)
APIA is an insurance company that started in Australia 30 years ago. It's part of Suncorp, an Australian finance and insurance corporation based in Brisbane, Australia. Next to its own-branded policies, Suncorp underwrites several other general insurance brands, including AAMI, GIO, Bingle and Shannons.
Is Suncorp not-for-profit? No
Is Suncorp Australian-owned? Yes
Australian Seniors (Hollard)
Australian Seniors is an insurance company that launched in 1998. Its car insurance is provided by Hollard. Operating in Australia since 1999, Hollard is part of the Hollard International Group and its parent company is IVM Intersurer BV, a Netherlands-based insurance business investment holding company. It underwrites several other general insurance brands, including CommBank, Real and Woolworths.
Is Hollard not-for-profit? No
Is Hollard Australian-owned? No
National Seniors Australia (Allianz)
National Seniors Australia is a not-for-profit organisation established in 1976. It uses membership fees and profits to pay for its advocacy for older Australians. National Seniors car insurance is underwritten by Allianz. Allianz is a German financial services company and also the underwriter for many other general insurance brands from banks, credit unions and building societies, including Westpac and ANZ.
Is Allianz not-for-profit? No (National Seniors Australia is not-for-profit)
Is Allianz Australian-owned? No (National Seniors Australia is Australian-owned)
Compare car insurance for APIA, Australian Seniors and National Seniors Australia with other car insurers.
How to save on car insurance for seniors and pensioners
- Shop around – premiums for car insurance vary widely.
- Choose a policy recommended by CHOICE – not only will you get better features, CHOICE recommended policies can also save you money.
- Buy your car insurance online to make use of online discounts.
- If you can, store your car in a secured, locked garage. Sometimes you can also save by installing an anti-theft device such as an alarm or immobiliser.
- If you have a seniors card, mention it – some insurers give seniors card holders a discount, for example, RAA, Australian Seniors and RACQ (home & contents insurance only). You may also be eligible for discounts on car registration and driver's license renewal.
- If you can, restrict the age of the people who can drive your car. Insurers may reduce your premium if you restrict your car insurance to drivers of a certain minimum age, such young drivers under 25.
- Increase your excess.
- Depending on the value of your car, it may be worth only taking out third-party cover instead of comprehensive car insurance.
Different states have different requirements that older drivers must meet.
Driving restrictions for pensioners
In the section below we outline state-by-state restrictions and conditions for older drivers on a standard driver's license. There are different rules depending on what type of license you hold.
ACT
Age from which older driver rules apply: 75
- Medical assessment: From 75 years of age – annually
- Driving test: Na.
More information: Access Canberra.
NSW
Age from which conditions for older drivers apply: 70
- Medical assessment: From 70 years of age if recommended by doctor, otherwise from 75 years of age – annually
- Driving test: From 75 years of age if recommended by doctor, otherwise from 85 years of age – every two years. However, drivers aged 85 years and over who don't want to do a driving test can instead choose a modified license with distance restrictions that will allow them to drive in their local area to be able to do their shopping and attend community activities and medical appointments. Greater distances are allowed if you live in a country area.
More information: NSW Government - Driving in NSW.
NT
Age from which conditions for older drivers apply: Na. Vision test every five years for drivers of any age.
- Medical assessment: If requested by a health professional.
- Driving test: Na.
More information: Road Safety NT.
QLD
Age from which conditions for older drivers apply: 75
- Medical assessment: From 75 years of age – annually (every 13 months)
- Driving test: Na.
More information: Queensland Government - Seniors, safe driving.
South Australia
Age from which conditions for older drivers apply: 75
- Medical assessment: From 75 year of age, self-assessment – annually
- Driving test: If requested by doctor
More information: My Licence - SA Government.
Tasmania
Age from which conditions for older drivers apply: Na
More information: Tasmania Government - Transport Services.
Victoria
Age from which conditions for older drivers apply: Na
More information: Transport Victoria - Older people.
Western Australia
Age from which conditions for older drivers apply: 80
- Medical assessment: From 80 years of age – annually
- Driving test: If requested by doctor.
More information: Government of Western Australia - Department of Transport.
Other conditions may apply
This state-by-state breakdown is a general guide, but it's also important to note:
- Stricter rules may apply for a heavy vehicle license.
- Different rules apply if you have a medical condition such as dementia or are on any medication that could affect your ability to drive.
- Many drivers have conditions on their license such as the requirement for an eye test or vehicle modifications for people with a disability.
Stock images: Getty, unless otherwise stated.
