Car insurance costs don’t stay flat as you get older. For drivers in their 60s, premiums tend to hit their lowest point — the average 60-year-old in Australia pays around $1,934 annually. But that figure starts climbing again near age 70, when the average rises to about $2,089 per year. Insurers point to changes in vision, hearing, reflexes, and cognition as reasons for the increase. If you’re driving an older car, the calculation shifts even more — you’re weighing the value of the vehicle against the cost of full coverage. Here’s what you actually need to know.
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This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.
That jump from $1,934 to $2,089 isn’t huge, but it signals a trend worth watching. The national average sits at $2,168, meaning drivers in their 60s are paying about 11% less than the typical Australian motorist. By 70, you’re back near the middle of the pack. For anyone driving an older car, the question becomes whether comprehensive cover still makes financial sense — or whether a cheaper third-party policy does the job. I’ve seen people stick with full coverage on a car worth $3,000, paying $800 a year in premiums, and that math rarely works out. If you’re looking to compare options, a car insurance comparison tool can help you see what different providers charge for the same level of cover.
The central concept here is agreed value versus market value — the two main ways insurers calculate what they’ll pay if your car is written off.
With an older car, market value can drop fast. A policy based on market value might leave you with far less than you expect after a claim. Agreed value gives you certainty, but it usually costs more in premiums. What I’d do is check the current resale value of your car first — if it’s under $5,000, third-party fire and theft often makes more sense than comprehensive, especially if you can handle a replacement out of pocket.
What changes when you insure an older car past 60
Insurance companies don’t see all older drivers the same way. The data shows a clear split: drivers in their 60s are considered low-risk, while those over 70 face higher premiums. That distinction matters when you’re deciding how much cover to buy for an older vehicle.
The average 60-year-old pays $1,934 annually — about $234 less than the national average. Insurers view this group as having decades of driving experience and a lower likelihood of taking risks on the road. But around age 70, the average climbs to $2,089. Companies cite changes in vision, hearing, reflexes, and cognition as risk factors for accidents. It’s not a dramatic jump, but it’s enough to shift the balance on whether comprehensive cover is worth the cost.
For someone driving a 15-year-old car worth $4,000, paying $800 a year for comprehensive cover means you’re spending 20% of the car’s value annually. Over three years, that’s more than the car is worth. Third-party fire and theft, which covers damage you cause to others plus fire and theft of your own vehicle, typically costs half as much. The trade-off is that if you’re at fault in an accident, you pay for your own repairs out of pocket. That’s a risk worth weighing against the premium savings.
What I tend to notice is that people overlook the non-financial side of claims. If you’re injured and can’t drive, how do you get to appointments? Who handles household chores? Some policies include benefits that address those gaps, and for older drivers, that can be more valuable than a slightly lower premium. A roadside assistance kit is a practical addition if your policy doesn’t include roadside cover — it won’t replace a tow truck, but it can help with minor issues.
Common mistakes older drivers make with car insurance
Sticking with comprehensive cover on a low-value car
This is the most common error I see. If your car is worth $3,000 and you’re paying $700 a year for comprehensive insurance, you’re effectively pre-paying for a replacement every four years. Third-party fire and theft covers damage to other people’s property and protects against theft or fire damage to your own car — usually for half the price. The risk is that you’ll need to cover your own repairs if you cause an accident. But if you can afford to replace the car yourself, the savings add up fast.
Not shopping around after turning 65 or 70
Rates change as you age, but many drivers stay with the same insurer for years. The average 70-year-old pays $2,089, but that figure varies widely between providers. Geico, for example, offers below-average rates for older drivers plus discounts for completing a defensive driving course. Progressive is often better for drivers with accidents on their record. If you haven’t compared quotes in the last year, you’re almost certainly overpaying. Comparison shopping at least once a year is the single most effective way to keep premiums in check.
Ignoring policy features that matter after an accident
Price isn’t everything. Some policies include benefits that become critical after a crash. The Hartford’s RecoverCare pays up to $2,500 for services like transportation and housekeeping. Geico’s Prime Time contract guarantees renewal for drivers 50 and over, protecting you from being dropped after a single accident. A cheap policy that lacks these features could cost you more in the long run if you need to claim. Read the product disclosure statement — don’t just compare premium figures.
