All licensed drivers in Australia, including seniors, are legally mandated to have car insurance. There are specific considerations seniors should keep in mind when securing auto insurance.
Licensing Requirements for Seniors
First and foremost, seniors must adhere to particular driver’s license rules and restrictions. These regulations vary by state but generally affect drivers aged 75 and over. Drivers in this age bracket typically need to obtain medical clearance and pass certain driving tests to maintain their licenses. Ensuring that you meet these requirements to keep a valid driver’s license is the first step before selecting a car insurance policy.
Types of Car Insurance Coverage
- Compulsory Third Party (CTP): As the name suggests, this coverage is mandatory. It covers your liability in the event of causing injury or death to others while driving. However, it does NOT protect against damage or loss to your car.
- Third Party Property: This covers your liability for causing damage to other people’s property.
- Fire and Theft: This covers your losses in cases of fire or theft of your vehicle.
- Comprehensive: This is the most popular and recommended coverage for seniors. It provides protection for most causes of loss, particularly for your car. This includes incidents like vandalism, storm damage, and theft of personal property inside the vehicle.
- Agreed Value Coverage: This type of coverage provides you with a predetermined value for your car, which you will receive if your vehicle is declared a “total loss.” Without this, you would only receive the “fair market value” of your car, which is usually less, often significantly so. While this coverage carries a higher premium and isn’t available from all insurance companies, it can offer peace of mind.
Discounts
- Senior Driver: Many companies offer special discounts for drivers over 50 or 60 years old.
- Part-Time Driver: If you use your car infrequently, both in terms of time and mileage, you might be eligible for a discount.
- Good Driving Record: If you have an extensive driving history with few or no claims, you should receive a discount.
- Online Purchase: Insurance companies save money when you buy online and often pass some of these savings on to you.
- Family Discount: You might receive a discount if you use the same insurance company as your children or grandchildren.
Specialized Insurance Policies for Seniors
While seniors can obtain car insurance from any company willing to insure them, a few companies specialize in policies for drivers over 50. They ensure their policies include as many applicable discounts as possible and provide specialized services.
The two major companies in this niche are Apia and Australian Seniors.
