Why older Australians are becoming smarter car owners

The car has represented freedom for generations of Australians.

It meant weekend road trips, family holidays, commuting to work, visiting grandchildren, towing the caravan north for winter or simply knowing you could leave the house whenever you pleased.

But for a growing number of Australians — particularly older drivers living on tighter retirement budgets — owning a car is starting to feel less like independence and more like financial endurance.

Petrol remains volatile, insurance premiums have surged, servicing costs continue climbing and even relatively minor repairs can now land with the force of a small household crisis.

And while younger Australians are increasingly delaying servicing or cutting corners to reduce costs, many older drivers appear to be responding differently: driving more strategically, planning ahead and returning to habits learned decades ago when maintaining a car properly was simply part of life.

According to new research from Youi Insurance, more than half of Baby Boomers say rising costs are changing the way they drive, maintain and think about their vehicles — from combining trips and driving less often to becoming far more selective about when they get behind the wheel at all.

Insurance costs are becoming a major pressure point

CarExpert founder Paul Maric believes insurance premiums are now one of the biggest shocks confronting Australian motorists.

“Premiums have gone through the roof, and a lot of it is being driven by theft,” Maric said.

In Victoria particularly, some vehicles have become dramatically more expensive to insure because of how frequently they are being targeted.

“Late-model Holden Commodores are almost uninsurable because thieves target them so heavily,” Maric explained.

“Certain Toyotas have also seen premiums spike for the same reason.”

Electric vehicles are also creating a new layer of complexity.

“EVs aren’t necessarily being stolen more,” he said. “The issue is that many repairers still won’t work on them, so the limited repair network pushes costs up.”

For older Australians already juggling rising household bills, insurance increases are quietly reshaping driving habits and forcing more careful decisions about when and where to travel.

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Driving habits are changing in retirement

Despite the survey findings, Maric said older Australians are not necessarily abandoning driving altogether, and instead many are simply driving differently.

“It’s not always less driving,” he said. “It’s different driving.”

For retirees no longer commuting daily, the endless suburban stop-start routine often disappears. In its place come longer trips — towing caravans, visiting family interstate or taking extended regional holidays around Australia.

“That changes the focus completely,” Maric said. “You become less worried about everyday city wear and tear and more focused on reliability and making sure the vehicle is properly prepared for long-distance travel.”

The generation that still respects maintenance

One of the more striking insights from the research is the attitude gap between generations when it comes to maintaining a vehicle properly.

Maric believes older Australians often approach car ownership with a more disciplined mindset because many grew up in an era where regular maintenance was simply expected.

“Older Australians understand cars need ongoing attention. They either learned to do basic maintenance themselves or they grew up knowing servicing was non-negotiable,” Maric said.

That mindset can save thousands over the long term.

“Generally, older drivers budget better,” Maric explained. “They look at the servicing schedule, they understand there are going to be costs over three to five years, and they factor that into ownership.”

Younger drivers, meanwhile, are more likely to delay or skip servicing altogether in an effort to save money immediately. That short-term thinking can quickly unravel.

“The risk is oil degradation and bigger mechanical problems later and manufacturers can knock back warranty claims if the servicing schedule hasn’t been followed. It’s like avoiding the dentist,” he said.

“You save money in the short term, but eventually it can cost you a lot more.”

Why driving less can also create problems

Cutting back on unnecessary driving may save money at the bowser, but Maric warns there’s another issue emerging — cars sitting unused for extended periods.

“Classic cars are the perfect example,” he said. “A lot of people bought dream cars during COVID and now barely drive them.”

That lack of use can trigger a surprising list of issues:

• Flat batteries
• Stale fuel
• Tyre flat spots
• Stagnant engine oil

Diesel vehicles can face even bigger complications if they are used only for short suburban trips.

“Diesels need longer drives to properly burn off soot inside the diesel particulate filter. If they don’t get that opportunity, those filters clog up and they become very expensive to replace.”

The simplest habits are often the most valuable

Maric believes many Australians overthink vehicle maintenance when the most effective savings often come from small, consistent habits, and recommends checking engine oil regularly, rotating tyres every six months and ensuring washer fluid is always topped up.

They are basic tasks, but neglected vehicles often become expensive vehicles.

For larger maintenance costs, his advice is equally straightforward: plan ahead.

“Every car has a maintenance schedule,” he said.

“If you know a major service is coming and it’s going to cost money, start putting money aside early so it doesn’t become a financial shock.”