Key Points
- Once a driver reaches 75 they must renew their driver licence and pass a medical. They might also have to take an on-road driving test.
- Older drivers can also face higher car insurance premiums, as they are perceived as a greater risk by insurers.
- Canstar's car insurance star ratings reveal Cove and State provide the best value insurance policies for older drivers 50+.
It's a well-known fact that car insurance for young drivers can be costly. Statistically speaking, young drivers are at a higher risk of being involved in road accidents. And while getting older can bring premiums down, it's no reason to stop looking for a better deal, as there are still savings to be found.
Furthermore, while your insurance should get cheaper as time goes on, once you hit a certain age, you may find your premiums begin to rise again. This is because an insurer may feel you pose more of a risk on the road as you age.
So which insurer is best for older drivers, and what else should you consider? Canstar takes a look.
Car insurance for older drivers: what to know
There isn't specific car insurance for older drivers in New Zealand. But your age will be taken into account when you apply for car insurance. When it comes to older drivers, car insurance premiums can be cheaper or more expensive, depending on various factors.
For example, a driver in their early 50s should still be in good health and considered a low-risk driver by insurers. But once they hit their late 60s, an insurer may start to feel that they're at greater risk of having a road accident.
This is because older drivers are more likely to suffer from issues that can impact their driving ability, such as:
- Impaired vision and/or hearing
- Slower cognitive functioning and reactions
- Forgetfulness and lapses of concentration
- Medical issues, such as osteoarthritis
- Sudden and unexpected medical issues
- Increased use of prescription medication, which can impact alertness
Insurers are all about risk, so even if you're in good health, as you age your premiums could rise. However, as we mention above, there isn't insurance specifically designed for senior or older drivers. So it's always important to discuss your level of cover and premiums with your insurer, and to shop around for the best deal.
What are the licence requirements for older drivers?
Once you reach 75, your driver licence will expire, and to renew it you'll need a medical certificate to say you're fit to drive. Depending on what your doctor thinks about your state of health, you might also be required to take an on-road practical test. Importantly, if your licence is renewed, it will only be valid for five years.
Once you hit 80, you'll need to go through the renewal process again and sit another medical. And from 80 onwards, new licences are only valid for two years.
How can you bring down the cost of your car insurance?
While you can’t do much about your age, there are some steps you can take that could bring down the cost of your insurance:
- Emphasise your driving history: if you've years of clean driving, see if you can use it to leverage lower premiums.
- Take a defensive driving course: some insurers offer discounts to policy holders who have taken a defensive driving course.
- Don’t drive anything too flash: in general, an expensive car costs more to insure.
- Hop onto a younger driver's insurance policy: if you don't drive often, you could look into sharing a car with a younger family member and splitting its insurance costs. If you're not the main driver, then you don't have to be the insurance policyholder. But do note that if you are the main driver of the vehicle, it's against the law to list someone else as the main driver to bring down insurance costs.
- Bundle your insurance: does your insurer offer multi-policy discounts?
- Take advantage of other discounts: you may get a discount for signing up online or paying for a year upfront.
- Shop around: come renewal time, shop around for lower premiums or discounts.
Best car insurance for older drivers (over 50s)
If you're looking for great value car insurance for you and your family, Canstar can help. Each year we release our Car Insurance Awards, which include detailed Star Ratings of the best car insurance policies and providers across a range of driver profiles.
Below are the insurance companies that our expert research panel judged as providing Outstanding Value Comprehensive Cover Insurance for Older Drivers (50+).
Outstanding Value Cover for Older Drivers
- Cove
- State