Whether it’s to hold onto their independence, enjoy convenience or have some carefree adventures out on the road, Australians are increasingly driving well into their later years.1
Government figures show that just over 795,600 Australians aged 80 and over were still driving in 2025 – that’s more than double the number of veteran drivers in that age bracket who were behind the wheel in 2010.1
Drivers who clock up many years of motoring experience may also benefit from lower insurance premiums, especially once they reach their 50s and 60s.2 In fact, drivers over the age of 50 often pay some of the lowest average car insurance premiums in Australia,3 thanks to decades of driving experience and because they tend to avoid risky behaviour behind the wheel.2,4
On the other hand, as drivers move into their 70s and beyond, insurance costs for seniors and pensioners can start to creep up again,2 while new driver’s licence requirements and health checks may apply once you hit 75.2
Given Australia’s ageing population5 and the fact that more drivers are staying on the road well into their 70s and 80s,1 choosing the right car insurance for you later in life is becoming a greater consideration.
Whether you’re researching seniors car insurance for yourself, helping parents review their policy, or simply planning ahead, understanding how insurers assess ageing drivers can help make it easier to find the right cover.
For example, at what age might you qualify for senior car insurance, what types of car insurance for retirees are available, and how do car insurance costs change as you get older? And what are some key factors that older drivers should consider when choosing or renewing a policy?
To answer these questions, and more, we’ve put together this guide on how to find the best seniors car insurance for your needs. We’ll also explain which rules and restrictions currently apply for seniors holding a driver’s licence around Australia.
What age are you considered a senior driver in Australia?
While there’s no definitive answer to this, in some states and territories, once you reach the age of 75, you may need to have an annual medical assessment or a health review to show that you’re still fit to be behind the wheel.2,6
However, when it comes to car insurance, you may be considered a senior driver much earlier. If you have a good driving record, insurers may start to offer lower premiums for over 50s insurance,3 with prices typically reducing even further once you reach your 60s.2
What types of car insurance are there for seniors and pensioners in Australia?
If you’re over 50, 60 or older, you can generally access all types of general car insurance in Australia – Comprehensive, Third Party Fire & Theft and Third Party Only.
At Youi, we offer three different levels of general car insurance suitable for seniors. Here’s what they cover:
- Comprehensive car insurance. As the name suggests, this is our highest level of car insurance, covering accidental damage to your car and other people’s cars or property, even if the accident was your fault. It also covers your car if it’s intentionally damaged or stolen, or damaged by fire or some severe weather events such as storm, hail or flood.7,8
- Third Party Fire & Theft car insurance. This covers damage that your car causes to other people’s cars or property, and it also covers your car for theft or fire damage.8
- Third Party Property Only car insurance. This covers damage that your car causes to other people’s cars or property. However, it doesn’t cover damage to your own car.8
Does car insurance get cheaper as you get older?
How much you pay for car insurance will depend on a range of individual factors such as your driving and claims history, the make and model of your vehicle and how often you use it. But your age can also significantly influence your premium.
“Generally speaking, in Australia, car insurance does get cheaper as you get older and more experienced as a driver – but only up to a certain point,” explains Marni Jackson, Youi’s Head of Product – Vehicle & Lifestyle.
“Insurance pricing essentially follows a curve. Premiums start to drop after your mid-20s, stays relatively low throughout your middle-age years, bottom out between the ages of 60 and 69, and then can slightly increase again as you enter your later senior years.”
A key reason why the costs of car insurance for over 70s may gradually start to go up again is because – while you may be driving less at this age – the risk of being involved in an accident rises for seniors and pensioners.9
Road deaths for people aged 65 and older rose by 14.1% in the decade up to 2024, according to Australian government figures, with the greatest increase among Australians aged 65 to 74.10
How much does senior car insurance cost in Australia?
As car insurance is highly personalised, there’s no single “flat rate” for seniors, with your final quote depending on where you live, what you drive, and how much coverage you want. However, recent industry data can provide a snapshot of what older Aussies are currently paying when it comes to over 50s insurance, or car insurance for seniors over 60 or 70.
A January 2026 survey of average car insurance costs by CHOICE found drivers in Australia who are aged 60 to 69 pay the lowest average premiums – $1,270 per year. Drivers aged 50-59 were found to pay an average annual premium of $1,540, while drivers aged 70 and over pay an average annual premium of $1,328.2
Do pensioners get discounts on car insurance?
Youi doesn’t offer a specific pensioner car insurance discount; however, below we address some special considerations for older drivers that may help you find competitive pricing.
How to find the best auto insurance for seniors?
As we’ve seen, there’s no one-size-fits-all answer when it comes to locking down the best car insurance for the elderly – it depends on your age bracket, what you need and how you use your car.
“Spending some time researching the range of car insurance options available to older Australians could help you save some money if you’re looking for affordable car insurance for seniors,” says Jackson.
“Start by asking yourself what you need from an insurance policy. Could you afford to replace your car if it was stolen or written off, for example, or could you cover the cost of repairing someone else’s vehicle if you cause an accident? Your answers will help determine which level of cover makes most sense for your situation, whether it’s Comprehensive car insurance, Third Party Fire & Theft or Third Party Property Only car insurance.”
