Car and travel insurance boost for older consumersIt should be easier for older people to get cover
04 April 2012
Which? is pleased to see the announcement by the insurance industry that should improve the situation for older motorists and travellers trying to get cover.
Older customers will find it easier to get motor and travel insurance under an agreement between the Association of British Insurers (ABI), the Government and the British Insurance Brokers’ Association (BIBA).
Signposting should be helpful
Under the agreement, which comes into force on 6 April, if an insurer or insurance broker is unable to offer cover to an older motorist or traveller due to the fact that their age is above any upper age limits they have, then they will automatically refer them to an alternative provider who can meet their needs or to a dedicated signposting service, such as BIBA’s ‘Find a Broker’ service or website.
All ABI members will adhere to the agreement as a condition of membership and all BIBA brokers will also undertake to comply with this agreement. Non ABI and BIBA members will follow the agreement on a voluntary basis.
The ABI will publish annual aggregate data showing claims costs under motor and travel insurance, broken down by age ranges. BIBA will publish details of the enquiries to the BIBA ‘Find a Broker’ service.
Insurance announcement welcomed
Home Secretary and Minister for Women and Equalities, Theresa May said: 'I fully support the work the Association of British Insurers and the British Insurance Brokers Association are doing to make it easier for older people to get motor and travel insurance and provide greater transparency on how decisions are made. This is a great example of businesses working with government to tackle discrimination.'
BIBA chief executive, Eric Galbraith added: 'This new agreement is a great solution to helping older people more easily access suitable insurance protection. BIBA’s ‘Find a Broker’ helpline and website can help older people to achieve the cover they need, giving them the peace of mind to go on holiday and drive their car into their later years.'
Which? insurance expert, Paul Davies said of the initiative: 'We're hopeful that this move will mean that older motorists and travellers find it easier to access insurance and Which? has been pleased to be part of this process. It remains to be seen whether the insurance that people gain access to is affordable and we'll await the publication of the annual aggregated data with interest to see if it's clear and accessible to consumers.'