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What Seniors In Australia Need To Know About Car Insurance
All licensed drivers in Australia, including seniors, are legally required to have auto insurance. There are some special considerations that seniors should take into account when securing auto insurance.
All licensed drivers in Australia, including seniors, are legally required to have auto insurance. There are some special considerations that seniors should take into account when securing auto insurance.
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First off, seniors must comply with certain driver’s license rules and restrictions. These vary from state to state in Australia, but basically affect drivers 75 years old and over. Drivers this age usually will have to get some medical clearance and pass certain driving tests to keep their license. Making sure you have complied with keeping a valid driver’s license is the first step, before choosing an auto insurance policy.
First off, seniors must comply with certain driver’s license rules and restrictions. These vary from state to state in Australia, but basically affect drivers 75 years old and over. Drivers this age usually will have to get some medical clearance and pass certain driving tests to keep their license. Making sure you have complied with keeping a valid driver’s license is the first step, before choosing an auto insurance policy.
Types of Auto Insurance Coverage
Compulsory Third Party (CTP): As the name implies, you must have at least this coverage. It covers your liability in the case of causing harm or death to other people while you are driving. It does NOT provide any protection for damages or loss to your car.
Third Party Property: This covers your liability for causing damages to other people’s property.
Fire and Theft: Covers your loss in cases of fire or theft of your car.
Comprehensive: This is the most popular and recommended for seniors. It provides cover for most causes of loss, especially to your car. Things like vandalism, storm damage and theft of personal property in the car are often included in a comprehensive policy.
Pre-Agreed Value of Car: This coverage will provide you with an agreed upon, predetermined value of your car – which you will receive if your car is declared a “total loss”. Without this, you will only receive “fair market value” of your car – which is usually less (perhaps way less). This coverage will cost you a higher premium and is not available from all insurance companies, but can give you some peace of mind.
Discounts
Senior Driver: Many companies have special discounts for drivers over 50 or 60.
“Part Time” Driver: If you use your car only in a limited fashion, as far as time and mileage driven, you may get a discount for this.
Good Driving Record: If you have many years of driving history with no or minimal claims, you should receive a discount for this.
Online Purchase: The insurance companies save money if you buy online and pass some of this savings to you.
Family Discount: If you use the same insurance company as your kids or grandchildren.
Specialized Insurance Policies for Seniors
While seniors can buy auto insurance from any company willing to insure them, there are a couple of insurance companies that specialize in drivers over 50. They do this by making sure their policies have as many applicable discounts as possible and providing specialized services.
The two major such insurance companies are Apia and Australian Seniors.
