Car insurance for seniors and pensioners

Average customer rating: 4.3/5
Written by Kenneth Young
Reviewed by Adrian Taylor
Updated March 19, 2024

Expert car insurance tips for seniors

Compare the Market’s car insurance expert, Adrian Taylor, has these tips for senior drivers looking to make the most of their car insurance.

Adrian Taylor
Executive General Manager – General Insurance

Find a policy that caters to mature drivers

Mature drivers can be considered safe and therefore a low risk for insurers. You could shave some of the costs if you take advantage of some of the restrictions and exclusions you can place on your insurance cover.

Switch policies any time

You don’t have to wait for your renewal notice to compare and switch car insurance. You can switch anytime. But be sure to check for any cancellation fees that might apply first. If you pay your car insurance premium in advance, your insurer may refund you for the remaining period of insurance.

Check for sign-up discounts

Many insurers offer discounts if you purchase online, but these may only apply to the first 12 months. This is why it pays to compare car insurance quotes every year to make sure you’re always on the best deal for you.

Consider increasing your excess to bring down your premium

If you want to raise the standard excess payment of your policy to reduce the premium, make sure you factor in if you’ll be able to afford to pay a higher excess amount when you claim.

What is the best car insurance for seniors and pensioners?

A happy senior couple riding in a convertible car.Everyone’s situation is different, so there’s no definitive answer on what the best car insurance policy is for seniors and pensioners. However, the driving habits of seniors and pensioners may mean that a low kilometre policy could be suitable if you drive less than a certain distance (e.g. under 15,000km) per year.

The type of car you drive can also influence the car insurance features you look for. For example, new cars will generally depreciate in value significantly in the first year of ownership, so you may find that agreed-value car insurance can provide better protection for newer cars than market value car insurance.

When deciding on the best car insurance policy for you, for complete peace of mind, always read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) to check what coverage a policy offers and whether it’s suitable for your needs.

Cost of car insurance for retirees

Do seniors pay more for car insurance?

How seniors can save on car insurance

Do I get a car insurance discount if I’m on a pension?

What is a pay-as-you-drive car insurance policy?

How do seniors’ drivers licences differ per region?

Each state has rules regarding senior drivers, and these regulations differ again depending on the type of licence (e.g. motorcycle licences). Once you reach a certain age, you’ll need to meet these conditions to drive on the road and potentially even to be covered under your policy.

N.B.: The information below refers specifically to cars and not other classes of vehicles, such as motorcycles or public vehicles like buses or taxis. The following is correct as of November 2023 but is subject to change.

Queensland (QLD)

New South Wales (NSW)



Western Australia (WA)

South Australia (SA)

Northern Territory (NT)


Important to know

What if my car is modified for disabled passengers?

Does comprehensive car insurance include roadside assistance?

Meet our car insurance expert, Adrian Taylor

Adrian Taylor
Executive General Manager – General Insurance

As Executive General Manager of General Insurance at Compare the Market, Adrian Taylor is passionate about demystifying car insurance for consumers, so they have a better understanding of what they’re covered for. Adrian’s goal is to make more information available from more insurers, to make it easier to compare and save.

1 Road deaths: 12 month total Australia (Table 4.2) – October 2023. Bureau of Infrastructure and Transport Research Economics, Department of Infrastructure, Transport, Cities and Regional Development, Australian Government. 2023. Accessed November 2023.

2 Safe Driving. Department of Transport, Queensland Government. 2023. Accessed November 2023.

3 Your licence from age 70. Transport for NSW, New South Wales Government. 2022. Accessed December 2023.

4 How ageing can affect driving. VicRoads, Department of Transport, Victoria State Government. 2022. Accessed December 2023.

5 Renew Your Licence. VicRoads, Department of Transport, Victoria State Government. 2022. Accessed December 2023.

Driving as you age. Transport Services, Tasmanian Government. 2020. Accessed November 2023.

7 Renew my driver’s licence (seniors 80-84). Department of Transport, Government of Western Australia. 2022. Accessed November 2023.

8 Fitness to drive. Department for Infrastructure and Transport, Government of South Australia. 2023. Accessed November 2023.

9 Medical fitness to drive. Northern Territory Government. 2023. Accessed November 2023.

10 Medical conditions. Access Canberra, ACT Government. 2023. Accessed November 2023.