AVERAGE COST OF CAR INSURANCE FOR A 70-YEAR-OLD IN AUSTRALIA

1. KEY TAKEAWAYS: AT A GLANCE

Key Insight	Summary
Average annual premium for 70+	$1,328 for comprehensive cover (as of January 2026)
Rank among age groups	Second-lowest of all age groups in Australia
Most affordable age group	Drivers aged 60-69 ($1,270 average)
Premium trend after 70	Slight increase due to higher injury risk and potential health factors
Best tip to save	Compare quotes from multiple providers annually – rates can vary significantly
Recommended provider types	Senior‑specialist insurers like Apia, Australian Seniors, National Seniors Australia

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2. AVERAGE CAR INSURANCE COST FOR A 70‑YEAR‑OLD IN 2026

If you are a driver aged 70 or older in Australia, you pay the second‑cheapest average car insurance premiums of any age group in the country. Based on a comprehensive analysis of 221,677 quotes collected in January 2026:

• Drivers aged 70+: Average comprehensive premium $1,328 per year

• Drivers aged 60-69: Average comprehensive premium $1,270 per year (the absolute lowest)

• Drivers under 21: Average comprehensive premium $3,610 per year (nearly three times higher)

This data is sourced from CHOICE, Australia's leading not‑for‑profit consumer advocacy group, and reflects a market‑representative sample across all major insurers.

Other recent studies confirm similar figures:

• A 2025 report found drivers 70 and over pay an average of $1,248 per year

• Another 2025 analysis placed the average at $1,285

• The Mozo Car Insurance Report 2024 found drivers 70+ pay $1,222 compared to $3,552 for drivers under 21

The bottom line: While your premium may be slightly higher than it was in your 60s, it remains remarkably affordable compared to younger drivers.

3. HOW PREMIUMS CHANGE WITH AGE: A COMPLETE PICTURE

The following chart shows average annual comprehensive car insurance premiums by age group in Australia (January 2026 data):

Age Group	Average Annual Premium
17‑20 years	$3,610
21‑24 years	$2,557
25‑29 years	$2,118
30‑39 years	$1,942
40‑49 years	$1,790
50‑59 years	$1,540
60‑69 years	$1,270
70+ years	$1,328

Source: CHOICE analysis of 221,677 quotes, January 2026

Key observations:

• Premiums decrease steadily from age 17 through age 69 as drivers gain experience and demonstrate safer driving habits.

• At age 70, premiums increase slightly (by approximately $58 or 4.6% compared to the 60‑69 age group).

• Despite this small increase, 70+ drivers still pay far less than any age group under 50.

• Drivers aged 70+ pay approximately 63% less than drivers aged 17‑20.

4. WHY DO PREMIUMS INCREASE SLIGHTLY AFTER 70?

Insurance companies use sophisticated algorithms that assess risk based on historical claims data. While drivers aged 60‑69 have the lowest claims frequency, premiums start to rise again after age 70 for several reasons:

4.1 Higher Injury Severity

Older drivers are more likely to be injured or killed if they are involved in an accident. According to the Australian Institute of Health and Welfare, people aged 65 and over have the highest rate of injury caused by transport‑related accidents of any age group. Even if an older driver causes no more accidents than a middle‑aged driver, the claims cost is typically higher due to medical expenses and longer recovery times.

4.2 Age‑Related Health Conditions

Drivers over 60 are statistically more prone to health conditions that can affect driving ability, including impaired vision, slower reaction times, hearing loss, and sudden medical events such as heart or brain issues. These factors increase the perceived risk for insurers.

4.3 Increased Frailty

The human body becomes more vulnerable to injury with age. A minor collision that might cause only vehicle damage for a younger driver can result in significant injury for an older driver, leading to higher claims payouts.

4.4 Medical Disclosure Requirements

In most states, drivers aged 75 and over must undergo annual medical assessments to maintain their licence. Some conditions (such as dementia or other degenerative neurological conditions) can make a driver ineligible for insurance coverage.

Important note: Despite these factors, the premium increase after 70 is relatively modest compared to the dramatic drop experienced throughout earlier decades. Insurers still value the decades of safe driving experience that most seniors possess.

