For many Australians, driving well into their seventies and eighties is not only a matter of convenience but also independence. Yet in 2025, new insurance rules mean older drivers could soon be paying more to stay on the road. Seniors are being urged to review their policies as insurers introduce age-related adjustments that may add hundreds of dollars to annual premiums.
Why Insurance Costs Are Rising for Seniors
Insurers argue that claims data shows an increased risk of accidents among older age groups. Slower reflexes, reduced vision, and higher medical risks after an incident all contribute to higher costs for insurance providers. As a result, some companies have begun adjusting premiums or introducing new conditions for drivers over 70.
While not all insurers are applying blanket increases, many have confirmed that age will now play a bigger role in pricing policies. For some seniors, this could mean annual insurance bills climbing significantly.
What the New Changes Involve
From mid-2025, several major insurers have rolled out new criteria that specifically affect drivers aged 70 and over. These include mandatory medical declarations, more frequent renewal checks, and higher base premiums. Some policies may also require seniors to undertake driver safety assessments before renewal.
How the Costs Compare
The impact will vary depending on the insurer, the state, and the type of vehicle. The table below outlines an example of how premiums differ before and after the changes.
| Age Group | Average Annual Premium (2024) | Average Annual Premium (2025) | Typical Increase |
|---|---|---|---|
| 60–69 | $1,050 | $1,080 | +$30 |
| 70–74 | $1,080 | $1,220 | +$140 |
| 75–79 | $1,120 | $1,350 | +$230 |
| 80+ | $1,180 | $1,480 | +$300 |
These increases mean that older Australians could be paying hundreds of dollars more per year, particularly those over 75.
What Seniors Can Do
While the changes are widespread, they are not uniform across the industry. Some insurers are offering discounts for seniors who complete accredited driver safety programs, while others continue to provide lower premiums for drivers with no claims history. Seniors are encouraged to compare providers, check for loyalty penalties, and consider switching to policies tailored for older drivers.
Balancing Safety and Fairness
Advocacy groups argue that while road safety is important, not all seniors present higher risks. Many retirees drive fewer kilometres than younger people, often sticking to local roads and avoiding peak-hour traffic. These groups are calling for fairer pricing models that reflect driving behaviour rather than age alone.
Final Thoughts
Insurance is set to become more expensive for Australians over 70, with some drivers facing steep increases from 2025 onwards. Seniors should review their policies carefully, shop around for better deals, and consider whether additional safety programs could reduce their premiums. Although the changes are intended to reflect higher risks, they also highlight the importance of protecting the independence of older drivers without unfairly penalising them.
