Car insurance guide for seniors
Wondering about what kind of car insurance cover to have as you head into your golden years? This may depend on a few factors like your budget, the value of your vehicle, and how often you plan to use it.
Tips for choosing car insurance
Third Party Property Damage Car Insurance
Don’t want cover for damage to your own vehicle? Third Party covers like AAMI Third Party Property Damage Car Insurance will cover you in case your vehicle causes damage to someone else’s vehicle or property and you’re found liable – but damage to your own car won’t be covered. This cover also extends to damage caused to third party property by caravans and trailers towed by your vehicle.
AAMI Third Party Property Damage Car Insurance will also cover damage to your vehicle caused by uninsured drivers up to $5,000 – but only if the driver of your car didn’t contribute to the accident and you can give us the name and address of the person at fault and the registration number of the at-fault vehicle.
Third Party Fire & Theft
You can also upgrade your Third Party Property Damage policy by adding Fire & Theft cover on your AAMI policy for an additional premium. This will cover the repairs or replacement of your car if it’s stolen, or damaged by fire or attempted theft. The most we’ll pay for any one incident is the amount covered on your policy, less any deductions – up to the limit of $10,000.
This cover also comes with some additional benefits:
- A hire car after theft for up to 21 days.
- A hire car after a not-at-fault incident.
- Cover for baby capsules and child seats damaged by fire, theft, or attempted theft.
- Cover for loss of personal items in your car at the time of the incident up to a total of $500 per item for any one incident. Limits and exceptions apply such as cash and tools.
Read the PDS for the full list of terms and exclusions.
Comprehensive Car Insurance
If you are after cover for your vehicle as well, consider a comprehensive cover like AAMI Comprehensive Car Insurance. It includes all the coverage under AAMI Third Party and Third Party Fire & Theft policies – plus your vehicle is also covered against a wide range of events, such as:
- storm (including cyclone)
- vandalism, and
- collision and impact.
For an additional premium you can add some optional covers to your comprehensive policy:
- A hire car after an event for unlimited days (whether you’re at fault for the damage or not).
- Windscreen and window glass cover – allowing you to make once excess free claim for a damaged windscreen per period of insurance if the windscreen is the only part of the car that was damaged.
- AAMI Roadside Assist to help you with things like a flat tyre, towing to a repairer or emergency fuel delivery.
You can also take control of your policy by varying your excess with AAMI Flexi Premiums®.
Benefits for seniors buying car insurance
AAMI Safe Driver Rewards
If you’re a safe driver and you have AAMI Comprehensive Car Insurance, you could benefit from AAMI Safe Driver Rewards. For every consecutive year that you renew your AAMI Comprehensive Car Insurance policy and don’t make an excess-payable claim, you’ll gain a portion of your premium back as a credit on your next renewal.
If you’ve been a safe driver for at least the last ten years, you could receive up to 15%* credit on your insurance premium and up to 25%^ off AAMI Roadside Assist.
Insurers take into consideration a number of factors when calculating premiums. Some that senior drivers could think about are:
- Average kilometres driven each year. If you’re driving less than before, make sure to update the kilometres driven on your policy. This may reduce your premium.
- Listed drivers on your policy. If you’ve had teenagers who are grown up and no longer driving your car, or any other drivers you’ve previously listed who no longer regularly drive your car, then removing them as listed drivers on your policy could lower your premium.
Staying safe on the road as a senior driver
Many older Aussies value the independence of driving, but the changes that come with age often mean taking extra steps to remain safe on the road.
Consider some of these tips for safer driving:
• Get regular health check-ups. In some states such as QLD or NSW you’re required to have a yearly medical assessment over a certain age to keep your license – so make sure to research your state’s licensing rules.
• Do regular vehicle maintenance. Things like oil changes and tire rotations could help you avoid potential costly repairs down the track – which could be vital if you’re on a fixed income.
• Plan your driving. If you can, avoid peak hour traffic, driving at night and in severe weather, and take more familiar routes to your destinations.
And if you’re still unsure about which type of cover might be right for your vehicle, the team at AAMI can help. Our experts are available to answer all your questions – simply call us on 13 22 44 or chat with us on Messenger or WhatsApp to find out more.
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* Maximum 15% credit is for drivers who don't make a claim on their AAMI Comprehensive Car Insurance policy that impacts their Safe Driver Rewards status for 10 years+. Credit is a percentage of the rated premium paid the previous year and is applied as a credit to next year's rated premium.
^ Maximum 25% discount is for drivers who don't make a claim on their AAMI Comprehensive Car Insurance policy that impacts their Safe Driver Rewards status for 9 years+.
AAMI Insurance is issued by AAI Limited ABN 48 005 297 807 trading as AAMI. This advice has been prepared without taking into account your particular objectives, financial situation or needs, so you should consider whether it is appropriate for you before acting on it. Please read the relevant Product Disclosure Statement before you make any decision regarding this product. The Target Market Determination is also available.
The information is intended to be of general nature only. Subject to any rights you may have under any law, we do not accept any legal responsibility for any loss or damage, including loss of business or profits or any other indirect loss, incurred as a result of reliance upon the information. Please make your own enquiries.