Getting set for retirement? In that case, there’s no better time to learn about car insurance for seniors than now. As a senior, your car insurance expenditure should be as meticulously planned as your retirement funds. Otherwise, your car insurance could quickly become a hole in your pocket, wastefully sipping away a sizable chunk of your life savings.
Now, while some insurance companies offer car insurance for retirees, there’s no product category called ‘car insurance for seniors.’ That's why it's critical first to understand the different car insurance policies available. Knowing the distinction between the various policies will help you decide which insurance policy best suits you.
Without further ado, let’s chalk-up a couple of policies against each other.
How the Different Types of Insurance Policies Compare
Third-Party Property vs Compulsory Third Party (CTP)
Compulsory Third-Party insurance is the most basic form of insurance there is. It covers persons that might have sustained an injury or died in an accident involving your vehicle. However, it does not protect property. In other words, neither yours nor any other vehicle involved is covered.
Third-Party Insurance (aka Third-Party Property Damage) is very similar to CTP, but it takes things up a notch. Unlike CTP, it covers damages you cause on another person’s car or property. Still, it doesn’t cover damage caused to your vehicle if you are responsible for it.
My Verdict: Evidently, CTP is a good option for you if you can afford to pay repair costs out of your pocket without having to claim on your insurance. But if you can't pay those costs, taking Third-Party Insurance is the smarter thing to do.
Comprehensive Car Insurance vs Third Party Property
Comprehensive Car insurance caters to the cost of repairs or damages caused by vehicle-to-vehicle collisions, hail, fire, third-party damage, theft, and all sorts of accidental damages. This insurance type has you covered irrespective of who’s responsible for the accident.
Of course, Comprehensive Car insurance covers for damages you cause to another person’s vehicle too. Some companies also have terms that cover other properties, including items in the car that may have suffered damage during a collision, e.g., baby capsule, car seat, and the like. Can you see how this differs from Third Party Property Insurance?
This insurance-type could be a worthy car insurance option for pensioners. It's particularly advantageous if you drive a new-model or high-end vehicle since the cost of repairs for those can be relatively high.
My Verdict: The apparent downside to this insurance type is that it is pricier. So consider your situation and your cash liquidity levels and decide whether the comparatively hefty price of Comprehensive Car Insurance is worthwhile for you.
Third-Party Fire & Theft vs Comprehensive Car Insurance
Third-Party Fire & Theft offers a bit of extra protection above Third-Party Property. It includes cover from loss or damages caused to your car by fire or theft. This inncludes damages to other vehicles and properties when you cause an accident.
My Verdict: Although this insurance policy seems fairly extensive, the protection offered is not as broad as that which is provided in Comprehensive Car insurance packages. The specifics of what is and isn't covered by this policy vary from one insurer to another. Consider that before making a decision.
Imagine having a flat tyre and being suddenly left stranded by your vehicle. Road Assistance exists to rescue you in such circumstances. Typically, road assistance includes towing to a repair location, jump starts for dead batteries, replacement of flat tyres, extrication if your vehicle gets stuck in snow or mud, and so on.
My Verdict: Although Road Assistance isn't an insurance package, it's a good-to-have, and many insurance companies offer it. I strongly suggest that you make it a bare minimum alongside CTP.
Who Has the Cheapest Car Insurance for Seniors in Sydney?
It’s difficult and perhaps impossible to start outright which insurer is the cheapest car insurance for seniors in Sydney. However, we’ve compiled a list of insurers offering the most pocket-friendly offers (and freebies) based on popular client ratings. In no particular order, here is a list of the cheapest car insurance for seniors in Sydney:
1. Australian Seniors
Australian Seniors Insurance Agency is a reputable insurance agency catering to over 50s, a class they consider 'too often ignored.' Australian Seniors has lots of fantastic offers for seniors. According to productreview.com, Australian Seniors garnered 4.8 stars for money rating.
- Website: www.seniors.com.au
2. Virgin Money
Virgin Money is a 25-year-old banking and financial service provider with a range of savings and investment products, mortgages, credit cards, insurance, and pensions. It's renowned for providing an adequate cover at a reasonable price. And their years of experience reflect in their service and reputation for customer satisfaction.
- Website: virginmoney.com.au
3. Bingle Comprehensive
Bingle Comprehensive Insurance Company is an award-winning, online-only, no-fuss, low-cost car insurance company. It is popularly considered to be the go-to for ‘low cost options that cover the basics’.
- Website: www.bingle.com.au
4. Budget Direct
Low cost and value-focused, Budget Direct handles your home and car insurance policies with you at heart. Just as the name implies, their plans are drafted with your budget in mind. They have a great road assistance plan and regularly have great offers.
- Website: www.budgetdirect.com.au
How Can Senior Citizens Make Their Car Insurance Cheaper?
Here are five tips to lower your spend on car insurance.
1. Source for Discounts
This is nothing to be ashamed of! Insurance companies offer discounts for sign-ups, renewing your drivers’ license, and so forth. These little savings ultimately add up. So in your spare time, peruse the net, look in newspapers, and you will find discounted car insurance for seniors in NSW.
2. Choose a Car that is Cheap to Insure
Did you know that your vehicle-type is a crucial factor in determining insurance rates? For instance, cars with protective features such as anti-lock brakes or airbags often get discounted insurance rates.
3. Drive Less
The less time you spend on the road, the less likely you are to have an accident. Companies take note of this and are likely to offer a reduction in your rates. This trick is more beneficial if you avoid driving during rush hours.
4. Pay As You Go
Pay As You Go (aka Pay as You Drive) goes hand in hand with driving less or covering less kilometres. Essentially you pay premiums per km driven. Yes, it’s a thing.
5. Take a Driving Lesson
In this situation, even if you have driven accident-free for years, you should take a driving course. It gives your insurance company confidence in you and makes them more likely to provide you with a discount.
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