{"id":2188,"title":"Costco Car Insurance in Australia: A Practical Guide for Drivers Over 60, 70 and 80","slug":"costco-car-insurance-in-australia-a-practical-guide-for-drivers-over-60-70-and-80","lang":null,"description":"Learn how Costco car insurance in Australia may work for drivers over 60, 70 and 80. Compare comprehensive cover, senior car insurance quotes, excesses, vehicle value options and practical ways to reduce premiums.","content":"

Older Australian drivers often have different priorities when reviewing car insurance. Some may drive fewer kilometres after retirement, keep their vehicles in secure garages, avoid peak-hour travel or have many years of claims-free driving. Others may want broader protection because replacing a vehicle or paying for accident repairs could place pressure on a fixed retirement income.

Costco Australia currently promotes car, home and small-business insurance services for members through QBE. Costco’s website indicates that eligible members may receive a discount when purchasing a new QBE car insurance policy online. However, the insurance is issued and managed by the insurer rather than Costco itself, and any discount, cover or eligibility conditions should be confirmed in the applicable policy documents.

The age groups shown in informational materials—such as drivers aged 50–59, 60–69, 70–79 and 80 or older—can be useful starting points for research. They should not be interpreted as separate guaranteed insurance plans. Australian insurers generally calculate premiums individually using several risk factors, not age alone.

This guide explains how Costco-associated car insurance may work in Australia, what fully comprehensive insurance usually covers and what drivers over 60 or 70 should examine before requesting senior car insurance quotes.

How Costco Car Insurance Works in Australia

Costco does not appear to underwrite its own Australian motor insurance policies. Instead, it connects members with insurance supplied through QBE. This distinction matters because the insurer determines:

Whether an applicant is eligible
The premium and excess
What events are covered
The value assigned to the vehicle
Claims procedures
Policy exclusions and conditions

Costco membership may provide access to a member-related offer, but it does not automatically mean that one policy will be cheaper for every driver. The final premium can depend on the driver’s residential address, vehicle, annual kilometres, claims history, nominated drivers, parking arrangements and selected level of cover.

A driver researching Costco car insurance should therefore compare the actual policy and quote with alternatives available from other Australian insurers. A percentage discount is useful only when the final premium, excess and coverage remain competitive.

Understanding Australian Car Insurance Types

Australian motorists may encounter several forms of vehicle insurance. They do not provide the same protection.

Compulsory Third Party Insurance

Compulsory Third Party insurance, usually called CTP, covers liability for injuries or death caused to other people in a motor accident. Its administration differs between states and territories.

CTP does not generally pay for damage to the insured vehicle, another person’s car or other property. Drivers normally require separate property insurance if they want that protection.

Third Party Property Damage Insurance

Third party property damage insurance generally covers damage the insured driver causes to another person’s vehicle or property. It normally does not cover accidental damage to the insured driver’s own vehicle.

This may be considered for an older, low-value vehicle, but drivers should think carefully about whether they could afford to repair or replace their own car after an at-fault accident.

Third Party Fire and Theft Insurance

This category usually includes third party property damage protection and limited cover for the insured vehicle if it is stolen or damaged by fire.

It offers more protection than basic third party property cover but remains narrower than comprehensive insurance.

Fully Comprehensive Insurance

The phrase car insurance fully comprehensive is often used by consumers to describe the broadest common form of motor cover. In Australia, the usual product name is comprehensive car insurance.

Comprehensive insurance generally covers accidental damage to the insured vehicle as well as damage to other people’s vehicles or property. It may also cover theft, fire and certain weather-related events. Coverage is still subject to policy limits, exclusions and excesses.

A comprehensive policy does not cover every possible loss. For example, claims may be declined or reduced when:

The driver was not appropriately licensed
The vehicle was being used outside the declared purpose
An excluded or unlisted driver was operating the vehicle
The driver was affected by alcohol or drugs
The vehicle was unsafe or unregistered
The damage resulted from wear, deterioration or mechanical failure
Policy information was incomplete or inaccurate

The Product Disclosure Statement should be read before relying on any form of fully comprehensive insurance.