5. STATE-BY-STATE VARIATIONS

Car insurance premiums vary significantly depending on where you live. According to the Mozo Car Insurance Report 2024, average premiums by state are:

State/Territory	Average Annual Premium
Victoria	$2,139 (highest)
New South Wales	$1,994
Northern Territory	$1,892
Western Australia	~$1,530
Queensland	~$1,530
South Australia	$1,515
Australian Capital Territory	~$1,540
Tasmania	$1,301 (lowest)

Source: Mozo Car Insurance Report 2024

Why the variation? Premiums are higher in states with:

• Higher traffic density and congestion (Victoria, NSW)

• Higher accident rates

• Higher vehicle theft rates

• Higher repair costs

For a 70‑year‑old driver in Victoria, you can expect to pay significantly more than a driver with the same profile in Tasmania. This reinforces the importance of shopping around – what works for a driver in one state may not be the best deal in another.

6. COMPREHENSIVE vs. THIRD‑PARTY COVER FOR SENIORS

Understanding your coverage options can save you hundreds of dollars per year.

Coverage Type	What It Covers	Typical Annual Cost (70+)	Best For
Comprehensive	Damage to your car + damage to others' cars + theft + fire + vandalism + personal injury	$1,200‑1,500	Newer or valuable vehicles (worth >$5,000‑$10,000)
Third‑Party Property Damage	Damage to other people's cars or property only (not your own car)	$350‑670	Older cars with low market value
Third‑Party Fire & Theft	Same as above + fire damage and theft of your vehicle	$400‑800	Mid‑value vehicles where theft is a concern
Compulsory Third Party (CTP)	Personal injury to others (included with registration in most states)	Varies by state	Mandatory – cannot drive without it

Recommendation for most 70‑year‑olds:

• If your car is worth more than $5,000‑$10,000, comprehensive insurance is usually the best value.

• If your car is older and worth less than $5,000, consider switching to third‑party property damage. The annual savings of $800‑$1,000 may outweigh the risk of losing a low‑value vehicle.

7. TOP INSURANCE PROVIDERS FOR AUSTRALIAN SENIORS

Several insurers specialise in covering drivers aged 50 and over. These providers often offer tailored products, better customer service, and competitive pricing for senior drivers.

7.1 Senior‑Specialist Insurers

Provider	Underwriter	Key Features
Apia	Suncorp (self‑underwritten)	Established 30 years ago; part of Suncorp; offers monthly payments at no extra cost
Australian Seniors	Hollard	Founded 1998; car insurance underwritten by Hollard; pay‑as‑you‑drive discounts available
National Seniors Australia	Allianz	Non‑profit member organisation founded 1976; car insurance backed by Allianz; monthly payment option at no extra cost

7.2 Mainstream Insurers with Good Senior Options

Provider	Notes
Allianz	Offers three levels of cover; good driving history can lower premiums
AAMI	Low‑kilometre discounts available for seniors who drive less
Budget Direct	Often competitive on price; worth comparing
Suncorp	Online purchase discounts available
RAA (South Australia)	Member loyalty savings available
RACV (Victoria)	Monthly payment option at no extra cost

7.3 CHOICE's Top Performers

CHOICE's independent review of over 60 comprehensive policies identified several top‑performing insurers for value and coverage. While specific rankings change annually, CHOICE recommends:

• Avoiding policies from Bupa, Huddle, AHM, Suncorp Comprehensive Advantages, CGU, and Kogan due to poor value or low coverage scores

• Shopping around rather than automatically renewing with your current insurer – loyalty rarely pays in Australian car insurance

Important: The best insurer for you depends on your specific circumstances: where you live, what car you drive, your driving history, and your annual kilometres.

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8. PROVEN STRATEGIES TO LOWER YOUR CAR INSURANCE PREMIUM

Here are the most effective ways for drivers aged 70+ to reduce their car insurance costs in 2026.

8.1 Compare Quotes Annually (Most Important)

The single most effective way to save money is to shop around every year. Loyalty to one insurer rarely results in the best price. Comparison websites and independent reviews (like CHOICE) can help you identify the most competitive options.

