Even healthy holidaymakers over 65 can struggle to find affordable travel insurance, with few policies on the market and premiums often exorbitant, new research from Which? reveals.
The consumer group quizzed its members about their experience searching for insurance over the last two years. It also conducted mystery shopping research in September, using a comparison site to search for quotes for an annual European policy for healthy travellers.
It found that while the market for travel insurance is tough for all customers over 65, the real tipping point is a holidaymaker’s 70th birthday. For 70-year-old customers, the average price for the cheapest five policies on the market was £57—nearly double the £29 average seen by customers aged 65.
For even older travellers or those who disclose health conditions, the quotes can be stratospheric. One Which? member said declaring his wife’s irregular heartbeat when searching for annual worldwide cover led to "either a refusal to insure to astronomical premiums." One insurer quoted them £3,200 for the policy.
Many travel insurers refuse to cover holidaymakers of a certain age. When Which? researchers posed as a 55-year-old applicant, they received 76 quotes for policies. But a hypothetical 80-year-old received just seven.
Sarah Brodie, senior policy adviser for general insurance at the Association of British Insurers (ABI), said steep travel insurance quotes reflect the risk of older travellers or those with pre-existing medical conditions claiming for "jaw-droppingly expensive overseas emergency medical treatment costs."
But she insisted that travel insurance "remains competitively priced."
"It can pay to shop around, always making sure that you buy the policy most suited to your needs, not simply on price, and that you answer all questions, especially on any pre-existing medical conditions, fully and honestly," she said.
It's not just travel insurance that becomes more expensive for seniors. Although older drivers are often rewarded for their experience with cheaper car insurance premiums, this reverses once a motorist reaches their mid-seventies.
One member, fit and active at 78, was astounded to be offered quotes ranging from £450 to £2,134 for car insurance. "I still run, jump in rivers and chase salmon, and run stables and horses. It’s annoying to discover that at this age you’re deemed incapable of even driving," they said.
Which? says older customers who are struggling to find insurance cover may need to turn to specialist insurers or brokers. This is especially true of people who want to provide "relevant context to your history or circumstances that you can’t communicate on an online form," Which? Money editor Jenny Ross said.
New regulations put in place last November by the Financial Conduct Authority (FCA) require insurers who can't cover a customer with pre-existing medical conditions—or can only cover them with premiums of £100 or more—to direct them to a list of companies who can. The City regulator introduced the roles after finding that of the 14.1 million consumers with pre-existing conditions who search for travel insurance each year, many face unaffordable premiums, 0.7% are denied coverage altogether and 11% are forced to purchase policies excluding coverage for their condition.
The City regulator said switching to a specialist provider can save customers with more serious pre-existing conditions around 40% on their premiums.
Additionally, the British Insurance Brokers’ Association (Biba) can direct customers to specialist brokers through the "find insurance" service on its website.