Car Insurance for Drivers Over 60

People searching for over 60s car insurance may expect a dedicated senior product. Some insurers market policies to mature drivers, while others use standard policies and assess each applicant individually.

Age can affect underwriting, but it is only one factor. A person over 60 may benefit from a long driving history and a low claims record. At the same time, the insurer may consider the type of vehicle, where it is kept and who else is permitted to drive it.

When comparing car insurance for over 60s, consider the following information:

Annual Distance Driven

Retired drivers may travel fewer kilometres than commuters. Some insurers take estimated annual kilometres into account, while others offer limited-use or pay-as-you-drive arrangements.

The declared estimate should be realistic. Understating vehicle use could create difficulties if a later claim reveals substantially higher driving activity.

Claims and Driving History

A long claims-free history can help, but a no-claim discount should not be evaluated in isolation. ASIC’s Moneysmart service notes that a no-claim bonus does not necessarily mean the total policy cost is lower. Drivers should compare the final premium rather than focusing only on the advertised discount.

Additional Drivers

Adult children, grandchildren or other household members who use the vehicle may affect the price and excess. Younger or inexperienced drivers can attract an additional excess.

All regular drivers should be disclosed as required by the insurer. Choosing a senior-focused policy may provide little benefit if the vehicle is frequently used by a driver in a higher-risk category.

Vehicle Use

Drivers should accurately state whether the car is used privately, for commuting, for business or for rideshare and delivery work. A private-use policy may not cover commercial activities.

Over 70s and Over 80s Car Insurance

Researching over 70s car insurance follows many of the same principles, but licensing and medical requirements may become more relevant.

Driver licensing rules for older Australians vary by state and territory. For example, New South Wales applies age-related medical and driving assessment requirements at particular stages. Drivers aged 75 and over may need annual medical assessments, while drivers aged 85 and over may need an older-driver test or assessment every two years to retain an unrestricted licence.

These NSW requirements should not be treated as national rules. Drivers should check the transport authority for their own state or territory.

From an insurance perspective, an older driver should ensure that:

Their licence is current and valid
Any licence restrictions are observed
Relevant medical conditions are disclosed where required
The policy reflects how and where the vehicle is used
All nominated drivers remain eligible

Being over 70 or 80 does not automatically prevent a person from obtaining comprehensive insurance. However, acceptance and pricing depend on the insurer’s underwriting criteria.

What Comprehensive Cover Should Be Compared?

Two comprehensive policies can have similar names but materially different benefits. When reviewing Costco-associated cover or other fully comprehensive insurance, compare the following areas.

Agreed Value and Market Value

Under an agreed-value policy, the insured value is set when the policy is issued or renewed. Under market value, the insurer determines the vehicle’s value around the time of a total-loss claim, based on factors such as age, condition, mileage and comparable vehicle prices.

Agreed value may offer more certainty, but it can carry a higher premium. Market value may be suitable for some vehicles, although the eventual settlement could differ from the owner’s expectations.

Standard and Optional Excesses

The excess is the amount the policyholder may need to contribute to a claim. A higher voluntary excess can reduce the premium, but it also increases the out-of-pocket cost after an accident.

Older drivers on a fixed income should consider whether the selected excess would be affordable at short notice.

Choice of Repairer

Some policies allow the policyholder to nominate a repairer. Others give the insurer control over the repair network. Drivers who have an established relationship with a local repair business may value choice-of-repairer provisions.

Hire Car Benefits

Hire-car cover may apply after theft, after an insured accident or only when an optional benefit has been purchased. Limits can apply to the daily cost and maximum rental period.

A retiree who relies on the vehicle for medical appointments or caring responsibilities may place greater importance on this feature.

Windscreen and Glass Cover

Some comprehensive policies require payment of the standard excess for a windscreen claim. Others offer a reduced or no-excess glass benefit, sometimes at additional cost.

