Over 65s travel insurance: Finding the best deal
Buying travel insurance when you are over a certain age can be as difficult as buying car insurance under a certain age.
It's a sad fact that, even in today's world of increasing life expectancy and healthier fitter pensioners, the over-65s are discriminated against when it comes to taking out insurance for their holiday.
The insurers believe that with declining age comes a higher risk. The likelihood, for example, of needing medical treatment when abroad becomes greater, they argue. And so they inflate premiums and, in some cases, even refuse to insure the over-65s.
In a survey carried out by Saga it was revealed a quarter of over 65s had been turned down for travel insurance because of their age.
However, despite this, insurers and other industry insiders all agree that taking out insurance to protect you whilst travelling is essential - especially when you are over 65.
So, being stuck between a rock and a hard place, what are the options?
Well, the good news is that the Saga survey also found that 95 per cent of those who were refused insurance were able to find a policy elsewhere.
And, in fact, Saga is one of a number of specialist insurers who provide tailored policies for over 50s.
Emma Soames, of Saga magazine, says: "By specialising in the 50 plus age group we better understand their needs. This is why we don't have any upper age limits on our insurance policies."
Saga is not the only one. Organisations such as Help the Aged and RIAS also provide tailored policies which not only enable the over-65s to travel with peace of mind but provide cover for their specific needs.
This means, in theory, you will only pay for what you need. Many standard travel insurance policies will include cover for winter sports or other adventurous pursuits, but if you are a senior citizen planning a relaxing beach break having cover for these activities would be a waste of money.
Bespoke policies, it seems, are something well worth considering but be sure you read the details.
Janet Connor, managing director of over-50s insurer RIAS, explains: "It is essential to be familiar with the terms of the policy in order to know exactly what cover you are getting for your money.
"This is particularly the case with travel insurance for the over-50s as there is often the important consideration of pre-existing medical conditions."
When looking for a policy, RIAS urges older travellers to check their household insurance to find out of their belongings are covered in this policy.
If they are, this is something you will not need to pay for on your travel cover.
But you can find policies which are tailored for your needs simply by doing your homework and taking some time to scour the market.
Shopping around is also a good way of getting a cheaper deal. The more research you do, the more likely you are to find a competitive price.
It might take some time to phone around several companies for a quote, but it might just be worth the effort.
Peter Gerrard of price comparison website, Moneysupermarket.com, says many people receive a nasty shock when the reach their 66th birthday and find insurers have hiked the travel insurance prices.
Research conducted by the firm last year showed the top premium for an annual multi-trip travel insurance policy for a traveller aged 65 was £35.42. This went up to £60.30 for the same customer when they turned 66.
Mr Gerrard says: "Our research shows just how imperative it is for any travellers to shop around for travel insurance and choose the right cover for the best possible price."
However, new laws set to be enforced following the publication earlier this year of the Equality Bill should help to prevent sudden premium increases for the over-65s.
The bill, among other changes, aims to make it more difficult for providers of financial products, such as insurance, to discriminate against people because of their age.
It will mean insurers will no longer be allowed to inflate their prices for older customers. Mr Gerrard explains he hopes it will prompt a "seismic shift" in insurers' attitudes towards older customers.
However, there are also critics to the proposals.
The Association of British Insurers (ABI) believes insurance premiums should reflect the risk presented by each individual customer.
Nick Starling, ABI director, explains the legislation, "no matter how well-intentioned, could have the unintended negative consequence of forcing some insurers to withdraw certain products altogether" and thus reducing competition and availability and increasing prices for all age groups.
And the insurers who currently provide products for the niche over-65s age range believe the laws are not as appealing as they might sound.
Emma Soames of Saga says: "Compulsion to provide cover from non-specialists will simply lead to high prices or inappropriate cover."
One thing everyone seems to be in agreement on, however, is that you should not lie about medical conditions in attempts to lower premiums.
Failing to declare any pre-existing problems could invalidate your policy if you need treatment abroad.
And Insureforall.com, which also provides insurance for the over-65s, also advises never to compromise on medical and liability cover.
And it also suggests checking whether you can save yourself some money by finding out whether you can get more value from either a single or annual multi trip policy.
Anyone planning to travel only once in a year would be wasting their cash getting a multi-trip policy and a single trip OAP insurance plan would be far more suitable.
But, if think you might be taking more than one trip, the multi-trip option could save you money. This is especially useful if you plan one trip abroad and then, perhaps, a few breaks in the UK.
Chris Rolland, head of insurance at American Express, says: "It's still important to make sure trips closer to home are covered so you are not out of pocket if you have to cancel a trip or something goes wrong."
He adds: "If a multi-trip annual policy is in place, this will cover you for holidays in the UK as well as abroad."
He also adviss, that if you are travelling to Europe, be careful not to take out a worldwide policy. And he said buying online can also help reduce costs as many providers offer discounts for customers applying on the internet.
Kate Saines
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