"The sure‑fire path to a lower premium is simple: collect quotes from more than one provider, tailor cover to your real risk profile, keep your driving record squeaky‑clean and stack the discounts insurers prefer to keep quiet." — National Cover Insurance

8.2 Use a Senior‑Specialist Insurer

Providers like Apia, Australian Seniors, and National Seniors Australia specifically target the 50+ market and often offer better pricing for older drivers than generalist insurers.

8.3 Increase Your Excess (Deductible)

Raising your excess (the amount you pay when you make a claim) can significantly lower your annual premium.

• Increasing your excess from $600 to $900 can reduce premiums by 10‑20%

• Caution: Ensure your excess remains affordable – you must be able to pay it if you need to claim.

8.4 Reduce Your Annual Kilometres (Pay‑As‑You‑Drive)

If you no longer drive to work or take fewer long trips, you may qualify for low‑kilometre discounts.

Several insurers offer pay‑as‑you‑drive discounts for low kilometres, including:

• AAMI, Apia, Australian Seniors, Budget Direct, Coles, GIO, Suncorp, Woolworths Everyday

• Huddle's Pay As You Drive Cover can save up to 30% compared to their regular comprehensive cover if you drive 15,000km or less per year

Not all insurers advertise their low kilometre discount, but it's always worth asking.

8.5 Restrict Younger Drivers

If you restrict your policy to drivers above a certain age (for example, excluding drivers under 25), insurers may offer a lower premium because younger drivers are statistically more likely to be involved in accidents.

8.6 Park in a Locked Garage

Where you park your car matters. Keeping your car in a locked garage rather than on the street can reduce your premium by lowering the risk of theft, vandalism, and weather damage.

8.7 Mention Your Seniors Card

If you have a Seniors Card, mention it when getting quotes. Some insurers offer discounts for Seniors Card holders, including RAA and Australian Seniors.

8.8 Pay Annually Instead of Monthly

Many insurers charge a fee for monthly payment plans (often 3‑8% extra). If you can afford to pay your annual premium upfront, you will save this additional cost.

However, some insurers allow monthly payments at no extra cost, including:

• Allianz, CGU, National Seniors, NRMA, RAA

8.9 Bundle Policies (Home + Car)

If you also need home or contents insurance, bundling both policies with the same provider can save you up to 15%.

8.10 Maintain a Clean Driving Record

Each year you drive without making a claim builds your no‑claims bonus, which can significantly reduce your premium. Many insurers reward multiple years of claim‑free driving with substantial discounts.

8.11 Remove Unnecessary Optional Covers

Review your policy and remove optional extras you don't need, such as:

• Hire car after theft or accident

• Roadside assistance (if you already have it through another provider)

• New car replacement (for older vehicles)

Dropping these add‑ons can reduce your premium without affecting essential coverage.

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9. IMPORTANT LICENSING REQUIREMENTS FOR DRIVERS OVER 75

Once you turn 75, additional requirements may apply depending on which state or territory you live in. These requirements can affect your ability to obtain or maintain car insurance.

State/Territory	Requirement for Drivers 75+
New South Wales	Annual medical assessment + on‑road driving assessment every 2 years
Victoria	No automatic medical forms, but legal obligation to notify licensing authority of any condition affecting driving
Queensland	Annual self‑assessment medical form required from age 75
Western Australia	Medical assessment required at 80+
South Australia	Medical certificate required from age 75
Tasmania	Medical assessment required at 80+
Australian Capital Territory	Medical assessment required at 75+
Northern Territory	No automatic medical forms, but legal obligation to notify of any condition affecting driving

Key implications for insurance:

• Failure to disclose a medical condition that could affect your driving may void your insurance coverage.

• If you have been diagnosed with dementia or a degenerative neurological condition, you may be ineligible for a driver's licence and therefore ineligible for car insurance.

• Always notify your insurer immediately of any new medical diagnosis that could impact your driving ability.