Choosing market value over agreed value on an older car
Market value policies pay what the insurer thinks your car is worth at the time of the claim, which can be far less than you expect. Agreed value locks in a payout amount from day one. For an older car that’s depreciated significantly, the difference can be thousands of dollars. The trade-off is that agreed value policies usually cost more. But if you’d struggle to replace the car with the market value payout, the extra premium is worth it.
→ Scroll right to see all columns
| Provider | Best For | Key Feature for Older Drivers |
|---|---|---|
| Geico | Affordability | Prime Time guaranteed renewal; defensive driving discount for 50+ |
| The Hartford | Post-accident help | RecoverCare up to $2,500; AARP member policies |
| Travelers | New cars | New car replacement within first two years |
| Progressive | Drivers with accidents or bad credit | Competitive rates for higher-risk profiles |
| Auto-Owners | Customer service | High satisfaction ratings for claims handling |
| USAA | Military members | Exclusive rates and benefits for eligible members |
How to choose the right cover for your older car
Assess your car’s current market value first
Before you pick a policy, find out what your car is worth. Use a site like RedBook or check recent sales of similar models. If the value is under $5,000, comprehensive cover is hard to justify. Third-party fire and theft becomes the sensible option. If the car is worth more than $10,000, comprehensive cover with agreed value gives you proper protection. For anything in between, weigh the annual premium against what you’d pay to replace the car yourself.
Compare at least three providers annually
Rates change, and so do your circumstances. Set a reminder to compare quotes every year around your renewal date. Look beyond the premium — check the excess, the claims process, and any age-related discounts. Geico’s defensive driving course discount can knock a meaningful amount off your premium. The Hartford’s AARP-affiliated policies include benefits you won’t find elsewhere. A car insurance comparison worksheet can help you track what each provider offers side by side.
Decide between agreed value and market value
For an older car that’s depreciated steadily, market value can leave you short. Agreed value costs more but gives you certainty. If you have a car loan, your lender will likely require comprehensive cover with agreed value. If you own the car outright and it’s worth less than $5,000, market value is usually fine — the payout difference is small enough that the premium savings matter more.
Look for age-specific discounts and benefits
Not all insurers advertise these, but they exist. Geico offers a discount for drivers 50 and older who complete a defensive driving course. The Hartford’s RecoverCare benefit is unique to AARP members. Some Australian providers offer age-based discounts on comprehensive policies. Ask each insurer directly what discounts apply to older drivers — don’t assume they’ll volunteer the information.
Consider telematics if you drive less now
If you’re retired or driving fewer kilometres, a telematics policy that tracks your driving habits could lower your premium. These policies reward low mileage and safe driving with lower rates. The trade-off is privacy — the insurer monitors your speed, braking, and time of day. For older drivers who drive cautiously and infrequently, the savings can be substantial. It’s worth comparing a telematics quote against a traditional policy to see which works out cheaper.
Frequently asked questions
Does car insurance cost more after age 70? ▾
Is comprehensive insurance worth it for a car worth $3,000? ▾
What is the difference between agreed value and market value? ▾
Can I get car insurance if I’m over 80? ▾
What discounts are available for older drivers in Australia? ▾
Should I drop comprehensive cover when my car is paid off? ▾
The smartest move is to match cover to car value, not age
The data shows that premiums dip in your 60s and rise again after 70, but that doesn’t mean you should automatically downgrade your cover. The real decision hinges on what your car is worth and whether you can afford to replace it out of pocket. For a car worth under $5,000, third-party fire and theft usually wins. For anything above that, comprehensive cover with agreed value gives you proper protection. The insurers that cater to older drivers — Geico, The Hartford, Progressive — offer features that go beyond price, like guaranteed renewal and post-accident support. Compare quotes annually, read the fine print, and let the car’s value guide your choice, not your age.
Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.
If this was useful, you might also want to read Australia’s Most and Least Expensive Cars to Insure — See the List.
Sources and Further Reading
Maximise Your No-Claim Discount — Practical tips to protect your discount and lower premiums over time.
Repair Cost Reimbursement Tips — What to do when your insurer’s repair estimate doesn’t match the workshop quote.
Forbes Advisor (2024). Best Car Insurance for Seniors. 🔗
CNBC Select (2024). Best Car Insurance for Older Drivers. 🔗
Canstar (2024). Comprehensive Car Insurance Guide. 🔗
