The age-old insurance problem for the over-65s

18 June 2010

Many insurers are hitting the over-65s with significantly higher premiums for car and travel cover, often refusing to provide quotes at all, according to new research from the experts at Which? Money*.

The consumer champion found a huge range in the price of travel insurance products**, with a steep increase when passing through the different age brackets. For example, a 74-year-old would pay £383 for an annual worldwide policy with Rias. Yet a year later, aged 75, this would cost £707 – a price hike of £324.

Of the 98 annual worldwide policies the Which? Money experts looked at, only five covered people aged 80 plus. Single-trip policies also revealed big differences - a 69-year-old would pay £57 for a 15-day European single-trip policy with Bupa Premier, but would have to fork out £86 when aged 70.

Car insurance was no better - the experts found that 60 per cent of policies were not available to those aged 81 and over, and again, there were huge differences in price between age ranges, even among those that specialise in insurance for older people***. An annual policy with Saga for a 75-year-old woman would cost £702, but would soar by 74 per cent to £1,224 at 85 years old.

Which? Money also saw considerable differences between online and telephone quotes with the same companies, showing that it pays to buy online.

Which? chief executive Peter Vicary-Smith says:

“Our research shows that many over-65s are getting a raw deal when it comes to arranging insurance simply because of their age. Restrictions imposed by insurers leave many people struggling to pay increased premiums just when they may need cover the most.

“It’s vital to shop around to get the best rate due to the considerable differences between quotes over the phone and online, and always ensure you get sufficient cover for your needs.”

Notes to Editor

Which? is the leading independent consumer champion in the UK. We provide impartial, expert information on products and services in our magazines, books and online to help consumers make more informed choices, and we campaign on issues that matter to all consumers, from food to finances, health to estate agents. For more information on how we can help you, visit http://www.which.co.uk.

The full article ‘The age-old insurance problem’ appears in the July 2010 issue of Which? Money magazine. For further information, the full article, a copy of the magazine or an interview, please contact Helen Lacey.

For more information visit www.which.co.uk/money

* 2,123 members of the Which? online community completed a survey on over-65s insurance in April/May 2010.

** The table, below, shows the Best Buy annual worldwide travel insurance policies and specialist insurance providers for people from 59 years of age and upwards. We have also picked out the cheapest and most expensive quotes among the specialist travel insurance providers. Best Buys are in red. Specialist providers are in black. Specialist providers’ policies may include pre-existing medical conditions and therefore these could be reflected in the higher prices. All prices correct at 24 May 2010.

a Valid up to your 76th birthday

*** Chart shows amount of available car insurance policies - as a proportion of the whole market - that are available to you as you reach specific ages.