10. KEY STATISTICS AND TRENDS IN 2026

10.1 Gender Differences

The gap between male and female premiums narrows with age, but never completely disappears:

• Males under 20 pay approximately 30% more than females of the same age

• Males aged 70+ pay approximately 10% more than females of the same age

• Nationwide average: Male drivers pay $1,849 vs. female drivers $1,585 (17% difference)

10.2 Electric Vehicle Premiums

Electric vehicles cost significantly more to insure than petrol vehicles:

• Electric vehicle average premium: $2,767 per year

• Petrol vehicle average premium: $1,597 per year

• Difference: 73% higher for EVs

If you are considering purchasing an EV as a senior driver, factor in the substantially higher insurance cost.

10.3 Premium Inflation

Car insurance premiums have risen significantly across all age groups:

• Average premiums increased by 16% to $1,717 in 2024 compared to the previous year

• This aligns with the ABS‑reported 14‑16% insurance inflation across all policy types

For senior drivers, this means even if your risk profile hasn't changed, your premium may have increased due to broader economic factors.

11. FREQUENTLY ASKED QUESTIONS

Q1: Is car insurance more expensive at age 70 than at age 69?

A: Yes, slightly. The average premium increases from approximately $1,270 (60‑69 age group) to $1,328 (70+ age group) – a difference of about $58 or 4.6%. However, this is still dramatically cheaper than premiums for drivers under 50.

Q2: Can I be denied car insurance because of my age?

A: No. Australian insurers cannot refuse to insure you solely because of your age. However, they may charge higher premiums based on age‑related risk factors. Some insurers specialise in senior drivers and offer competitive rates.

Q3: Do I need to tell my insurer about my medical conditions?

A: Yes. Failure to disclose a medical condition that could affect your driving ability may void your insurance coverage. If you are unsure, consult your GP and check your policy's disclosure requirements.

Q4: What happens if I develop dementia?

A: If you are diagnosed with dementia, you are required to notify your state's licensing authority. You may be deemed ineligible to hold a driver's licence, which would make you ineligible for car insurance. You must also notify your insurer immediately.

Q5: How often should I compare car insurance quotes?

A: At least once per year, before your policy automatically renews. Prices and discounts change frequently, and your current insurer's "loyalty discount" is rarely the best deal available.

Q6: Is comprehensive insurance worth it for an older car?

A: Generally, if your car's market value is less than $5,000‑$10,000, switching to third‑party property damage insurance may save you more money than you would receive if the car were written off. Calculate the difference: if comprehensive costs $1,300 and third‑party costs $500, you save $800 per year. After 3‑4 years, you could have saved more than the car is worth.

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12. FINAL VERDICT

For 70‑year‑old drivers in Australia, car insurance remains remarkably affordable compared to younger age groups. The average annual premium of $1,328 represents excellent value given the comprehensive protection provided.

The most important takeaway: While premiums increase slightly after age 70, this increase is modest – approximately $58 or 4.6% above the lowest rates enjoyed by 60‑69 year olds. In exchange, you receive coverage that protects you, your vehicle, and others on the road.

Your action plan:

Step	Action
1	Review your current policy – Are you paying for coverage you don't need?
2	Compare at least 3‑5 quotes from senior‑specialist insurers (Apia, Australian Seniors, National Seniors) and major providers
3	Ask about discounts – Seniors Card, low kilometres, no claims bonus, bundling
4	Consider increasing your excess if you can afford a higher out‑of‑pocket cost in the event of a claim
5	Switch providers if necessary – loyalty rarely pays in Australian car insurance

The peace of mind that comes with knowing you are protected on the road is invaluable. With the strategies outlined above, you can secure that protection without overpaying.

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📚 SOURCES AND REFERENCES

This guide draws on data from: CHOICE Australia (221,677 quotes, January 2026), Mozo Car Insurance Report 2024, National Seniors Australia, Apia Insurance, Allianz Australia, Australian Institute of Health and Welfare, and state transport authorities.

Last updated: April 18, 2026

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Disclaimer: This guide is for informational purposes only. Insurance premiums vary significantly based on individual circumstances including location, vehicle type, driving history, and specific policy features. Always obtain personalised quotes from licensed insurance providers before making purchasing decisions.