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Helpful tips on seniors car insurance


It’s a common misconception that the older you are, the more you have to pay on your car insurance. Not only is that usually untrue, it’s actually quite often the opposite!

Senior drivers can often access specific discounts and lowered premiums thanks to their age, driving experience and lifestyle. So if you’re still enjoying being out on the road, but are worried about the costs involved in keeping your car protected with insurance, you might be pleasantly surprised by just how affordable it can be!

Choosing the right car insurance for you

First things first, it’s important that you understand the different kinds of car insurance for seniors so that you can make sure you select the right one – according to your driving habits and lifestyle. The best car insurance for seniors might be different for everyone, so it’s worth investigating a little further.  

For example, if your car has seen better days and you only occasionally use it to get from A to B to do grocery runs or visit the grandkids, Third Party Car insurance  may be better for you. It’s usually more affordable, and covers damage to other people’s vehicles or property if you’re in an accident. It doesn’t cover damage to your own car, though – unless it was made by an uninsured driver.

Comprehensive Car Insurance , on the other hand, gives a bit more comprehensive cover (as the name would suggest). With this type of insurance, you’re covered for your car being stolen (or being damaged in an attempted theft), other people’s vehicles and property, damage to your own vehicle, damage to legal accessories and modifications made to your car, and more. If you are getting out and about a bit, and/or your car is close to your heart and you want to make sure it’s fully covered, this could be the better option for you.

Of course, it’s always important to make sure you read up on both to see which one will be the best fit for you.

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Benefits for seniors buying car insurance

As well as taking into consideration the kind of car insurance for seniors that’s going to work best for you, there are some extra rewards and incentives that can be factored in with seniors car insurance discounts. It’s important to know what these are, because you might be able to save some extra cash.

AAMI Safe Driver Rewards

Being covered in case something happens on the road is one thing, but what if nothing ever happens? The Safe Driver Rewards scheme is all about rewarding AAMI customers who consistently drive safely on the road. 

For every consecutive year that you’re covered by AAMI’s Comprehensive Car Insurance and drive safely, you can earn a greater discount on your policy. By the time you’ve been insured with AAMI and driving safely for 9 years, you could get a credit of 10% off your car insurance premium, and a 25% discount off Roadside Assistance.

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Lower premiums

There are a bunch of different factors that go into working out how much you’ll need to pay for your car insurance premium. A couple of these that can affect senior drivers in particular are:

  • Age – usually the older you are, the lower your premium will be.
  • Average kilometres driven each year – with age, and especially in retirement, many people find themselves driving a lot less. Luckily for you, if your car is out on the road being driven less, you’re more likely to have a lower premium. If you’re already covered by car insurance but are driving less than you used to, it can be worthwhile updating your policy to make sure you’re saving as much as possible on your premium.

Car insurance is a consideration that everyone who owns a car should consider – no matter their age or how often they drive. It’s a decision that only you can make for yourself, but it’s also good to know that there are certain benefits, discounts, and lowered premiums that come with age and experience. 

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AAMI Car Insurance, NSW and ACT CTP Insurance, and Caravan Insurance are issued by AAI Limited ABN 48 005 297 807 AFSL 230859 (AAI) trading as AAMI. Any 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.