Roadside Assistance

Roadside assistance is not always included in comprehensive insurance. It may be sold separately or offered as an optional benefit.

New-for-Old Replacement

Some policies replace a recently purchased vehicle with a new equivalent after a total loss, subject to age, ownership and kilometre limits. Drivers should check the exact eligibility period.

How to Request Senior Car Insurance Quotes

A useful senior car insurance quote comparison requires consistent information. Quotes should ideally use the same:

Vehicle and model
Agreed or market value basis
Annual kilometre estimate
Nominated drivers
Excess level
Optional benefits
Parking location
Use classification

Comparing one basic policy with another policy containing hire-car, windscreen and roadside benefits can give a misleading impression of price.

Applicants should also check whether a quoted premium includes government duties, levies, monthly-payment charges or promotional discounts that expire at renewal.

The Insurance Council of Australia maintains a directory of insurers and insurance categories. It is an informational directory rather than a product comparison or recommendation service, but it can help consumers identify providers operating in the motor insurance market.

Practical Ways to Get Cheaper Car Insurance

The goal to get cheaper car insurance should be balanced against adequate protection. Reducing the premium by removing important benefits or choosing an unaffordable excess can create greater financial risk later.

Practical steps may include:

Compare at Each Renewal

Renewal prices can change even when the driver’s circumstances remain similar. ASIC’s Moneysmart service recommends comparing policies rather than automatically accepting a renewal.

Review Annual Kilometres

Drivers who now travel less after retirement should update their estimated annual distance. An outdated commuting estimate may no longer reflect actual use.

Consider the Excess Carefully

Increasing the excess may lower the premium. The saving should be weighed against the amount that would need to be paid during a claim.

Improve Vehicle Security

Secure overnight parking, alarms or approved tracking devices may affect pricing for some vehicles and locations.

Remove Unnecessary Options

Optional benefits should be assessed individually. A household with a second vehicle may not need extensive hire-car cover, while a driver who depends on one vehicle may consider it important.

Compare the Final Price

Costco membership discounts, online discounts and no-claim bonuses should be assessed through the final payable premium. The headline discount alone does not establish which policy provides better value.

Conclusion

Costco car insurance in Australia is best understood as an insurance service made available to Costco members through QBE, rather than a policy underwritten directly by Costco. Member offers may reduce the quoted price for eligible new policies, but they do not guarantee that the cover will be the least expensive or most suitable option for every driver.

Drivers aged 60, 70, 80 or older should compare comprehensive cover based on their actual circumstances. Important considerations include annual kilometres, claims history, nominated drivers, vehicle value, excesses, repair arrangements, licence requirements and optional benefits.

The most informed approach is to obtain comparable quotes, read the Product Disclosure Statement and Target Market Determination, verify current licensing obligations and evaluate the total cost rather than relying on age labels or promotional discounts.

Disclaimer

This article provides general information only and does not constitute personal financial, legal or insurance advice. Insurance products, premiums, discounts, licensing rules, coverage and eligibility requirements may vary by provider, location and individual circumstances. Confirm current details with the insurer, Costco Australia and the relevant state or territory authority before making a decision.

References

Costco Australia — Member services and insurance information.
ASIC Moneysmart — Choosing car insurance and comparing policy types.
ASIC Moneysmart — Ways to manage car insurance costs.
Insurance Council of Australia — Motor insurance information and insurer directory.
NSW Government and Service NSW — Older-driver licensing and medical assessment information.

","type":"normal","status":"published","published_at":null,"rac":"Costco Car Insurance in Australia: A Practical Guide for Drivers Over 60, 70 and 80","keyword_set":null,"feature_media":"https://nwsdata.info/media/posts/2a966df9-2e9b-437d-86ed-00e8463f6f3c.jpg","style":null,"channel":null,"campaign_id":null,"account_id":null,"gtag":null,"ggid":null,"fbid":null,"ttid":null,"traffic_type":null,"created_at":"2026-08-28T04:32:17.000000Z","updated_at":"2026-08-28T04:32:17.000000Z"}