Money
Car insurance: The discount blindspots over-50s drivers aren’t checking
Finance check: are you overpaying for your car insurance premium? Discover these clever insurance hacks for drivers over 50s.
By Robyn Peña-Lopez
You've got decades of cautious driving under your belt, you’re barely out on the road during peak hour, but are you still paying premiums better suited to a P-plater?
Experience may come with age, but unfortunately, so do overpriced premiums. If you think that you’re paying too much for car insurance, you probably are.
It’s a fact that insurance providers charge higher premiums for older drivers due to various factors, primarily involving potential health conditions. There’s also the matter of an extensive loyalty tax being paid out by older drivers who have been auto-rewnewing with the same insurance company for years.
Enough already – it’s definitely time to check your blindspot. Here are 5 moves to help you pay less and drive smarter:
1. Price check: compare premiums
Many providers still use pricing algorithms that are outdated, particularly for retirees or part-time drivers. In fact, in 2023 the Australian Securities and Investments Commission (ASIC) called out general insurers to remove unnecessary pricing complexity.
“This systemic failure by insurers to deliver on their pricing promises has seen more than 5.6 million consumers overcharged $815 million for their insurance”, said ASIC Deputy Chair Karen Chester. Whether that report actually resulted in reduced premiums is questionable.
But you can reduce premiums all on your own by using a free comparison site like iSelect or Compare the Market to help identify better offers quickly. Although it may not list every insurer, you could shave some of the costs on your current insurance cover.
2. Don’t rely on auto-renewals
I’ve always thought years of safe driving and customer loyalty would count for something – but in the current insurance game that’s likely not the case.
Automatic renewals quietly roll your policy along year after year, often with higher premiums and no added benefits. Yup, you heard that right.
This is why shopping around and actively comparing is important to ensure that you’re not missing out on insurance discounts that you’re entitled to.
Read also: Loyalty tax: Whatever happened to rewarding customer loyalty?
3. Hello, low-kilometre policies
Are you driving less due to retirement, working from home, or are there other changes in your driving habits? If you’re driving less than you used to, many insurers offer a policy tailored to people driving less kilometers per year and it’s often at a substantial discount.
Don’t want to pay a flat premium? You can also opt in for usage-based insurance (UBI) where you get charged based on your actual usage and risk level. Note that this uses a telematics technology that tracks your driving habits – so spontaneous trips can push your premium back up!
Just be sure to accurately estimate your annual mileage if you want to lower your car insurance premiums to avoid policy cancellation or reduced liability in the event of a claim.
4. Be proactive: ask for a tailored coverage
Depending on your insurance provider, some offer discounts tailored for drivers over 50s. These are not always advertised, so it’s practical to ask and not wait for them to offer.
There are plenty of better deals for drivers over 50. Some of these may include reduced excesses, lower premiums, and even extra coverage for older drivers with clean driving records.
5. Bundle and save
If you have multiple vehicles and a home insurance policy, consider bundling them with the same insurer to unlock discounts. This not only simplifies your policy management, but could also bring substantial savings:
Multi-policy discounts
- Discount range: 5-25% (depending on the insurer & policies)
- These are offered by your insurer if you have 2 or more eligible policies including home, car, contents, and other types of insurance.
Multi-vehicle discounts
- Discount range: 6-10% (for 2 vehicles, depending on the insurer & policies)
- You can typically group together vehicle-related policies such as motorcycle, trailer, boat and caravan. Discounts are commonly available for vehicles that are garaged at the same address.
It pays to shop around. Focus on the overall value first as a multi-policy discount won’t mean much if the base price is higher to begin with.
Don’t forget: Seniors Card discounts
If you’re a Seniors Card holder, you’re also entitled to more savings and discounts, including on car insurance. Here is an overview of the discounts you can enjoy according to your state:
Australian Capital Territory
- 10% off motor vehicle registration
- 28% off discount on electric vehicle registration
New South Wales
- 10% off standard registration fees
Northern Territory
- $55 off annual vehicle registration
South Australia
- 50% off for your first vehicle and trailer and driver’s licence
Queensland
- 50% off for pension concession card holders
Tasmania
- $52 off annual vehicle registration
Victoria
- 50% off annual vehicle registration for eligible concession cardholders
Western Australia
- 50% rebate on vehicle licence fees for Commonwealth Seniors Health Care cardholders
- 75% off discount on vehicle licence fees for eligible vehicles (Concessions for Classics/C4C)
Check on your relevant Seniors Card website to view other vehicle-related discounts, too.
More here: 11 impressive things you might not know your Seniors Card can do
Feature image: Canva/RDNE Stock project
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