Car insurance for every age and stage, from teenagers to seniors
Published September 2024 | 5 min read
Words by Sabrina Rogers-Anderson
Confused about the best insurance for a teenage driver and whether seniors pay higher premiums? Our guide to car insurance at every age will help answer your questions.
From choosing the right level of cover to getting the best price, shopping for car insurance can be confusing. And just when you think you have it all figured out, you need to add a young driver to your policy or increase your coverage for your new car.
Here’s what you need to know about choosing the best car insurance for all stages of life – from teenagers to seniors – plus simple hints that could save you hundreds.
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Car insurance basics
There are three main types of car insurance with different levels of cover:
Type | Damage to your car | Damage or loss of your car due to theft or fire | Damage to other cars and property | Compensation claims for injuries or death caused to third parties |
Compulsory third-party (CTP) | No
|
No | No | Yes |
Third-party property | No | No | Yes | No |
Comprehensive | Yes | Yes | Yes | No |
CTP insurance, which is also known as Green Slip insurance, is compulsory and covered in the cost of your car registration, except in New South Wales where it must be purchased separately.
A car insurance premium is the amount you pay each year or in monthly instalments for car insurance. The higher your coverage, the higher your premium will be.
A car insurance excess is the amount you may have to pay out of your own pocket when you make a claim.
Car insurance for a teenager
Due to the increased risk of incidents in young drivers, especially males, car insurance providers charge higher premiums for this age group. According to the Queensland Government, drivers aged 16 to 24 are 60% more likely to be in a serious car crash than drivers aged 25 to 59, and 80% of young drivers involved in fatal crashes are male. The car insurance excess also tends to be higher for young drivers.
How to save money on car insurance for young drivers
While a comprehensive car insurance policy offers the best level of protection for young drivers, not everyone can afford it. Here are a few ways to save.
- Get family car insurance: Before you hand over your keys to your learner driver or P-plater, contact your insurer to find out if they’re covered by your policy or you need to add them. If your child will be driving your car regularly, it’s generally cheaper to add them to your policy than to take out a separate one.
But be aware that costly extra excesses, including the age excess (usually for drivers under 25) and inexperienced driver excess (usually for drivers over 25 who have had their licence for less than two years), may apply if you need to make a claim. Multi-car insurance policies are also available for families with more than one vehicle. - Take out third-party cover: If you decide that a separate insurance policy is best for your teen and they aren’t driving a new car that needs comprehensive insurance, cheaper third-party cover could be enough.
- Buy car insurance online: Shop around for the best price and take advantage of online discounts.
- Increase your excess: Some insurers allow you to choose a higher car insurance excess in exchange for a lower premium, but your excess may already be high as a young driver. Consider whether you’ll be able to afford the excess amount if you need to make a claim.
- Pay your premium annually: Many insurers charge more if you pay monthly.
- Choose a reliable car: Expensive or high-performance cars can cost more to insure. Choosing a reliable model with safety features may keep your premiums down.
- Avoid modifications: Modifying your car can increase the cost of your insurance.
- Drive safely: Any accidents, insurance claims or fines will drive your premium up – even if you weren’t at fault.
- Park in a locked garage: You can reduce your car insurance costs by parking in a secure garage instead of on the street.
- Install security devices: An anti-theft device such as an immobiliser or an alarm may help you save on your premium.
- Take a defensive driving course: Some insurers will offer a discount if you complete a recognised defensive driving course.
Car insurance for adults
When you turn 25, your premium and excess may go down if you have several years of safe and incident-free driving under your belt. But lower rates aren’t a given, so make sure to shop around.
It's important to reconsider your level of cover if you buy a new car or start a family. Comprehensive car insurance will ensure your expensive or essential asset is fully covered in the case of an incident.
Car insurance premiums and excesses
It’s recommended to research and find an insurance policy that offers a competitive price or suits your current situation, rather than renewing on policies that may be getting expensive or not provide the right cover anymore. It’s also worth remembering that insurance costs change year on year, according to claims and other seasonal impacts.
Excess can vary depending on the insurer and whether you choose to pay a low or high amount of excess.
How to save money on car insurance
There are several ways to save money on your car insurance policy.
- Review your policy annually: Renewal premiums are often higher than those for a new policy, so it pays to get quotes from at least three insurers once a year to make sure you’re getting the best deal. Paying your policy annually rather than monthly can also save you money.
- Buy online: You may find online-only discounts.
- Only get the cover you need: If your car is old or you could live without it, third-party cover could be sufficient.
- Consider increasing your excess: Some insurers will reduce your premium if you take out a higher excess.
- Insure your car for market value: You can generally insure your car for its market value (how much your car would have sold for at the time of the claim) or an agreed value (a fixed amount you decide on with your insurer). While choosing market value means you don’t know how much you’ll get when you claim, it generally comes with a lower premium.
- Enquire about discounts: Ask your insurer whether they offer discounts for those who don’t drive a lot (also known as ‘drive less pay less’ or ‘pay as you drive’), installing anti-theft devices, parking your car in a secure garage or bundling your car insurance with other types of insurance.
Seniors car insurance
It’s a common misconception that seniors pay more for their car insurance because they’re considered to be at higher risk of accidents.
Car insurers take a wide range of factors into account when calculating premiums for seniors, including age, driving history, type of car and location. As always, it pays to shop around.
How to save money on car insurance for seniors
Many of the money-saving tips outlined above remain the same as you get older, including buying online, getting only the level of cover you need, reviewing your policy annually and increasing your excess in exchange for a lower premium.
But here are a few extra tips that can help seniors get the best price on their car insurance.
- Check for discounts: In addition to discounts for anti-theft devices, secure parking and insurance bundling, some insurers may also offer discounts for seniors.
- Restrict younger drivers: You can save on your premium by not allowing younger people, such as your children or grandchildren, to drive your car.
- Consider regular policies: Some insurers offer low-kilometre discounts on regular policies.
- Pay by distance: Another option is pay per kilometre car insurance, which allows you to pay only for the actual number of kilometres you drive.
Finding the right car insurance for you
Your car insurance needs and costs will change over the course of your lifetime, so it’s worth re-evaluating your policy once a year to make sure it’s still right for you and you’re getting the best price.
We understand the importance of safeguarding your assets against the unexpected. Which is why we’re now offering HCF Car Insurance for your car, ute or SUV. Get a quote today*.
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IMPORTANT INFORMATION
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