Here are four other steps to consider to help you effectively compare car insurance quotes for seniors and find your best fit.
Step 1: Use comparison tools
Online comparison sites can provide a quick overview of policies and prices. Just remember that not all sites are independent.11 Some may promote policies from insurers that pay them the highest commission ahead of others that might genuinely suit your circumstances better and cost less,11 so it can be worth doing some additional research directly with insurers too.
Step 2: Check for comparable cover
As well as making sure each quote is for the same type of policy or level of cover, compare the exclusions and inclusions.12 For example, does every Comprehensive car insurance policy cover damage caused by severe weather and vandalism? And is roadside assistance included as standard or for an extra fee?12
Step 3: Double-check the details
Seniors car insurance premiums depend on a variety of factors, including how you use your car, who’ll be driving it, and where it’s usually parked.12 Make sure you use the same information to generate each quote, to get a more accurate picture of potential costs.
Step 4: Use the same excess
Choosing a higher excess, which is the amount you pay when you make a claim, may result in a lower premium12 – so when you’re comparing quotes, make sure the excess amount selected is consistent each time.
What else should older drivers think about when choosing car insurance?
When you enter your senior years, your lifestyle and driving habits can often undergo a significant shift. You might retire and no longer make the daily work commute, drive shorter distances or buy a different type of vehicle. Being an older driver also means you’re likely to have decades of driving experience under your belt.
“Because of this, it’s important to re-evaluate your car insurance and make sure you still have adequate cover for your changing needs,” says Jackson.
For example, it might be more important to you now to find an insurer who prioritises award-winning customer service and who can offer you extra care and assistance when you need it most. Whether that’s offering support to help simplify the car insurance claim process, or having access to a quick and effective customer service line when you have a question – like at Youi, where we strive to answer phone calls in around 30 seconds.13
Roadside assistance is another key feature that may appeal to older drivers seeking the peace of mind of around-the-clock help in the event of a flat tyre, fuel emergency or mechanical breakdown. Youi’s Roadside Assist comes as standard with all our Comprehensive car insurance policies.14
How can seniors save on their car insurance?
If you’re retired or living on a fixed pension, smart budgeting may be a priority. Fortunately, there are several strategies that may help to lower insurance costs for the elderly. Car insurance premiums might be lowered if you:2,6
- Shop around as the cost of car insurance can vary widely.
- Ask insurers if they offer low mileage car insurance for seniors if you don’t drive very often or drive fewer kilometres each year. At Youi, if you rarely use your car, your premium is likely to be lower than if you were behind the wheel all day, every day.
- Keep your car in a secure location overnight, such as a locked garage, if you can.
- Restrict the age of people who drive your car – allowing people under the age of 25 to drive your car may hike up premiums.
- Consider taking out Third Party Fire & Theft or Third Party Property Only cover instead of Comprehensive car insurance if your car is older and of lower value.
- Increase your car insurance excess – but remember, you’ll then pay more if you have to make a claim.2,6
If you’re due to renew your seniors car insurance policy, or you simply want to review your current policy to ensure it still suits your needs and current lifestyle, consider starting a quote online with Youi, or call us on 13 9684.
1 Source: Australian Government Bureau of Infrastructure and Transport Research Economics – Australian Infrastructure and Transport Statistics Yearbook 2025, December 2025
2 Source: CHOICE – Best car insurance for seniors, February 2026
3 Source: Canstar – How much does car insurance cost?, April 2026
4 Source: Canstar – Compare car insurance for drivers in their 50s, April 2026
5 Source: The University of Sydney – Confronting ageing: the talk Australia has to have, October 2023
6 Source: Canstar – Car insurance for seniors & pensioners, April 2026
7 Available with Comprehensive policies only. Exclusions and limits may apply. Where you have increased your cover or reduced your excess within 72 hours of a flood, storm, hail or bushfire occurring, cover will be limited to the amount that was effective prior to the change. Loss, damage or legal liability caused by, resulting or arising from flood, storm, hail or bushfire during the first 72 hours of your policy first being purchased is excluded unless certain conditions apply. For full details, see the PDS, TMD and your policy schedule.
8 Exclusions, limits and additional fees may apply. For full details, see the Car Insurance PDS.
9 Source: ABC News – Driving can be challenging for older road users – should they retake tests?, December 2024
10 Source: Australian Government Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts – Road safety of older people, October 2025
11 Source: CHOICE – The trouble with insurance comparison sites, October 2024
12 Source: Moneysmart – Choosing car insurance
13 Refers to average call answer times for Customer Services, excluding calls to Youi Roadside Assist.
14 Youi Roadside Assist available with Comprehensive policies only. Exclusions, limits, waiting periods and additional fees may apply. Cover not available within 24 hours of taking out or upgrading to Comprehensive cover. Product issued by Youi Pty Ltd. Consider our PDS when deciding if the product is right for you. PDS, T&Cs & TMD available at youi.com.au.
